The joint venture was set up with an investment of about Rs 200 crore. The plan was to create 20,000 hospital beds in India.
The Kirloskar Group has sold its majority stake in Bengaluru-based Sakra Hospital to the two Japanese companies who were part of the joint venture, making it perhaps the first hospital in the country to be owned fully by foreign entities since India permitted 100% FDI in the sector in 2000.
Kirloskar started the hospital in 2013, partnering with Toyota Tsusho, the trading arm of Toyota Group, and Secom Medical System, the medical arm of Japanese security company Secom. It was the first hospital in India to be operated jointly by Japanese and Indian companies.
Toyota Tsusho owned 18%, Secom 32%, while Kirloskar owned the remaining 50%. Sakra’s former chairperson Geetanjali Kirloskar confirmed the move when contacted by TOI, saying that she and the two other directors, Vikram Kirloskar and Kailasam Jayavelu, who represented the Kirloskar Group, resigned from the board on Thursday. “My vision of running the hospital was diverging from the way Secom wanted to run it and they were keen to get more control of the management and administration,” Geetanjali Kirloskar said. She added that they did not make any profit from the stake sale.
Post the sale, Secom will own 60% and Toyota Tsusho the rest, Sakra managing director Toshimasa Yashima said, declining to comment further. Secom, which operates 5,500 hospital beds across 18 hospitals in Japan, has a market capitalization of about $20 billion.
The joint venture was set up with a business investment of about Rs 200 crore, including equity of Rs 120 crore and Rs 80 crore in debt. The plan was to create 20,000 hospital beds in India.
Geetanjali said the lack of clarity regarding the hospital’s vision could be the reason for the exodus of doctors and executives.