-By ArdorComm News Network
August 9, 2024
Bajaj Group is reportedly planning to enter the healthcare sector by establishing a chain of hospitals, with the venture likely to be led by Nirav Bajaj, who currently oversees corporate strategy at Mukand. However, the investment plans are not yet finalized.
The hospital sector in India is experiencing growth, with major private hospital chains announcing expansion plans for the financial year 2024-25 (FY25). This comes after reporting an increase in average revenue per occupied bed (ARPOB) per day in FY24, reflecting rising demand for healthcare services.
India faces significant challenges in healthcare coverage, with only 5 beds and 8.6 doctors per 10,000 people, according to OECD data—one of the lowest ratios globally. As life expectancy in India is expected to surpass 70 years by 2031, and with the aging population projected to reach 13% by the same year, the demand for healthcare services is set to grow. Additionally, the rise in non-communicable diseases, especially cardiac ailments, driven by lifestyle changes, further underscores the need for expanded healthcare infrastructure.
This venture could mark the next significant move for the Bajaj Group, a 96-year-old conglomerate founded by Jamnalal Bajaj. Niraj Bajaj, Chairman of Bajaj Auto and Mukand, may be steering this new diversification. Meanwhile, Rajiv Bajaj’s son, Rishab, has also joined Bajaj Auto as a divisional manager focusing on electric vehicle product strategy.
The new healthcare venture has already set up an office in Lower Parel, Mumbai. However, it remains unclear whether the investment will come from the Bajaj family’s office or the Group companies, which include Bajaj Holdings and Investments, Bajaj Auto, Bajaj Finserv, Mukand Industries, Bajaj Electricals, and Hercules Hoist.
The Bajaj Group operates through a family council, which was formed three years ago and includes members such as Shekhar, Madhur, Niraj, Rajiv, and Sanjiv Bajaj. They meet regularly to discuss business and family matters.
In March, the Bajaj Group committed ₹5,000 crore to social impact initiatives over five years, focusing on skill development under its “Bajaj Beyond” program. This initiative aims to benefit over 20 million youth by providing employment and entrepreneurial opportunities.
In the last decade, the Bajaj Group has contributed nearly ₹4,000 crore towards various CSR initiatives, primarily in education, health, livelihood, and water conservation.