Max Healthcare boosts growth with ₹3,000 crore expansion, continues to eye strategic acquisitions across India

Max Healthcare, Chairman and Managing Director, Abhay Soi

Max Healthcare Institute – which runs the ‘Max’ hospital chain pan-India – is expected to complete the first round of ₹3,000 crore organic expansion as it looks at a 30 per cent capacity addition by the end of this year, even as it explores acquisitions as a part of its growth strategy, its Chairman and Managing Director, Abhay Soi, said.

With three more facilities coming up – one each in Mumbai (Nanavati), Mohali and New Delhi (Saket) – apart from the just inaugurated 300-bed facility in Dwarka (Delhi) – around 1,300 – 1,500 additional capacities are expected to be added.

“Investments are underway…. around ₹3,000 crore will be made towards these new capacities. These would be through internal resource generation only,” he told businessline post inauguration of the super-speciality hospital at Dwarka on the outskirts of Delhi.

Even as the company looks at organic expansions, it does not have any immediate fund raise plans.

Max continues to see a 20 – 25 per cent y-o-y rise in revenue from international patients. International patients account for 10 per cent of its revenue. But there are no plans to venture overseas.

“We cater to patients from 182-odd countries. And these are mostly tapped through our medical tourism offices. There are no immediate plans for setting up facilities overseas,” Soi said.

Acquisitions

Inorganic expansion through acquisitions continue to be “under-consideration”.

“We remain open to acquisitions; looking out for more,” he said, adding the focus continues to be on “expanding only in India”.

In FY25, it announced three such takeovers. Two of its acquired hospitals are now rebranded as Max Super Speciality Hospital Nagpur and Max Super Speciality Hospital Lucknow. These acquisitions included 500 beds. It also acquired Jaypee Healthcare, a company with a 500-bed facility in Noida.

According to market research firm, Tracxn, Max Healthcare has completed six acquisitions with an average acquisition of $80 million (₹700 crore).

Soi had previously said, it does not matter whether the acquiring venture is profitable or not. But the target would be to ensure that there be a return on capital employed (ROCE) of 20-25 per cent within a time frame of 4-5 years.

“If talks materialise, there could probably be a similar number of acquisitions as last year,” he said.  

Published on April 29, 2025