Gurugram-based healthcare services provider Fortis Healthcare on Saturday announced a major expansion plan in Bengaluru. The BSE 500 firm said it will
invest around Rs 840 crore, including the acquisition of People Tree Hospital in Yeshwanthpur for Rs 430 crore. In a regulatory filing with the exchanges -- BSE and NSE -- the company stated that it has signed definitive agreements to acquire 100 per cent of TMI Healthcare Pvt Ltd, which operates the 125-bed People Tree Hospital, through its wholly owned subsidiary, International Hospital Limited.
Fortis Healthcare–People Tree Hospital deal details
The Rs 430-crore acquisition includes the hospital building, the underlying land parcel, and an additional 0.8-acre adjacent land, which Fortis plans to use for future expansion. The company said the transaction value reflects both the existing infrastructure and the strategic potential of the location in north-west Bengaluru.
The BSE 500 firm plans to invest an additional Rs 410 crore over the next three years to expand the People Tree Hospital facility to more than 300 beds. According to the company, the expansion will focus on upgrading medical equipment, scaling up clinical programmes, and strengthening infrastructure, including the introduction of Radiation Oncology services.
The transaction is expected to be completed by the end of January 2026, the healthcare firm said.
People Tree Hospital's financial performance
People Tree Hospital currently generates annual revenues of around Rs 74 crore in FY25. Fortis said it sees strong potential to improve both revenue growth and profitability once the expansion is completed and operational efficiencies are realised.
The acquisition further bolsters Fortis Healthcare’s footprint in Bengaluru, where it already operates seven facilities, including operations and management (O&M) hospitals, with nearly 900 beds. The company believes it can scale this up to over 1,500 beds in the coming years.
Commenting on the deal, Dr Ashutosh Raghuvanshi, CEO of Fortis Healthcare, said the acquisition aligns with the company’s cluster-focused growth strategy, allowing it to leverage operational scale, clinical depth, and synergies across the Bengaluru region.
“Bengaluru is a key healthcare market for Fortis, and this acquisition supports our long-term growth ambitions in high-demand urban clusters,” Raghuvanshi said.
Meanwhile, Dr Jothi Neeraja, CEO of People Tree Hospitals, described the acquisition as a “pivotal milestone” for the institution. She said integration with Fortis Healthcare would bring modernisation, continuity of care, and long-term benefits for patients, doctors, and staff.
Fortis Healthcare currently operates 33 healthcare facilities across India, with approximately 5,800 operational beds and over 400 diagnostic laboratories.
About People Tree Hospital
The Yeshwanthpur-based People Tree Hospital is a NABH-accredited multi-specialty facility, offering services across cardiac sciences, orthopaedics, neurosciences, renal sciences, and gastroenterology.
Stock closes higher on Friday
Shares of Fortis Healthcare on Friday has ended at Rs 889, an increase of mor than 2.5 per cent, according to the NSE.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
