New Delhi, Dec. 16 -- Even as large hospitals in India rapidly consolidate, smaller corporate chains are aggressively expanding with an aim to grow into regional leaders - which, experts say, in turn, could position them as buyout targets for the big players.

The mid-tier chains are betting on greenfield opportunities and expansion of existing hospitals buoyed by internal accruals and debt, increasing demand for private healthcare, and growing insurance penetration. In some instances, expensive and complicated buyouts are part of the strategy.

India's private hospital sector is largely unorganized, with large swathes in tier-I as well as tier-II and tier-III cities under-penetrated by organized corporate chains. "The top 20 organized pl...