Apollo Hospitals had agreed to buy Nova Speciality Hospitals for ~Rs 1.45 bn. The exact value of the transaction is subject to final deal closure. Nova aims to generate an annual business of Rs 5 bn in 5 years from short hospital stays and day surgery centres. Apollo Health and Lifestyle Ltd (AHLL) is already present in the secondary-care segment through its day surgery and cradle formats. This acquisition will enable AHLL to expand its footprint, given the immense potential and the need for quality healthcare delivery closer to the home.
Nova has 11 centres in 8 cities, while AHLL has close to 100 operational centres in India and West Asia. This acquisition will also mark the entry of Apollo in Mumbai, Jaipur and Kanpur. The deal follows Apollo’s September purchase of Hyderabad-based Hetero Med Solutions Ltd’s pharmacy business for Rs 1.5 bn. Later in that month, the company announced a partnership with Sanofi India Ltd to provide integrated diabetes care through Apollo Sugar Clinics.
Typically 60-70% of medical cases worldwide fall in the category of day surgeries, where the patient is discharged in less than 24 hours. Short-stay surgeries (usually for orthopaedic, urology or gynaecology-related diseases), which involve the patient staying at the hospital for a period of up to 3 days, form 20-30% of the cases. The acquisition would potentially free up beds and operating theatres in Apollo hospitals for more complex procedures, while surgeries requiring shorter stays could be handled at Nova. Apollo would acquire over 350 beds and 500 doctors as a result of the buyout of Nova Specialty Hospitals.
Services sector sees moderate expansion in December: HSBC
In November, the sector had recorded fastest pace of expansion in five months. The HSBC India Services Business Activity Index, which tracks changes in activity at Indian services companies on a month-by-month basis, stood at 51.1 in December — down from 52.6 in the previous month, indicating a moderate expansion in business activity in December.
Within the services sector activity, all but the financial intermediation sub-sector saw an expansion in order books. “In our view, growth in financial intermediation is key for funding a meaningful pick-up in economic growth,”
Government to rush to meet fiscal deficit goal:
The government will dash to meet fiscal deficit target of 4.1% of GDP. However, concerns remain over how target would be met, analysts said, adding it will likely be achieved. Notably, the fiscal deficit has already touched 99% of full-year target, latest data shows. The government is likely to cut spending as well as seek higher dividends from state companies