Chennai: The New Delhi-based Fortis Group has some interesting plans in store for Malar Hospitals Limited.

International Hospital Limited, a wholly owned subsidiary of Fortis Healthcare Limited, and Oscar Investments Limited, have entered into an agreement with the promoters of the Chennai-based Malar Hospitals to acquire a 28 per cent stake.

Fortis will also make an open public offer for acquiring a 20 per cent stake from the public. The deal paves way for Fortis to establish itself in South India.

Announcing the deal to the media in Chennai on Thursday, Anil Panwar, president, governance and growth, Fortis Healthcare Limited, said that the 180-bed Malar Hospital had a revenue potential of Rs 40 lakh per bed per year.

The group would invest anything between Rs 20 and Rs2 5 crore towards upgrading the facilities and making it into a specialist centre for cardiac care in the city.

"Our team will study the set up in Malar Hospitals, and decide on the future course of action", said Daljit Singh, president, strategy and organisational development.

Fortis has no plans to change Malar Hospitals' name immediately, thought it may be. co-branded. It will be interesting how the co-branding will be: whether Fortis would leverage the brand name of Escorts Hospitals, known for its cardiac care, or use the Fortis brand.

Singh added that the group is on the lookout for more such deals in Chennai.

The enterprise value of Rs 570 million for Malar Hospitals was arrived at mutually by the two groups.