Adani Group, Apollo in discussions to acquire majority stake in Metropolis
Adani Group announced its debut into the healthcare industry on May 19
Considering Metropolis' market valuation, the transaction might be worth at least $1 billion
Adani Group dominates multiple industries, including cement, ports, airports, and power
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.
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.
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.
"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.
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.
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.