DLF, Fortis to invest Rs6,200 crore in hospitals JV

01 June 2007

Mumbai: Real estate giant DLF has entered into an agreement for floating a joint venture with Ranbaxy group company Fortis Healthcare to set up hospitals across the country with investments of about Rs6,200 crore.

Fortis will have a majority holding with 74 per cent stake wile DLF will hold the remaining stake in the proposed joint venture, reports quoting Fortis Healthcare managing director Shivinder Singh said.

The joint venture will set up a chain of 200-450 bed hospitals in 31 cities in India within three to five years, the sources said.

For Fortis, the move is a part of its strategy to become a pan-India player in the healthcare segment and resolve real estate problems for setting up new hospitals while the joint venture will mark DLF''s foray into the healthcare segment.

The planned investment of Rs6,200 crore would go toward meeting cost of land, construction and medical equipments, the sources said.

The JV plans to build hospitals in cities where DLF has a presence. Already DLF has a land reserve of 10,255 acres in 31 cities.

Fortis currently has a network of over ten hospitals mainly in North India, including the Escorts Heart Institute and Research Centre (EIHRC). It also has a heart command centre in Afghanistan.