New Delhi: Global private equity firm KKR, which had notched a fivefold return in its exit from Max Healthcare, is doubling down on its hospital bets in South India. In its latest move, KKR-owned Kerala hospital chain Baby Memorial Hospital (BMH) has acquired a significant majority stake in Kozhikode-based Meitra Hospital, people familiar with the development said.
The deal, KKR’s third in the state, values Meitra Hospital at around ₹1,000-1,200 crore, they said.
BMH is also in early discussions to buy Star Care Hospital, another Kozhikode-based chain, the people said. This builds on its acquisition last year of the 350-bed Chazhikattu Multi Speciality Hospital at Thodupuzha, a town in central Kerala. The expansion underscores KKR’s strategy of consolidating quality hospital assets in the region.
Meitra Hospital, a 230-bed quaternary-care facility, is part of KEF Holdings, a Middle East-based investment group with interests in healthcare, infrastructure and education. KEF Holdings chairman Faizal Kottikollon said this strategic partnership with KKR’s healthcare platform will enable the hospital to expand its capabilities.
KKR and BMH spokespersons declined to comment. An email sent to Star Care did not elicit any responses till press time Sunday.
Founded by Kottikollon in 2012, Meitra Hospital offers advanced services in heart & vascular care, bone, joint & spine care, neurosciences, gastro sciences, nephro-urosciences, blood disorders, bone marrow transplant and cancer immunotherapy.
KKR had also explored acquiring Daya Hospital, a 500-bed chain in Thrissur, but those talks fell through after Daya recently raised ₹150 crore from Ascent Capital by diluting a 28% stake.
KKR re-entered India’s hospital sector last year, investing about $300 million (₹2,500 crore) to acquire a 70% controlling stake in BMH. KG Alexander, a noted cardiologist and healthcare entrepreneur, founded Baby Memorial Hospital in 1987. It has since grown into a healthcare institution with nearly 1,000 beds across three hospitals.
PE investment and buyouts in Kerala’s hospital sector have accelerated in recent years.
The state’s high literacy rates, advanced health indicators, potential in medical tourism and established private hospital ecosystem make it a magnet for institutional capital.
In 2023, Blackstone-owned Quality Care India Ltd, alongside TPG Growth, acquired a majority stake in Thiruvananthapuram’s KIMS Health Management at a valuation of about ₹3,500 crore.
