Reliance’s Deal With Apollo Fails To Take Off

EHM News Bureau - Mumbai

For months, the industry was abuzz with the news that Chennai-based Apollo Hospitals Enterprise Ltd, the consultancy arm of Apollo Hospitals, would do operations management for the upcoming Mumbai-based Kokilaben Dhirubhai Ambani Hospital (formerly Mandke Heart Hospital). The 700-bed hospital is managed by Reliance’s ADAG Group.

However, after several rounds of talks, the deal failed to materialise, say sources. The profit margin and income generation quoted by the Reliance group was too high and hence Apollo did not agree to sign the agreement, say sources. Officials at Apollo and Reliance confirmed that the deal is not happening anymore, but refused to reveal the reasons.