In a significant move within India’s healthcare sector, global investment firm KKR has signed definitive agreements to acquire a controlling stake in Healthcare Global Enterprises (HCG) from CVC Asia V. This acquisition, valued at $400 million (approximately Rs 3,465 crore), will see KKR become the largest shareholder in HCG, assuming sole control of its operations.
Dr. BS Ajaikumar, Founder of HCG, will transition into the role of Non-Executive Chairman, focusing on clinical excellence, academic initiatives, and research and development. KKR will acquire up to 54% of equity in HCG at Rs 445 per share, followed by an open offer to public shareholders under the Securities and Exchange Board of India’s (SEBI) regulations. Upon completion, KKR’s stake is expected to range between 54% and 77%.
A Strategic Investment in Healthcare
Founded in 1989, HCG is one of India’s largest oncology hospital chains, operating 25 medical care centers across 19 cities. The organization boasts best-in-class infrastructure, including 2,500 beds, nearly 100 operating theaters, and 40 linear accelerator machines (LINACs). The Karnataka cluster is HCG’s largest, followed by Gujarat and Maharashtra, with a growing presence in Africa.
Akshay Tanna, Partner and Head of India Private Equity at KKR, expressed enthusiasm about the acquisition, stating, “HCG is a pioneer in cancer care in India and has established itself as an important healthcare provider in the country for the past three decades. As healthcare continues to be a thematic focus for KKR in India, our investment in HCG will support the development of medical infrastructure and the delivery of critical oncology services and care to more patients in the country. We look forward to leveraging KKR’s global healthcare expertise to strengthen HCG’s offerings and working with Dr. BS Ajaikumar to further enhance HCG’s clinical excellence.”
Dr. BS Ajaikumar welcomed the transition, stating, “I want to thank CVC for their support through the years, helping the management to put HCG in the strong position it is in today. I am delighted to welcome KKR, with their investment and operational expertise in healthcare in India and globally, as a majority shareholder in HCG. Patient well-being and outcomes will always be a top priority for us at HCG, and in my new role as Non-Executive Chairman, I will focus on clinical aspects involving a multi-disciplinary approach to cancer care, research, and development.”
Siddharth Patel, Managing Partner at CVC, reflected on their role in HCG’s growth, stating, “We are proud to have supported HCG’s transformation at a critical juncture in time to build it into one of India’s leading healthcare organizations and the delivery of high-quality care to many patients over the years.” Amit Soni, Partner at CVC, added, “Our partnership with Dr. Ajaikumar and the management team is a testimony to the ability to combine clinical and professional acumen to increase the reach of cancer care in India.”
KKR’s Continued Commitment to Indian Healthcare
KKR’s investment in HCG aligns with its broader healthcare strategy in India. The firm has previously invested in Baby Memorial Hospital, Healthium (a medical devices company), Infinx (a tech-enabled healthcare revenue solutions provider), Max Healthcare, JB Pharmaceuticals, and Gland Pharma.
The transaction is expected to close by the third quarter of 2025, pending customary closing conditions and regulatory approvals.
The Rising Cancer Burden in India
India is witnessing a concerning increase in cancer cases, with reports labelling it the “cancer capital of the world.” The Apollo Hospital’s 2024 Health of Nation report highlights a surge in non-communicable diseases (NCDs), including cancer, diabetes, hypertension, cardiovascular diseases, and mental health disorders. Some key findings include:
- A rise in cancer diagnoses at younger ages, with 30% of colon cancer patients at Apollo below 50 years old.
- Breast, cervix, and ovary cancers being the most common among women, while lung, mouth, and prostate cancers dominate among men.
- Low cancer screening rates, with only 1.9% of Indian women undergoing breast cancer screening.
- A doubling of obesity rates from 9% in 2016 to 20% in 2023.
- Hypertension incidence rising from 9% in 2016 to 13% in 2023.
- A significant portion of the population struggling with diabetes, pre-diabetes, and sleep apnea.
- Rising mental health concerns, with 1 in 5 young adults experiencing depression and 80% of adults reporting high stress levels.
The Indian Council of Medical Research (ICMR) projects a 12.8% rise in cancer cases by 2025 compared to 2020, with a total of 1.46 million new cases reported in 2022. According to the Global Cancer Observatory (GLOBOCAN), India ranked third globally in cancer incidence in 2020, and projections indicate a 57.5% increase in cases by 2040.
Addressing India’s Cancer Crisis
With the growing cancer burden, India must take proactive measures to mitigate the crisis. Key strategies include:
- Promoting Healthier Lifestyles: With 70% of cancer cases linked to lifestyle choices, encouraging balanced diets and physical activity is critical.
- Enhancing Social Equity: Ensuring equitable access to healthcare across all regions and socioeconomic groups is essential.
- Early Detection: Expanding screening programs can improve survival rates. Recommended screenings include mammograms for breast cancer (ages 40-74), HPV and Pap tests for cervical cancer (ages 21-65), colonoscopies for colorectal cancer (ages 45-75), and low-dose CT scans for lung cancer in high-risk individuals (ages 50-80).
- Improving Treatment and Palliative Care: Ensuring high-quality, affordable, and accessible treatment is necessary to support patients at all stages of cancer.
- Raising Awareness: Public education campaigns can promote cancer prevention and encourage early screenings.
A Call to Action
The alarming rise in cancer cases in India requires immediate intervention. With efforts from healthcare organizations like HCG and investments from firms like KKR, India has an opportunity to strengthen its healthcare infrastructure. However, addressing the root causes of the cancer epidemic requires a multi-faceted approach involving government policies, healthcare advancements, and community engagement.
It’s time to shift the narrative from being the “cancer capital” to striving for a “cancer-free” India. By taking decisive action, India can ensure a healthier future for all its citizens.
