Insurance conglomerate Bajaj Group is set to invest 100 billion rupees (US$1.1 billion) to establish a nationwide chain of hospitals in India.
Marking an expansion of its healthcare portfolio, the group aims to deploy the investment in phases.
The plan will create a network of both affordable and premium healthcare facilities across the country, according to sources familiar with the matter who requested anonymity as the plans aren't public.
The venture will be spearheaded by Nirav Bajaj, son of Bajaj Auto chairman Niraj Bajaj, building upon the group's existing healthcare interests.
The conglomerate already operates Bajaj Allianz General Insurance, which provides health coverage, and Bajaj Finserv Health Ltd., a digital healthcare platform offering telemedicine and pharmacy services.
This move comes as India's healthcare sector experiences substantial growth, driven by increasing wealth, broader insurance coverage, and an aging population.
Market leader Apollo Hospitals Enterprise Ltd. reported revenue of 190 billion rupees and net income exceeding 8.7 billion rupees for the year ending March 2024.
The Bajaj family, with an estimated worth of US$20 billion, brings considerable financial strength to the venture. Their century-old conglomerate spans 40 companies, including motorcycle manufacturing giant Bajaj Auto Ltd.
The timing appears favourable as Indian hospital chains show strong market performance. Apollo Hospitals' shares rose 28% in 2024, while competitor Max Healthcare Institute Ltd. surged 64%.
The investment follows the formation of Bajaj Vitality last year and represents a strategic expansion of the group's healthcare ecosystem, potentially creating synergies with its insurance and digital health services.
The entry of Bajaj into the hospital sector follows its recent healthcare investments in India, including Blackstone's US$5 billion hospital deal announced last quarter.
Industry analysts suggest this surge in healthcare investment could help address India's growing demand for quality medical facilities, particularly in tier-two and tier-three cities.
A Bajaj representative declined to comment on the investment plans.
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