Adani Group, Apollo in discussions to acquire majority stake in Metropolis

Adani Group and Apollo Hospitals Enterprise are considering offers for a controlling stake in the diagnostics chain Metropolis Healthcare, according to Mint.

Considering Metropolis’ market valuation and breadth of operations, the transaction might be worth at least $1 billion, reported Mint citing sources.

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The initiative is the next phase in the Adani Group’s foray into healthcare, according to the report, and the conglomerate has committed $4 billion to develop a presence in the field.

Metropolis is a diagnostics and pathology chain that was established in the 1980s with a single lab. It currently has a presence in 19 states, primarily in western and southern India.

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The Adani Group announced its debut into the healthcare industry on May 19, with the formation of a fully owned subsidiary for healthcare-related services.

According to an exchange filing, Adani Health Ventures (AHVL) would conduct healthcare-related operations such as the establishment of medical and diagnostic facilities.

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“Adani Enterprises Limited has incorporated a WOS namely, Adani Health Ventures Limited, on 17th May 2022, with an initial authorised and paid-up share capital of Rs 1,00,000 each to carry on the business of healthcare-related activities including, inter alia, setting up, running, administering medical and diagnostic facilities, health aids, health tech-based facilities, research centres and to do all other allied and incidental activities in this regard,” the filing said.

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The Adani Group has risen at a breakneck speed since 2014, acquiring over 30 companies in various verticals and businesses. It now dominates multiple industries, including cement, ports, airports, and power.

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Adani’s next target is the healthcare industry, which is projected to grow at an exponential rate in India. According to a recent report published by Niti Aayog, the government’s think-tank, the industry has been growing at a compound annual growth rate (CAGR) of roughly 22% since 2016. According to the report, at the current rate, it will reach $372 billion in 2022.