IHH Healthcare Bhd plans to significantly expand its presence in India, with a target of increasing its operational hospital beds from about 6,100 today to nearly 10,000 by 2031.
The company estimates that the expansion will require an investment of around US$250,000 per additional bed. Fortis Healthcare, IHH’s Indian subsidiary, is expected to fund most hospital expansions through internal cash generation. Debt may be used for acquisitions, while equity funding could be considered for larger deals.
Dr Ashutosh Raghuvanshi, managing director and CEO of Fortis Healthcare, said IHH remained committed to expanding in India because of the country’s strong healthcare growth prospects.
“We have strong support from IHH, which has already stated its intention to double down on the India opportunity, and since the company’s operations have already matured, further building this platform makes a lot of sense,” he said during a media briefing in New Delhi.
IHH has built a major private healthcare network in India through Fortis Healthcare and Gleneagles Healthcare India. The group currently operates 36 hospitals with around 6,100 beds across 12 states, including major markets such as Delhi, Mumbai, Bengaluru, Chennai, Punjab, Kolkata and Hyderabad.
Expansion and financial outlook
Fortis plans to add around 400 beds during the current year, with capital spending estimated at about 700 crore rupees, or roughly US$90 million.
The company has a debt-to-Ebitda ratio of 1.08 times, giving it room to raise additional debt for expansion. Equity funding could also be used if larger acquisitions require it.
Fortis currently spends about US$75 million annually on capital expenditure. The company may also pursue smaller or “creeping acquisitions” by buying shares in the secondary market.
Raghuvanshi expects Fortis’ Ebitda margin to improve by about 1.5 percentage points each year, rising from the current 21%-22% range to around 25% over the next few years.
However, margins may eventually settle at 25%-26% as newly added hospitals enter the portfolio and require time to reach maturity. Revenue is expected to increase by more than 15% a year.
International patients remain important
International patients are a significant part of Fortis’ oncology business in Gurugram, with overseas patients accounting for about 30% of the centre’s total patient base.
The West Asia conflict has affected patient flows from some markets, particularly Iraq and parts of Africa. Many African patients travel through the Middle East when seeking treatment in India.
Bangladesh remains another important source of medical tourists. Fortis is also looking more closely at Africa, where limited access to advanced healthcare and sensitivity to treatment costs could create new opportunities.
IHH group chief corporate officer Ashok Pandit said Türkiye and Europe currently contribute the largest share of the group’s first-quarter revenue, followed by Singapore, Malaysia and India.
India’s contribution is expected to take longer to reach the scale of the group’s other major markets. IHH owns its operations fully in Singapore and Malaysia and has a 90% stake in Türkiye.
IHH acquired a controlling interest in Fortis in 2018 and currently holds a 31.1% stake in the Indian healthcare company.
Focus on wider healthcare services
IHH also expects its Malaysian operations to deliver double-digit growth again this year. The business recorded growth of around 10%-12% in each of 2023, 2024 and 2025. Türkiye is also expected to deliver stronger growth after a solid start to the year.
Beyond conventional hospitals, IHH plans to increase its focus on ambulatory care centres, particularly in Malaysia. These facilities can bring treatment closer to patients, lower costs and complement hospital-based services.
The group operates 18 hospitals in Malaysia, with about 3,600 beds. Its brands include Gleneagles, Pantai, Prince Court, Island Hospital and Timberland Medical Centre, serving hundreds of thousands of patients annually.
IHH Healthcare is a publicly listed multinational healthcare group. Japan’s Mitsui & Co is its largest controlling shareholder, while Malaysia’s sovereign wealth fund Khazanah Nasional Bhd is another major shareholder.
IHH’s planned expansion reflects its long-term confidence in India’s healthcare market. By increasing hospital capacity, pursuing acquisitions and expanding into ambulatory care, the group aims to strengthen its regional healthcare platform while benefiting from rising demand for quality medical services.