- 24 Jun 2022
- ICICIdirect Research
HCG CONSOLIDATING PRESENCE IN EXISTING CLUSTERS
HCG - 489 Change: 16.80 (3.56 %)News: Healthcare Global has entered into a business transfer agreement with Radiant Hospital Services for the acquisition of its radiation therapy centre, along with its assets in Sambalpur, Odisha for Rs. 16 crore. In addition, the company said that, 1) HCG is considering acquiring 51% stake in Nagpur Cancer Hospital and Research Institute (NCHRI), 2) HCG is setting up a 25 bed cancer care centre in Whitefield, Bangalore, likely to commence operations in two years, 3) The company is expanding the existing facility from 100 beds to 200 beds, by setting up a new facility in Ahmedabad, which is expected to be operational in FY24, and 4) HCG is considering strategic options in relation to developing the fertility clinic business
Views: HCG's acquisition of Radaint's asset is a move to increase its presence in Odisha, where it already has 116 bed cancer center in Cuttack. HCG's Bangalore (RoCE: ~ 25%) and Ahmedabad (RoCE: ~ 30%) are matured centres and centres of excellence, HCG is looking to add beds in these markets for high realisation treatments. HCG, with its integrated, one-stop-solution and focused model is looking to consolidate existing networks
Impact: Positive