21 January 2008: Emaar MGF and Fortis Healthcare plan to form a joint venture to set up 25 hospitals across major cities in India, with an investment of Rs 1,200 crore. Main aim of this healthcare plan is to provide the features of “one-stop shop”. That’s why they have decided that hospitals will provide upper secondary and lower tertiary levels of treatment. Each hospital will have 75 to 125 beds.
Emaar MGF and Fortis will sign a memorandum of understanding (MoU) for the 50:50 joint venture. This joint venture will be an exclusive arrangement mandated to set up the hospitals in ten years from the time the first site is transferred or acquired.
Mr. Shivinder Mohan Singh, CEO and managing director, Fortis Healthcare said, “We have an MoU in place and details of the project are being worked out. I cannot confirm further details since we have not yet signed any joint venture agreement”. Emaar MGF executives declined to comment on the new venture, citing a forthcoming initial public offer that is expected to rise over Rs. 7,000 crore to fund its projects.
Fortis Healthcare is managing 12 corporate hospitals in north India. Moreover, various pathology laboratories (SRL Ranbaxy) and various healthcare stores (Fortis Heathworld) are also manages by Fortis Healthcare. Fortis has planned to expand its hospital network to 40 and for this they are investing Rs 1000-1500 crore.
Emaar MGF is a joint venture between one of the world’s leading real estate companies, Emaar Properties PJSC of Dubai, and MGF Development Limited of India. It is setting up Rs 16,000 integrated township at Mohali hills near Chandigarh.
Emaar MGF is also preparing large scale real estate projects in residential, hospitality, commercial and retail, education, healthcare and IT parks and Special Economic Zones (SEZs) in India. It has already got approval for nine SEZs in various states and plans to add about 25,000 hotel rooms in India in coming decade