DLF, Fortis JV to set up hospitals, invest Rs 62b

Ahead of its initial public offer, real estate giant DLF has entered into an agreement for floating a joint venture with Ranbaxy group company Fortis Healthcare to set up hospitals across the country with about Rs 6,200 crore (Rs 62 billion) of investments.

Fortis Healthcare Managing Director Shivinder Singh told PTI that Fortis will have a majority holding with 74 per cent stake and the rest will be with DLF in the proposed joint venture.

Industry sources said an agreement for the proposed JV has already been signed. The JV plans to set up a chain of 200-450 bed hospitals in 31

cities in India within three to five years, the sources added.

While the joint venture will mark DLF's foray into the healthcare segment, for Fortis the move is a part of its strategy to become a pan-India player in the healthcare segment and resolve real estate problems for setting up new hospitals.

The planned investment of Rs 6,200 crore would go toward meeting cost of land, construction and medical equipments, the sources said. The JV plans to build hospitals in cities where DLF has a presence. Already DLF has a land reserve of 10,255 acres in 31 cities.