KIMS Signs Five-Year O&M Pact to Operate 183-Bed Trust Multi Speciality Hospital in Kakinada

Krishna Institute of Medical Sciences Ltd (KIMS) has executed an exclusive Operations and Management (O&M) agreement with Sarvottam Health Care Private Limited to manage and operate the 183-bed Trust Multi Speciality Hospital located in Kakinada, Andhra Pradesh.

The agreement, announced on September 10, 2026, grants KIMS exclusive operational supervision and day-to-day management rights over the medical facility for an initial period of five years, with a provision to extend the contract for an additional five-year term.

Commercial Terms and Asset-Light Structure

Under the terms disclosed by the company pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, KIMS will receive an ongoing management fee equal to 9% of the hospital's total net revenue. Net revenue has been defined as gross revenue billed to patients less any concessions, discounts, or write-offs offered.

The agreement does not involve any equity dilution, joint venture formation, or upfront acquisition capital expenditure, aligning with KIMS's strategic focus on capital-efficient, asset-light expansion. KIMS will assume complete management control and provide clinical governance, administrative systems, and medical oversight.

Details of the Kakinada Facility

The partner institution, operated under Sarvottam Health Care Private Limited, has an established track record in the coastal Andhra Pradesh region:

• Inception and Evolution: The facility originally commenced operations in 2010 as a 50-bed unit and subsequently underwent major capacity expansion in 2021 with the addition of a modern G+7 structure.
• Capacity and Infrastructure: The hospital currently houses 183 installed beds, spanning a total built-up area of 9,847.23 square metres across a land parcel measuring 3,001.36 square yards.
• Regional Reach: Situated in Kakinada, the hospital serves a significant catchment area in East Godavari district, addressing demand for specialized secondary and tertiary medical care.

Strategic Significance for Investors

The contract deepens KIMS's presence across its core home market of Andhra Pradesh, where the chain already operates large tertiary care hospitals across multiple tier-1 and tier-2 urban centers.

By deploying an O&M model rather than undertaking greenfield development or outright buyout, KIMS bypasses lengthy construction and licensing gestations, immediately generating revenue share while expanding its patient referral network across the state. In broader corporate strategy, KIMS has utilized similar O&M and lease mechanisms across Maharashtra, Kerala, and other Andhra Pradesh locations, maintaining return ratios while scaling bed capacity.

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