Fortis in JV with DLF to set up 15 hospitals in five years

By Our Corporate Bureau | 06 Sep 2007

Mumbai: Ranbaxy Promotor Group company Fortis Healthcare has entered into an agreement with real estate giant DLF to set up 15 hospitals in the next five years, involving an investment of Rs 3,000 crore.

The two have signed an 'alliance agreement' to develop about 15 'centre of excellence' hospitals in townships being developed by DLF in the first five years, industry sources said.

Under the joint venture agreement, the healthcare firm may hold majority stake of 74 per cent with the real estate major taking up 26 per cent.

The hospitals are likely to be of 250-400 bed capacity with a minimum built up area of 20,000 sq mt, sources said.

The two companies are also exploring other options beside equity partnerships like buy-outs and management contract, the sources added.

Fortis, which currently has 12 running hospitals, is in the process of setting up more. The company recently announced its plan to invest Rs 1,800 crore for a pan-India expansion.