The diversified Hinduja Group is actively scouting for a partner to speed up the setting up of its first hospital in Chennai. One of the foreign collaborators whose name is doing the rounds is that of Massachusetts General Hospital (MGH) of the US.
If the alliance materialises, it would mark the entry of the first US hospital major into the healthcare mecca of the country.
On Tuesday, on the sidelines of the 60th annual general meeting of Ashok Leyland held in Chennai, company co-chairman Dheeraj Hinduja said as originally committed, the project is a certainty, but it is still working on its hospital blueprint. The group is considering a collaborative partner to move ahead in this direction. The global slowdown has impacted the plans to some extent, he told ET.
Asked whether it would be a 500-bed hospital project, he said the bed capacity has not yet been finalised. Initially, the group had outlined its intention to set up a hospital in the metro with a capacity of 250-300 beds to fit into its overall plan of having 5,000 beds across the country.
The Hinduja Group has a pact with Limitless, a global integrated real estate development arm of Dubai World, a Dubai government-owned entity. The joint venture envisages a spectrum of services, including medicare services and infrastructure in India and in places like Dubai.
During an earlier interaction with ET, Ashok Hinduja had said: “Limitless and ourselves have entered into a joint venture. In the 51:49 JV, we will have a 51% stake. The project will not only have infrastructure related to hospitals, but those related to real estate also.”
Along with its partner, it had proposed to set up a hospital chain across the country. After registering its presence in metros, the group had plans to enter tier-II towns.
Concurring that the group is actively evaluating several alliance possibilities to finalise its hospital project, Ashok Leyland MD R Seshasayee said it is looking for land in the city to tie up the venture. However, he did not specify any definitive timeline to firm up the project.
A dealmaker in the healthcare space, on condition of anonymity, said the Hinduja Group is believed to be in discussions with MGH, though a deal has not yet been sealed.
But since land is a key factor on which the hospital project hinges, there is a possibility that the London-based Hinduja Group could also forge a partnership with a local player, which has land bank at its disposal, an industry tracker said. On the progress of the group’s branding initiative, Dheeraj Hinduja said this matter would be taken up only in April next year. A dedicated agency is handling the matter.
It may be recalled that the group has already started re-branding some of its companies — Ennore Foundries, for instance, is now Hinduja Foundries — to identify itself with the Hinduja brand. One of the group’s new entities floated has been christened Hinduja Leyland Finance. With an initial capital of Rs 100 crore, this company has been launched to give impetus to dealer financing.
Source: Economic Times