Bengaluru: Healthcare major Fortis Healthcare on Friday announced that it has signed a definitive agreement to acquire the 125-bed People Tree Hospital in Bengaluru for Rs 430 crore, marking a significant expansion of its presence in the city’s fast-growing healthcare market. The acquisition underscores Fortis’ strategy of strengthening its footprint in key urban clusters through targeted investments and capacity expansion.

According to an official statement issued by Fortis, the acquisition will be executed through a 100 per cent purchase of People Tree Hospital’s holding company, TMI Healthcare Pvt Ltd. The transaction will be carried out by International Hospital Limited (IHL), a wholly owned subsidiary of Fortis Healthcare.

Strategic acquisition in Yeshwanthpur

The People Tree Hospital is located in Yeshwanthpur, one of Bengaluru’s rapidly developing zones with increasing demand for quality tertiary healthcare services. The hospital currently operates with a capacity of 125 beds and offers a range of medical and surgical services.

Fortis said the acquisition fits well with its cluster-based growth strategy, allowing the company to consolidate operations, optimise resources and enhance patient care delivery in Bengaluru. The deal is subject to customary regulatory approvals and closing conditions.

“This acquisition is in line with our vision to expand our footprint in focused clusters and enables us to leverage the benefits of scale and synergies,” said Ashutosh Raghuvanshi, Managing Director and Chief Executive Officer of Fortis Healthcare. He added that the transaction is a strategically important addition to the company’s existing portfolio in Bengaluru.

Additional Rs 410 crore investment planned

Beyond the acquisition cost, Fortis has committed to investing an additional Rs 410 crore over the next three years to upgrade and expand the People Tree Hospital facility. The planned investment will be directed towards increasing bed capacity, upgrading medical equipment and strengthening key clinical programmes.

Among the major focus areas identified is radiation oncology, which Fortis plans to develop as part of its comprehensive cancer care offering at the facility. The investment is also expected to enhance critical care services, advanced diagnostics and other super-speciality treatments.

“The additional capital expenditure will help us significantly enhance clinical depth and infrastructure, ensuring that the hospital meets Fortis’ standards of care and clinical excellence,” Raghuvanshi said.

Expansion potential to over 300 beds

The acquisition also includes an adjacent land parcel measuring 0.8 acres, which provides Fortis with substantial scope for future expansion. With this additional land, Fortis said the hospital’s bed strength can be scaled up to over 300 beds in the medium to long term.

This expansion potential is particularly significant in a city like Bengaluru, where demand for hospital beds continues to outpace supply due to rapid urbanisation, population growth and rising incidence of lifestyle-related diseases.

Healthcare industry experts note that land availability is a major constraint for hospital expansion in metropolitan cities, making acquisitions that include additional land parcels especially valuable.

Strengthening Fortis’ Bengaluru footprint

Fortis Healthcare already has a strong presence in Bengaluru, operating seven healthcare facilities across the city. With the acquisition of People Tree Hospital, the company aims to further consolidate its position as one of the leading private healthcare providers in the region.

Currently, Fortis operates around 900 beds in Bengaluru. According to Raghuvanshi, the company has the potential to scale up its capacity in the city to over 1,500 beds over time, through a combination of brownfield expansions and strategic acquisitions.

“Bengaluru continues to be a key market for us. The city has a mature healthcare ecosystem and a growing patient base, including patients from neighbouring states. This acquisition strengthens our ability to serve this demand,” he said.

Advisory and transaction details

For the transaction, global professional services firm Alvarez & Marsal acted as the financial advisor to People Tree Hospitals. Legal and regulatory clearances are expected to be completed in the coming months, following which Fortis will formally take over operations.

While Fortis did not disclose the timeline for the completion of the deal, industry sources indicated that the acquisition is expected to be finalised in the next financial year, subject to approvals.

Conclusion

The acquisition of People Tree Hospital for Rs 430 crore marks another major step in Fortis Healthcare’s expansion strategy, particularly in southern India. With an additional planned investment of Rs 410 crore and the potential to expand the facility to over 300 beds, the deal is expected to significantly strengthen Fortis’ Bengaluru portfolio. As competition intensifies in India’s private healthcare sector, such strategic acquisitions highlight the growing emphasis on scale, infrastructure and specialised care to meet rising patient demand.