Mukesh Ambani-led Reliance Industries Limited (RIL) has taken a significant step into the healthcare sector by acquiring Karkinos Healthcare Pvt Ltd for Rs 375 crore. The acquisition marks a strategic move to expand Reliance’s footprint in technology-driven healthcare solutions, focusing on early cancer detection, diagnosis, and management.

A Strategic Investment by Reliance

On December 27, 2024, Reliance Strategic Business Ventures Ltd (RSBVL), a wholly-owned subsidiary of RIL, completed the acquisition of Karkinos. According to the approved resolution plan, RSBVL subscribed to and was allotted 1 crore equity shares valued at Rs 10 each, aggregating Rs 10 crore. Additionally, it acquired 36.5 crore Optionally Fully Convertible Debentures (OFCDs) of Rs 10 each, totaling Rs 365 crore.

This strategic investment positions Karkinos as a step-down wholly-owned subsidiary of RIL, further enhancing the conglomerate’s healthcare portfolio.

What is Karkinos Healthcare?

Karkinos Healthcare, incorporated in India on July 24, 2020, is a pioneering company offering innovative, technology-driven solutions for the early detection, diagnosis, and treatment of cancer. Its mission is to make cancer care accessible and affordable while maintaining profitability.

In the fiscal year 2022-23, Karkinos reported a turnover of approximately Rs 22 crore, underscoring its potential for growth in the fast-evolving healthcare landscape.

Key Steps in the Acquisition Process

• Equity and Debenture Allocation: RSBVL acquired 1 crore equity shares and 36.5 crore OFCDs, ensuring substantial control over Karkinos.
• Cancellation of Existing Shares: The company canceled 30,075 existing equity shares held by previous shareholders, as mandated by the resolution plan.
• Becoming a Wholly-Owned Subsidiary: Post-acquisition, Karkinos now operates as a step-down wholly-owned subsidiary of Reliance Industries.

Prominent Investors and Legacy

Before the acquisition, Karkinos attracted investments from renowned entities, including:

• Ewart Investments Limited, a 100% subsidiary of Tata Sons.
• Mayo Clinic, a leading healthcare institution based in the United States.
• Reliance Digital Health Ltd, a subsidiary of Reliance Industries.
• Sundar Raman, Director at Reliance Foundation Youth Sports and former COO of the Indian Premier League.
• Ravi Kant, former Managing Director of Tata Motors.

These associations highlighted the trust in Karkinos’ innovative approach to affordable cancer care.

Karkinos’ Impact on Cancer Care

Karkinos is redefining cancer care by offering end-to-end services emphasizing early detection and effective treatment. The company aims to deliver services at costs significantly lower than prevailing market rates, ensuring accessibility to a broader population while maintaining healthy profitability.

Reliance’s acquisition will likely accelerate Karkinos’ mission by integrating advanced technology, operational expertise, and financial resources.

A Bold Step Towards Healthcare Transformation

Reliance Industries’ move to acquire Karkinos aligns with its vision of diversification and societal impact. Mukesh Ambani has consistently emphasized the role of technology in improving lives, and this acquisition demonstrates the company’s commitment to tackling critical health challenges like cancer.

With Karkinos now under its wing, Reliance is poised to revolutionize cancer care in India, making it more accessible, affordable, and efficient for millions.