MC EXCLUSIVE With KKR on board, Kerala’s Meitra Hospital to expand to other southern states, says founder Kottikollon

Faizal Kottikollon, Chairman, Meitra Hospital

Kozhikode-based Meitra Hospital, founded by NRI entrepreneur and philanthropist Faizal Kottikollon, is gearing up for a major expansion outside Kerala after global private equity giant KKR acquired a majority stake in the premium healthcare institution.

The deal, announced on September 22, marks the third hospital acquisition for the private equity firm in the past 12 months during which it acquired cancer hospital chain HCG and Kerala-based Baby Memorial Hospital (BMH).

“Meitra will be the premium brand and will continue separately with its own management. The brand will now be taken outside Kerala to other cities,” Kottikollon told Moneycontrol in an interview.

From green foundry to healthcare, philanthropy

Kottikollon, who has spent most of his life in the UAE after a stint in the US, made his fortune in manufacturing before turning to philanthropy. In 2012, he built the world’s first green foundry in Sharjah and achieved what he calls his “first billion-dollar exit".

“Then, my wife and I decided no more just making money. We wanted to focus on philanthropy. We came to India to transform education and healthcare,” he said.

His search for world-class models led him to the Cleveland Clinic in the US, where he funded research in return for doctors joining his board. The result was Meitra, which opened in 2016 with a unique construction model, assembled entirely from offsite prefabricated modules built at his Krishnagiri factory.

“The uniqueness of Meitra Hospital is that it was built entirely offsite, like Lego blocks, and assembled here. I spent Rs 500 crore to build the factory to make this possible. Nothing of that quality existed in India,” Kottikollon said.

The first phase of Meitra was a Rs 450 crore investment for a 220-bed facility, making it one of India’s most expensive hospitals  when measured per bed..

“We built at 2,000 square feet per patient bed, compared to the 1,200 square feet norm in India. The idea was to meet world-class standards because India needs such infrastructure to attract foreign patients,” he said.

Since then, Meitra has operated at maximum capacity, pushing the need for expansion.

“That’s why phase two began. We brought in KKR, who had already acquired BMH in Kerala. They visited Meitra and were fascinated by the model. That’s how the discussions started — to expand this tested model across Indian cities,” Kottikollon said.

KKR partnership and Phase 2

The next phase of expansion begins October 8 when ground will be broken for an additional 200 beds, including a dedicated oncology block, once again built using prefab technology.

Discussions are also on for expansion in two other cities in South India, Kottikollon said.

“India needs a lot of hospital beds. The population is increasing, and the fastest way to expand capacity is by building high-quality hospitals quickly, using prefab construction like we did. With KKR’s partnership, we can scale much faster, and hopefully set a model for others to follow,” he said.

Even though KKR now owns a majority, Kottikollon will remain the chairman.

“They wanted me to continue as chairman and lead the expansion. In healthcare, one proven model like Meitra can be replicated across cities. KKR, as a private equity investor, looks for returns, and assets like this allow fast, high-quality expansion,” he said.

Tapping medical tourism

About five percent of Meitra’s revenue comes from overseas patients, largely from Oman. The share is expected to triple once additional capacity comes onstream.

“With the new beds, in 12–18 months, we’ll target GCC markets like UAE and Saudi. They haven’t come to India so far because of lack of quality infrastructure. We expect foreign patient revenue to grow to 15 percent,” he said.

Kottikollon said political instability in the Middle East had not dented inflows. “GCC countries are isolated from those conflicts. Trust and government-level ties are strong. We expect more UAE nationals coming to Meitra,” he said.

The focus, he said, would remain firmly on the Gulf region. “The main focus is GCC — Saudi, Qatar and UAE — because of proximity to South India and the large South Indian diaspora there. We don’t want to spread too thin," he said.

Talent advantage and future bets

Despite India’s chronic shortage of doctors, Kottikollon said Kerala’s abundant medical talent offers an advantage to Meitra.

“Kerala is the largest exporter of nurses globally. Doctors are also plenty, and many Malayali doctors abroad want to return if quality infrastructure exists. Meitra provides that, so we’ve not faced a shortage,” he said.

Kottikollon said recent US policy changes may even aid India. “The new $100,000 H1-B fee in the US might accelerate the return of talent. Many young professionals today see India as attractive — our infrastructure and opportunities are strong,” he said.

According to Kottikollon, for now, the priority is scaling Meitra with KKR’s backing. “Education and healthcare are the bedrock of a society. With KKR’s partnership, we can scale much faster, and hopefully set a model for others to follow,” Kottikollon said.

Beyond Meitra, he has also invested around Rs 1,000 crore in an integrated healthcare venture called Tulah. Launched earlier this year in Calicut, Tulah combines traditional and modern medicine under one roof. Tulah will cater to the ultra-premium segment, while a sub-brand Veiia by Tulah is planned for a wider audience across India and select international cities.