Apollo Hospitals Enterprise Limited (AHEL), India’s leading private healthcare provider, has initiated a strategic divestment of its maternity and infant care division, Apollo Cradle and Children’s Hospital (ACCHL). The company has engaged Allegro Capital to oversee the sale process, aiming to streamline operations and concentrate on its core healthcare services.

ACCHL operates 13 hospitals across major Indian cities, including Delhi, Bengaluru, Chennai, Hyderabad, Amritsar, Gurugram, Noida, and Ghaziabad, with a total capacity of approximately 363 beds. The division reported a net loss of ₹17 lakh for the fiscal year ending March 2024.

The divestment aligns with Apollo Hospitals’ broader strategy to optimize its portfolio and focus on high-growth areas within its healthcare ecosystem. Recent initiatives include a ₹103.2 crore investment in its subsidiary, Apollo Health and Lifestyle Limited (AHLL), to bolster business operations, working capital, and expansion efforts.

The Indian mother and child care market, valued at approximately ₹30,000 crore annually, is experiencing a compound annual growth rate of 15%. This sector is currently dominated by private hospital chains such as Rainbow Children’s Medicare, Motherhood Hospitals, and Cloudnine Hospitals.

Apollo Hospitals’ decision to divest ACCHL is a strategic move to reallocate resources and strengthen its position in core healthcare segments. The company remains committed to delivering high-quality healthcare services and exploring opportunities for growth and innovation in the sector.