Coimbatore’s Srinivas Hospital nears sell-out
Action in the healthcare sector is turning to tier-II centres as they are proving to be the hotspots for investors. A Chennai-based entity is in the last lap of acquiring a 30-bed hospital at Sirumugai, 40 km away from Coimbatore. Due diligence process for the decade old Srinivas Hospital is on and the deal is expected to be finalised soon, sources close to the development told EThere on Tuesday.The suitor is said to be a first-generation entrepreneur having diverse interests in pharma and clinical research outsourcing businesses. Based on its monthly turnover of Rs 48 lakh, the hospital valuation is around Rs 2 crore, sources said. Srinivas Hospital, spread over 10,000 sq ft, is owned and managed by Dr Renuka Devi and her husband K Manoharan.When contacted, Manoharan confirmed the hospital is in talks with the Chennai-based entity for a buy-out. “We were the first to set up a hospital in this rural area, which did not have even basic medical infrastructure. People had to go to town for their medical needs. Our aim was to offer quality healthcare at a centralised location surrounded by 33 villages,” he said. Started with an initial capital of Rs 13 lakh borrowed from Canara Bank, it turned into a multi-speciality hospital with add-ons like scanning and other equipment. An additional sum of Rs 6.5 lakh was spent on medical equipment, he added. Manoharan said the hospital gets 50 to 70 patients every day.
