Highlights

• Fortis Healthcare has announced a total planned investment of approximately ₹840 crore to expand hospital capacity in Bengaluru.
• The company will acquire People Tree Hospital Yeshwanthpur for ₹430 crore and invest an additional ₹410 crore over the next three years.
• The transaction supports Fortis’ cluster-based growth strategy with potential to scale up to more than 1,500 beds across seven facilities in Bengaluru.

Fortis Healthcare Limited (NSE:FORTIS) has announced a significant expansion initiative in Bengaluru, with plans to invest approximately ₹840 crore to add more than 300 beds through the acquisition and expansion of People Tree Hospital Yeshwanthpur.

The company has signed definitive agreements for the acquisition of the 125-bedded People Tree Hospital Yeshwanthpur, located in north-west Bengaluru. The acquisition will be executed through Fortis’ wholly owned subsidiary, International Hospital Limited, by acquiring 100% ownership of TMI Healthcare Private Limited, which operates the hospital.

As part of the transaction, International Hospital Limited will also acquire the hospital building, the underlying land, and an adjacent land parcel. The cumulative transaction value stands at ₹430 crore, which includes the debt currently residing within TMI Healthcare. The final consideration will be subject to customary closing adjustments as outlined in the definitive agreements.

Strategic Location and Clinical Offerings

People Tree Hospital Yeshwanthpur is situated in a dense residential area with growing commercial development and strong connectivity to key transportation hubs. The NABH-accredited facility offers a range of clinical specialties, including cardiac sciences, orthopedics, neurosciences, renal sciences, and gastroenterology.

The hospital currently operates with 125 beds and reported revenues of approximately ₹74 crore in FY25. Fortis plans to integrate the facility into its existing Bengaluru network to enhance operational scale and service delivery.

Capacity Expansion and Capital Deployment

The acquisition of an adjacent land parcel of approximately 0.8 acres provides Fortis with the ability to expand the facility to more than 300 beds. The company has outlined plans to invest an additional ₹410 crore over the next three years to augment bed capacity, upgrade medical equipment, and expand clinical programs. Planned enhancements include the addition of advanced services such as radiation oncology.

Strengthening the Bengaluru Cluster Strategy

With this acquisition, Fortis is set to further consolidate its presence in Bengaluru, where it currently operates seven facilities, including operations and management locations. The company has outlined potential to scale its Bengaluru network to more than 1,500 beds over the next three years, compared with the current base of approximately 900 beds.

The transaction is expected to be completed by the end of January 2026, subject to the fulfilment of standard conditions precedent. Once completed, the acquisition will form a key part of Fortis Healthcare’s ongoing efforts to expand capacity and coverage in one of India’s largest healthcare markets.

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