Pan-Asian healthcare major Parkway plans big India push

Singapore-based Parkway Pantai, one of the largest Asian healthcare providers, is planning huge healthcare capacities in India, challenging leaders like Apollo and Fortis Hospitals.

Parkway, owned by the Malaysian sovereign fund  Khazana backed IHH Healthcare Berhand, is planning to add about 4,000-5,000 beds in the next couple of years and half of this capacity addition will be in India, Dr Tan See Leng, managing director and chief executive officer of both Parkway Panthai and IHH Healthcare, told Business Today.

Parkway operates in the premium tertiary care segment and the 2,000-2,500 bed capacity addition plans could translate to an investment of at least Rs 2,000-Rs 3,000 crore, said industry sources.

"We have already invested more than $300 million in India, which is the highest overseas investment in India's healthcare sector. I am not in a position to say how much we are going to invest in India, but can say we are going to make India a big platform for growth", said Tan See Ling.

Parkway owns over 7,000 advance care beds in about 39 hospitals in markets like Singapore, Malaysia, Hong Kong, China and Vietnam.

Recently, Parkway had made two large acquisitions in India. In March, it bought majority stake in Hyderabad-based Continental Hospital for about Rs 300 crore and in September, bought 73.4 per cent stake in Hyderabad-based healthcare chain Global Hospitals, for Rs 1,284 crore.

"We look forward to big growth in India with Dr Rabindranath's Global Hospitals as a strategic partner," said the executive. Majority of the capacity addition will happen in North and North West India markets, he said.

Five years ago, Parkway had made headlines in India when Fortis Hospitals tried a hostile acquisition of Parkway, by buying out about 23 per cent stake from TPG Capital. Fortis promoter Malvinder Singh also became the chairman of Parkway. Khazana and other shareholders resisted the hostile acquisition. Later, Fortis sold off the stake and Malvinder vacated the Board.

IHH owns about 10.8 per cent stake in India's leading healthcare brand, Dr Prathap Reddy owned Apollo Enterprises Ltd. Parkway also has a 50:50 joint venture with Apollo subsidiary Apollo Gleneagles Hospitals, Kolkata.

Commenting on the scope of increasing stake in Apollo, Tan See Leng said: "if we get an opportunity to increase our stake in Apollo, we will definitely consider and are open to it. But that is fully subject to the support of the family (Prathap Reddy) and they must see us as a strategic and welcoming partner".

IHH is the second-largest listed healthcare operator in the world based on market capitalisation. Aside from Parkway Pantai, its core businesses are also operated through two other subsidiaries.