Krishna Institute of Medical Sciences Ltd (KIMS) has expanded its footprint into Kerala after its wholly owned subsidiary KIMS Swastha Pvt Ltd entered into definitive agreements with Avitis Super Speciality Hospitals Pvt Ltd for the operations and management of a 210-bed super speciality hospital in Palakkad.

The agreement, effective April 2, 2026, will run for 20 years. 

According to the stock exchange filing, the transaction includes both an Operations and Management Agreement and a sub-lease deed for the land and hospital building, with both agreements coterminous for the full tenure. KIMS will have exclusive supervision and control over the hospital’s management and operational efficiency. 

As part of the financial terms, KIMS will pay a total security deposit of Rs 29.75 crore for operations and management, of which Rs 5 crore will be retained by Avitis, while the balance will be recovered from fees over a specified period. In addition, KIMS will pay ₹25 lakh as an interest-free refundable deposit for the sub-lease of land. 

The revenue-sharing arrangement stipulates that KIMS will pay Avitis the higher of a minimum guarantee of Rs 22 lakh per month or 4% of the hospital’s total net revenues, with the revenue fee including Rs 3 lakh per month towards sub-lease rent. 

The company said the partnership will help bring KIMS’ clinical and operational expertise to a new market in Kerala, while strengthening the brand’s presence in the state. Importantly, the agreement also grants KIMS a call option to acquire a majority stake in Avitis in the future, subject to terms laid out in the transaction documents. 

The filing clarified that the transaction does not fall under related party arrangements, underscoring that the deal has been executed at arm’s length.