Apollo Hospitals Enterprise Limited (AHEL) has announced two significant strategic moves aimed at strengthening its position in the Indian healthcare market. The company's board has approved the acquisition of a 30.58% stake in its subsidiary, Apollo Health and Lifestyle Limited (AHLL), and plans to establish a state-of-the-art oncology facility in Gurugram.

Acquisition of AHLL Stake

AHEL will acquire 41,650,368 equity shares, representing a 30.58% stake in AHLL, from International Finance Corporation (IFC) and IFC EAF Apollo Investment Company. The transaction, valued at ₹12,540.68 million (₹1,254 crore), is priced at ₹301.09 per share. Upon completion, AHLL will become a 99.42% subsidiary of AHEL, with the remaining 0.58% held in the employee stock ownership plan (ESOP) pool.

Ms. Suneeta Reddy, Managing Director of AHEL, commented on the acquisition: "This acquisition is a decisive step that will allow for sharper capital allocation and a greater focus on select high-potential segments. With disciplined growth, improved profitability, and enhanced return on capital employed (ROCE), we see AHLL becoming a value-accretive driver in Apollo's integrated healthcare portfolio."

The acquisition is subject to approval from the Competition Commission of India and is expected to be completed by November 2025.

AHLL's Business Profile

AHLL, incorporated on November 10, 2000, is engaged in providing comprehensive, high-quality healthcare services. Its operations include specialty hospitals, clinics, diagnostic centers, sugar clinics, dental clinics, and dialysis centers. The company has shown consistent growth, with its consolidated turnover reaching ₹15,535 million for the financial year ended March 31, 2025.

New Oncology Facility in Gurugram

In a separate development, AHEL has approved the establishment of a comprehensive oncology facility in Gurugram. The project, which includes a Single Gantry Proton Proteus One System, will involve an investment of ₹5,730 million (₹573 crore).

Key details of the oncology facility:

• Project: Comprehensive Oncology center with Proteus One, single gantry Proton Beam Therapy system
• Investment: ₹5,730 million
• Financing: Internal Accruals
• Capacity: Additional 350 patients per annum
• Completion Target: By FY 2029

This facility will be Apollo's third Proton Therapy installation in India, following its flagship center in Chennai and an ongoing installation in Hyderabad. The Gurugram center will be part of the Phase 2 expansion of Apollo's upcoming 500-bed hospital in the city.

Dr. Prathap C Reddy, Founder-Chairman of AHEL, expressed his vision for the project: "At Apollo, we are driven by an unyielding passion for excellence in healthcare. Our commitment is to ensure that India remains at the forefront of medical innovation, providing patients with access to the world's most advanced treatments. The addition of next generation proton therapy to our Apollo Proton Cancer Centres further solidifies our position as a global leader in Proton Therapy."

Strategic Implications

These strategic moves align with Apollo's goal to double its oncology business to over ₹5,000 crore in 3-4 years. The company aims to achieve this through high-end personalized care, precision medicine, and deeper penetration into India's largest metros, along with expansion in other cities.

Ms. Sangita Reddy, Joint Managing Director of AHEL, highlighted the potential impact of the AHLL acquisition: "By bringing AHLL fully into Apollo's fold, we are sharpening the business focus across its four verticals—primary care & diagnostics, birthing & women's health, ambulatory care, and dialysis & dental. This sharper focus will enable AHLL to scale more effectively, innovate faster, and serve patients with care models that are more personalized, accessible, and future-ready."

As Apollo Hospitals continues to expand its healthcare portfolio, these strategic initiatives are expected to strengthen its market position and enhance its ability to provide comprehensive, high-quality healthcare services across India.

Apollo Hospitals Managing Director Suneeta Reddy has highlighted the potential of India's healthcare tourism sector to mitigate the effects of US tariffs on India. Speaking at the 52nd National Management Convention of AIMA, Reddy outlined a significant opportunity in the healthcare tourism market.

$100 Billion Opportunity in Healthcare Tourism

Reddy pointed to a substantial $100 billion opportunity in the healthcare tourism sector. She suggested that if India could capture 20% of this market, it could generate $20.00 billion by 2030, potentially offsetting losses incurred from US tariffs through medical value travel.

India's Competitive Edge in Healthcare

The Apollo Hospitals MD emphasized India's advantages in the global healthcare market:

• Premium healthcare infrastructure
• Clinical outcomes delivered at one-tenth of international costs
• Potential to attract patients from countries lacking advanced healthcare systems

Call for Better Connectivity

To fully leverage this opportunity, Reddy advocated for improved connectivity with countries that have less developed healthcare systems. This strategic move could position India as a preferred destination for medical tourism.

GST Reforms and Economic Impact

Reddy also touched upon several economic factors affecting the healthcare sector:

1. GST Input Cost Reforms: She called for reforms in GST input costs for the healthcare sector, similar to those implemented in the education sector.

2. Recent GST Rate Cuts: Reddy welcomed the recent reductions in GST rates, linking them to increased consumer spending on insurance, education, and health.

3. Personal Income Tax Reductions: She noted that cuts in personal income tax have contributed to higher consumer spending in key areas, including healthcare.

4. Infrastructure Cost Reduction: Reddy pointed out that GST cuts on construction materials such as bricks, granite, and marble would help reduce healthcare infrastructure costs.

These economic measures, according to Reddy, could further boost India's competitiveness in the global healthcare market and support the growth of medical tourism.

As India's healthcare sector continues to evolve, Apollo Hospitals' strategic vision aims to position the country as a global healthcare destination, potentially creating a new avenue for economic growth and offsetting challenges in other sectors.