Winds of Change

Ramesh Krishnan, CEO, India operations, Parkway Pantai, on varied strategies that led to re-positioning of Global Hospitals and Continental Hospitals.

- Rita Dutta

Parkway Pantai Limited, a subsidiary of Malaysia’s IHH Berhad Group, has captured a significant pie of the India healthcare market with two back-to back acquisitions in 2015. Asia’s largest healthcare player, Parkway, scooped up 51% stake in Hyderabad’s Continental Hospitals in March, and followed it up with 74% stake in Hyderabad’s Global Hospitals.

The group’s other investments through 50% JV route include the under construction Parkway Khubchandani Hospital in Mumbai, Apollo Gleneagles in Kolkata as well as a PET Centre in Hyderabad in association with Apollo. Parkway also has its indirect presence in India through IHH, which holds 10.85% stake in Apollo Hospitals Enterprises Limited.

Parkway’s current growth strategy in India is revolved around realigning Global and Continental Hospitals as per global standards as well as fortifying the group’s presence in cities where it has its footprint.

Parkway’s expansion plans in India gained momentum, after you joined the group as the head of Middle East and South Asia region. What growth strategy you had in mind, when Parkway set out to acquire projects in India? 

Post the IPO, around five years back, Parkway chalked out an array of imperatives that defined its roadmap for India. The Indian healthcare market was poised for rapid growth and Parkway zeroed in on India as a core market in Asia. 

The first imperative was not to tread on the Greenfield path. This was based on our experience of inordinate delays and setbacks that impair Greenfield projects in India. The decision was also buoyed by the fact that acquisitions would help us hit the market faster and would be a better vehicle for growth. And, in acquisitions, we decided to forge deals with hold majority stake.