Global financial institutions American International Group (AIG) and J P Morgan are reportedly to invest a total of INR 400 crore in Bangalore based Narayana Hrudayalaya for a 25 per cent stake in this cardiac hospital chain, valuing it at INR 1,600 crore. According to industry sources, AIG and J P Morgan are investing INR 200 crore each in this chain. This investment comes at a time when Narayana Hrudayalaya is looking to expand to around six other Indian cities after establishing in Bangalore and Kolkata. The Narayana Hrudayalaya management could not be reached for comments. This chain specialises in paediatric care and is among the world’s largest in the segment. Narayana Hrudayalaya was started in 2001 by Dr Devi Shetty under the aegis of the Asian Heart Foundation. Spread over 25 acres, the flagship hospital is on the Hosur Road in Bangalore. With Phase I of the construction completed, the hospital currently spread over six floors hosting 500 beds and 10 operating theatres. Apart from cardiology, the hospital also offers treatments in the area of paediatrics, neurology, gastroenterology and with the help of ISRO, Narayana Hrudayalaya has played a pioneering role in telemedicine. This investment from AIG and J P Morgan comes nearly an year after Azim Premji, chairman of Wipro Ltd came close to investing INR 100 crore for a 26 per cent stake in the firm, on a personal basis. Devi Shetty through his initiatives has been bringing down the cost of cardiac surgeries through what he fondly calls the ‘Wal-martisation of healthcare’, by performing close to 30 open heart surgeries and almost an equal number of catheterisation procedures a day, which is eight times the average at other Indian hospitals. According to industry information, Narayana Hrudayalaya is set to expand with the onset of Phase 2, which will sprawl over 100 acres. The structure will accommodate 780 beds, 30 operating rooms to perform 75 heart surgeries every day. Besides the hospital, it will also accommodate a teaching institute for cardiologists, cardiac surgeons, cardiac anaesthetists, nurses, health technicians and healthcare specialists. Once completed, the entire project to be called Health City, will have 5,000 beds with specialty hospitals for every disease. Presently, Narayana Hrudayalaya runs nine primary healthcare centres, has taken over nine more of the Government of Arunachal Pradesh and is building 16 primary health centres in Amethi of Uttar Pradesh State. This move by Narayana Hrudayalaya comes almost parallel to another Bangalore hospital, Manipal Group planning to raise a similar sum of around INR 350 crore from private equity players.