The Bajaj Group is expected to enter the healthcare sector by making an initial investment of Rs 10,000 crore ($1.1 billion) to develop a chain of hospitals across the country, two people familiar with the development said. The amount would be deployed in phases in a network of high-quality and affordable healthcare delivery.

The conglomerate has not issued any statement on this matter, and a Bajaj spokesperson declined to comment on it. Indian media had earlier reported that Bajaj was interested in the healthcare sector but did not give details of the amount of investment.

Bajaj's move is in line with the rapid growth of India's healthcare industry, driven by rising income levels, expanding insurance coverage, and an aging population. Apollo Hospitals Enterprise Ltd., India's largest private healthcare provider, reported revenue of approximately Rs 19,000 crore for the fiscal year ending March 2024, with a net income exceeding Rs 870 crore.

The Bajaj family, which began with sugar and cotton a century ago, has diversified into multiple industries, including motorcycles, insurance, and finance. Bajaj Auto Ltd., one of the world's leading two-wheeler manufacturers, remains its flagship company. The new hospital venture will reportedly be led by Nirav Bajaj, son of Bajaj Auto Chairman Niraj Bajaj, although the launch timeline remains undisclosed.

Bajaj already has a footprint in the healthcare sector with Bajaj Allianz General Insurance offering health insurance, and Bajaj Finserv Health Ltd., a consumer healthcare platform that offers telemedicine, lab tests, and online pharmacy services. The group had also launched Bajaj Vitality last year.

The Indian healthcare sector has been performing well in the market. Apollo Hospitals stock has increased by 28% in 2024, while Max Healthcare Institute Ltd. has increased by 64%. Bajaj's entry into the industry will further increase competition and accessibility in the private healthcare sector of the country.