Reliance Industries Ventures into Oncology with Karkinos Healthcare Acquisition

In a strategic move to bolster its healthcare portfolio, Reliance Industries, led by billionaire Mukesh Ambani, has acquired Karkinos Healthcare for a staggering Rs 375 crore. This acquisition marks a significant step for Reliance into the technology-driven oncology sector.

Karkinos Healthcare, established in July 2020, specializes in innovative solutions for the early detection, diagnosis, and management of cancer. With a turnover of approximately Rs 22 crore in the fiscal year 2022-23, Karkinos has shown promising growth in the healthcare sector.

Reliance Strategic Business Ventures Ltd (RSBVL), a wholly-owned subsidiary of Reliance Industries, completed the acquisition by subscribing to and being allotted 1 crore equity shares and 36.5 crore optionally fully convertible debentures of Karkinos. This strategic investment underscores Reliance's commitment to expanding its footprint in the healthcare industry.

Strategic Partnerships and Future Prospects

Karkinos has been at the forefront of forming strategic partnerships, collaborating with around 60 hospitals by December 2023 to provide comprehensive oncology services. The company is also in the process of establishing a 150-bed multispecialty cancer hospital in Imphal, Manipur, through a subsidiary.

Looking ahead, Karkinos aims to generate income through Advanced Cancer Care Diagnostics and Research (ACCDR), Distributed Cancer Care Network (DCCN), corporate tie-ups for early cancer diagnosis, and cancer care hospitals. This acquisition is poised to significantly enhance Reliance's health services business portfolio.

The resolution plan for Karkinos, approved by the National Company Law Tribunal (NCLT), Mumbai Bench, required no additional governmental or regulatory approvals, facilitating a smooth transaction process.