Fortis Healthcare has agreed to acquire People Tree Hospital in Yeshwantpur, Bengaluru, for 4.3 billion rupees ($48.01 million), tightening its grip on one of India’s fastest-growing and most competitive private healthcare markets as consolidation accelerates across the sector.
The acquisition will be executed through Fortis’ wholly owned subsidiary, International Hospital, which will take over 100% of TMI Healthcare, the operating entity behind People Tree Hospital. Once completed, the transaction will give Fortis full ownership and operational control of the Bengaluru-based facility, allowing it to integrate the hospital into its existing network and clinical systems.
In addition to the purchase consideration, Fortis said it plans to invest about 4.1 billion rupees over the next three years into the hospital. The additional capital is expected to be deployed toward expanding bed capacity, upgrading medical equipment, strengthening critical care infrastructure, and introducing new clinical specialties. The company said these investments are aimed at boosting both revenue and profitability while aligning the facility with Fortis’ broader growth strategy.
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The deal is seen as part of Fortis’ focus on Bengaluru and South India more broadly, regions that have emerged as key growth engines for India’s private healthcare industry. Bengaluru, in particular, has seen rising demand for tertiary and quaternary care, driven by rapid urbanization, higher health insurance penetration, a large working population, and steady inflows of medical tourists. Yeshwantpur, where People Tree Hospital is located, has become a strategic healthcare hub due to its proximity to industrial zones, residential developments, and transport links.
Fortis said the acquisition strengthens its existing operations and provides an opportunity to scale faster than a greenfield project would allow. The company can accelerate capacity utilization and shorten the path to profitability by acquiring an operational hospital with an established patient base.
Fortis, which is partly owned by Malaysia’s IHH Healthcare, currently operates 33 healthcare facilities with more than 5,700 beds across 11 Indian states, according to its website. Over the past few years, the hospital operator has increasingly favored targeted acquisitions and brownfield expansions as it seeks to deepen its presence in large metropolitan areas.
Chief executive Ashutosh Raghuvanshi told Reuters earlier that Fortis plans to invest about 7 billion rupees over the next four years to expand hospital capacity across Bengaluru, Mumbai, the National Capital Region, and Punjab. The People Tree transaction effectively advances that plan in Bengaluru, reinforcing the city’s role as a central pillar of Fortis’ expansion strategy.
The acquisition comes amid a broader wave of consolidation in India’s private healthcare sector, as large hospital chains seek scale to manage rising costs, attract specialist talent, improve bargaining power with insurers, and spread investments in advanced medical technology across larger networks. Industry executives have said that well-capitalized players are increasingly looking to acquire mid-sized hospitals in urban centers rather than build new facilities from the ground up.
The People Tree deal not only adds to its footprint in South India but also signals confidence in the sustained demand for private healthcare services in India’s major cities. With additional investments planned and a pipeline of expansion projects underway, the company is positioning itself to capture growth in a market where quality care, capacity, and scale are becoming decisive competitive advantages.
