Fortis Healthcare has signed definitive agreements to acquire 100% of TMI Healthcare Pvt Ltd, operator of the 125-bed People Tree Hospital in Yeshwanthpur, Bengaluru, for ₹430 crore. The deal includes hospital infrastructure, land, and an adjacent parcel, with plans for an additional ₹410 crore investment over three years to expand capacity and enhance services.
Glimpse:
Announced on December 20, 2025, Fortis Healthcare’s acquisition of People Tree Hospital strengthens its Bengaluru cluster, where it already operates seven facilities with ~900 beds and potential to scale to over 1,500. The NABH-accredited multi-specialty hospital, generating ~₹74-102 crore in FY25 revenue, will see phased expansion to over 300 beds, new clinical programs like radiation oncology, and operational synergies. Executed via subsidiary International Hospital Limited, the deal awaits regulatory approvals and is expected to close by end-January 2026.
Fortis Healthcare Ltd., one of India’s leading hospital chains, has inked a major deal to acquire Bengaluru’s People Tree Hospital in Yeshwanthpur for a cumulative ₹430 crore, marking a strategic push to deepen its presence in the high-growth southern market.
The transaction involves a 100% acquisition of TMI Healthcare Pvt Ltd, the entity operating the 125-bed NABH-accredited multi-specialty facility, along with the hospital building, underlying land from promoters, and an adjacent ~0.8-acre parcel from a third party. Fortis’ wholly-owned subsidiary, International Hospital Limited (IHL), will execute the deal, which includes assuming existing debt and is subject to customary closing adjustments and regulatory approvals.
Beyond the acquisition cost, Fortis has committed an additional ₹410 crore investment over the next three years, taking total outlay to ~₹840 crore. This will fund bed expansion to over 300 beds (pending approvals), advanced medical equipment, and new clinical programs, including radiation oncology. The hospital currently specializes in cardiac sciences, orthopaedics, neurosciences, renal sciences, gastroenterology, and paediatrics, serving a dense residential and commercial catchment in northwest Bengaluru.
This move aligns perfectly with Fortis’ cluster-based growth strategy, leveraging synergies across its existing seven Bengaluru facilities (including O&M). The city portfolio currently stands at around 900 operational beds, with long-term potential exceeding 1,500 beds. People Tree’s FY25 revenues of approximately ₹74-102 crore offer scope for revenue enhancement, profitability improvement, and scaled clinical offerings under Fortis’ operational expertise.
The acquisition reflects ongoing consolidation in India’s hospital sector, driven by rising demand for quality tertiary care, urbanization, and insurance penetration. Fortis, partly backed by Malaysia’s IHH Healthcare, continues to expand its pan-India network of over 33 facilities and 5,700+ beds through targeted inorganic growth.
Alvarez & Marsal served as financial advisor to People Tree Hospitals. The deal is poised to complete by end-January 2026, positioning Fortis to capture greater market share in Bengaluru’s competitive healthcare landscape.
“The acquisition is a strategically important addition and will further strengthen our position in the Bengaluru market, where we already have a significant presence... with a potential to scale up to more than 1,500 beds from 900 beds currently.”
By
HB Team
