Adani Group enters healthcare, will set up medical and research facilities

Adani Group announced on Wednesday its foray into the healthcare space. In an exchange notification, the Rs 26,000 crore conglomerate said that it has incorporated a wholly owned subsidiary Adani Health Ventures (AHVL) for healthcare related services.

AHVL will carry out the business of healthcare-related activities like setting up of medical and diagnostic facilities, health technology-based facilities, and research centres, said the Ahmedabad-headquartered group.

“Adani Enterprises Limited has incorporated a WOS namely, Adani Health Ventures Limited, on 17th May 2022, with an initial authorized and paid-up share capital of Rs 1,00, 000/- each to carry on the business of healthcare related activities,” said an exchange filing.

“AHVL will commence its business operations “in due course”, it said.

Reports earlier said Gautam Adani, chairman of Adani Group, plan investments in healthcare, including acquiring hospital and diagnostic sector assets. Adani Group is also interested to enter the pharmacy space – through both the online and offline route, reports have claimed. Since 2014, Adani Group has made 30 acquisitions in different sectors.

Adani Group has been on an acquisition spree of late. It acquired Holcim’s assets Ambuja Cement and ACC recently. It is already a dominant player in infrastructure-related sectors like ports, airports, power among others.

According to the India Brand Equity Foundation (IBEF) the Indian healthcare sector is expected to record a three-fold rise, growing at a CAGR of 22 percent between 2016–2022 to reach $ 372 billion in 2022 from $ 110 billion in 2016.

By FY22, Indian healthcare infrastructure is expected to reach US$ 349.1 billion. In Economic Survey of 2022, India’s public expenditure on healthcare stood at 2.1% of GDP in 2021-22 against 1.8% in 2020-21 and 1.3% in 2019-20.

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