June 29, 2011

GMR Group in JV talks with Apollo Hospitals & Mayo Clinic for $1 billion healthcare foray

Infrastructure conglomerate GMR Group is in talks with multiple potential partners including Prathap Reddy's Apollo Hospitals Group and US-based healthcare provider Mayo Clinic to set up a large hospital project in Hyderabad where it plans to invest close to $1 billion, two people said on condition of anonymity because the talks are private.

One of the people quoted above said that GMR plans to use the surplus land it owns around the Hyderabad airport to build what could be one of the largest hospitals in Asia and wants to rope in partners of international repute for the same.

The discussions between GMR, Apollo Hospitals and Mayo Clinic are at a preliminary stage and may not result in a deal, according to the person quoted above.

The three parties are in talks to form a joint venture company to execute the project.

A spokersperson for GMR said in response to queries from ET Now, "There is nothing definitive as yet. Yes, we are talking to at least a couple of leading hospitals for a possible tie-up for our Health Port in Hyderabad but no details are currently available for confirmation to you".

Suneeta Reddy, Executive Director, Finance, at Apollo Hospitals Enterprises Limited said in an emailed response to queries regarding the potential transaction, "At this time there are no facts to validate this information".

Mayo clinic did not respond to emailed queries.

Mayo Clinic is a not for profit organization that runs a number of clinics, hospitals and medical research facilities and schools in different parts of the USA. The group reported revenues of over $7.5 billion for the year 2009. Mayo Clinic reinvests all the profits it makes into the various medical facilities that it operates.

Large hospital chains such as Apollo Hospitals and Fortis Healthcare are looking at ways to tap the market for medical tourism in India, where world-class healthcare facilities and doctors are available at lower costs.

"GMR will also benefit from a project of this nature as it will complement its airports business if the hospital is able to attract a large number of overseas patients", one person familiar with the company's plans said.

Link: Original Article

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