The hurried footsteps of hospital managers have now become white noise at Radiant Life Care’s BLK hospital. Senior managers with Max Healthcare’s chain of 14 hospitals have been thronging these corridors for the last few months. They’ve been finalising the details of Radiant, with two hospitals—650 beds at BLK hospital in Delhi and 350 beds at Nanavati hospital in Mumbai—taking over Max’s 14. 

Radiant acquired 49.7% of Max, one of the largest hospital chains in the country, in June. It may not be a majority stake, but the managers know that a foundational shift in Max’s management is afoot.

Max’s revenue for the year ended March 2018 at Rs 2,787 crore ($394 million) is over 40X that of Radiant’s Rs 67 crore ($9.5 million) in the same period. It’s an upheaval at Max. The managers are nervous about the impact of the merger on their jobs. 

It sounds a bit like David taking over Goliath. But there’s a third angle here.

The final decision over Max’s operations now rests with Abhay Soi, founder, chairman and managing director of Radiant, and the new chairman of Max. But Soi’s involvement goes beyond Radiant’s stake in Max. 

New York-based private equity KKR & Co acquired 49% of Radiant for approximately $200 million two years ago. Radiant has now funded the Max acquisition with an investment from KKR’s Asian Fund III. What gives Soi final authority over day-to-day operations at Max is the little fact that KKR has also bought a 4.99% stake in the merged entity, which is valued at about $1.03 billion.

The KKR empire grows

The fact that KKR used Radiant to buy Max and did not do it on its own shows that it has realised that Indian healthcare needs experience and expertise. Radiant represented KKR in bidding for Fortis in the past and there is an unsaid agreement that KKR will acquire more hospitals and grow via Radiant in the future, said a senior executive with Radiant. It’s considering buying a stake in the NCR-based Medanta hospital

Before the year ends, promoters of Max Healthcare will be left clutching about 1% stake, a senior executive at Radiant confirmed, requesting anonymity.

In December last year, Max had announced that KKR-Radiant together would hold 75.1% stake after all the approvals for the merger come through. While KKR and Soi would own 51.9% and 23.2%, respectively, the promoters of Max Healthcare would go down from 12% to 7%. The terms of the deal have evolved since then, resulting in the 1% inevitability, said the executive.

The reason? Max’ promoter, Analjit Singh, is in debt, despite his family’s legacy in the Indian pharma business.

AUTHOR

Ruhi Kandhari

Ruhi writes on the impact of healthcare policies, trends in the healthcare sector and developments on the implementation of Electronic Health Records in India. She has an M. Sc. in Development Studies from the London School of Economics.

View Full Profile

Subscribe to read this story

The Ken is the only business subscription you need. Questions?

 

Premium

  • 5 original and reported longform business stories every week
  • Access to ONLY India edition
  • Close to 250 exclusive stories every year
  • Full access to over 5 years of paywalled stories
  • Pick up to 5 premium subscriber newsletters
  • 4 original and reported longform business stories each week
  • Access to ONLY Southeast Asia edition
  • Close to 200 exclusive stories every year
  • Full access to all paywalled stories since March 2020
  • Pick up to 5 premium subscriber newsletters

Rs. 2,750 /year

$ 120 /year

India Edition
Subscribe Subscribe
Most Asked For

Borderless

  • 8 original and reported longform business stories each week
  • Access to both India and Southeast Asia editions
  • Close to 400 exclusive stories every year
  • Full access to over 5 years of paywalled stories across India and Southeast Asia
  • Unlimited access to all premium subscriber newsletters
  • Visual Stories

Rs. 4,200 /year

Subscribe
 

Echelon

  • 8 original and reported longform business stories each week
  • Access to both India and Southeast Asia editions
  • Close to 400 exclusive stories every year
  • Full access to over 5 years of paywalled stories across India and Southeast Asia
  • Unlimited access to all premium subscriber newsletters
  • Visual Stories
  • Bonus annual gift subscription
  • Priority access to all new products and features

Rs. 8,474 /year

Subscribe
Or

Questions?

What kind of subscription plans do you offer?

We have three types of subscriptions
- Premium which gives you access to either the India or the Southeast Asia edition.
- Borderless which gives you complete access to The Ken across both editions
- Echelon which gives you complete access to The Ken across both editions along with a bonus gift subscription

What do I get if I subscribe?

The Premium edition gives you access to stories in that edition along with any five subscriber-only newsletters of your choice.

The Borderless and Echelon subscription gives you complete access to The Ken across editions and unlimited access to as many newsletters as you like.

What topics do you usually write about?

We publish sharp, original and reported stories on technology, business and healthcare. Our stories are forward-looking, analytical and directional — supported by data, visualisations and infographics. We use language and narrative that is accessible to even lay readers. And we optimise for quality over quantity, every single time.

Our specialised subscriber-only newsletters are written by our expert, award-winning journalists and cover a range of topics across finance, retail, clean energy, cryptocurrency, ed-tech and many more.

How many newsletters do you have?

We are constantly adding specialised subscriber-only newsletters all the time. All of these are written by our team of award-winning journalists on a specialised topic.

You can see the list of newsletters that we publish over here.

Does a Premium subscription to your Indian edition get me access to the Southeast Asia edition? Or vice-versa?

Afraid not. Each edition is separate with its own subscription plan. The India edition publishes stories focused on India. The Southeast Asia edition is focused on Southeast Asia. We may occasionally cross-publish stories from one edition to the other.

We recommend the Borderless or the Echelon Plan which will give you access to stories across both editions.

Do you have a mobile app?

Yes! We have a top-rated mobile app on both iOS and Android which allows you to read on-the-go and has some amazing features like the ability to bookmark stories, save on your device, dark mode, and much more. It’s really the best way to read The Ken.

Is there a free trial?

You can sign up for a free account to experience The Ken and understand our products better. We’ll send you some free stories and newsletters occasionally, and you can access our archive of previously published free stories. You can stay on the free account as long as you’d like.

The vast majority of our stories, articles and newsletters can be accessed only by a paid subscription.

Do you offer any discounts?

Sorry, no. Our journalism is funded completely by our subscribers. We believe that quality journalism comes at a price, and readers trust and pay us so that we can remain independent.

Do you offer refunds?

No. We allow you to sample our journalism for free before signing up, and after you do, we stand by its quality. But we do not offer refunds.

I am facing some trouble purchasing a subscription. What can I do?

Just write to us at [email protected] with details. We’ll help you out.

I have a few more questions. How can I reach out to you?

Sure. Just email us at [email protected] or follow us on Twitter.