Manipal Hospitals Seals ₹6,400 Crore Deal to Acquire Sahyadri Hospitals from Canadian Pension Fund OTPP

Bengaluru's leading healthcare provider, Manipal Hospitals, announced its acquisition of Maharashtra's prominent Sahyadri Hospitals from Canada's Ontario Teachers' Pension Plan (OTPP) in a transaction valued between ₹6,200 and ₹6,400 crore. The deal, which is subject to regulatory approval, represents one of the most significant healthcare sector consolidations witnessed in India this year.

Strategic Expansion Strengthens Western India Healthcare Network

Upon the completion of regulatory formalities, the acquisition will incorporate Sahyadri's network of 11 hospitals—strategically positioned across Pune, Nashik, Ahilyanagar, and Karad—into Manipal's expanding portfolio. This integration will elevate Manipal's total bed capacity to approximately 12,000 beds across 49 facilities nationwide, establishing the chain as one of India's largest hospital networks.

The transaction marks a significant return for OTPP, which had initially acquired Sahyadri in 2022. Industry sources indicated that over the three-year ownership period, OTPP made substantial investments in infrastructure expansion, clinical leadership enhancement, and network extension into tier-two cities throughout Maharashtra. With this divestment, OTPP is positioned to achieve returns exceeding 2.5 times its original investment.

Transaction Details and Market Impact

The deal represents several strategic advantages for Manipal Hospitals. The transaction size, estimated between ₹6,200-₹6,400 crore, marks one of 2025's largest healthcare sector acquisitions. The addition of Sahyadri's 1,400+ beds and 11 hospitals significantly boosts Manipal's footprint, particularly strengthening its presence in western India's lucrative healthcare market.

Manipal's timing appears strategic, as the company, backed by prominent investors including Temasek and TPG, prepares for an anticipated initial public offering. This acquisition strengthens its market position considerably ahead of the planned listing. In June 2025, KKR provided $600 million in debt financing to support Manipal's growth initiatives and deal funding capabilities.

The competitive bidding process for Sahyadri reportedly included major industry players such as Blackstone, Fortis, and EQT, highlighting the asset's attractiveness in India's rapidly growing healthcare investment market.

Leadership Perspectives on Strategic Value

Ranjan Pai, Chairman of Manipal Education & Medical Group, characterized the acquisition as a transformative strategic move that would position Manipal Hospitals as the definitive healthcare leader in western India. He emphasized that the integration would enable the delivery of world-class medical care to a significantly broader demographic across the region.

A senior executive from OTPP highlighted the substantial growth and clinical enhancements implemented during their stewardship of Sahyadri. The executive expressed confidence that Sahyadri would continue to flourish and expand under Manipal's experienced management and strategic vision.

Industry Consolidation Trend Accelerates

This landmark transaction underscores the accelerating consolidation trend within India's healthcare sector and reflects growing institutional investor confidence in the country's medical infrastructure development. As private capital continues flowing into healthcare and hospital chains scale rapidly, sector dynamics are shifting decisively toward larger, integrated hospital networks offering comprehensive clinical services.

The deal also highlights the broader trend of significant private equity investments flowing into India's healthcare and related infrastructure sectors, as institutional investors recognize the long-term growth potential of the country's expanding healthcare needs.

Industry analysts suggest that this consolidation pattern will likely continue as healthcare providers seek to achieve economies of scale, enhance service offerings, and expand geographic reach to serve India's growing middle-class population and their increasing healthcare demands.