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Manipal, Apollo hospitals plan big investments for expansion


Mumbai: India’s top two hospital operators – Apollo Hospitals and Manipal Health Enterprises – are planning major investments in setting up new facilities after making several acquisitions in the recent past, to tap into the growing trend of Indians preferring the organised sector for their healthcare needs.

Manipal Health, the second largest chain with 9,500 beds and 33 hospitals in 17 cities, plans to invest about ₹1,500 crore to add 1,400 beds in the next two quarters. Market leader Apollo, which currently operates 10,000 beds, has a target to add 2,400 beds during fiscal 2025-27.

Manipal will commission three hospitals in Bengaluru with a combined bed capacity of 1,000 and one 400-bed hospital in Raipur by mid-2024, a top executive said.

Manipal, Apollo Hospitals Plan Big Investments for Expansion.

“The significant investment is already underway in four greenfield quaternary-care hospitals. Adding about 1,400 beds in Bangalore and Raipur is a testimony to our belief that the need for high-quality healthcare will continue to grow,” said Dilip Jose, managing director and chief executive of Manipal Hospitals. “In addition, we will seek to augment our presence in the NCR (National Capital Region) besides exploring opportunities in other geographies like Hyderabad and Vizag,” he added.

In September, Manipal added about 1,200 hospital beds through its latest buyout of Kolkata’s AMRI Hospitals Ltd, expanding its presence in Eastern India as the region’s largest hospital chain.

Manipal Health has been expanding its presence across the country through buyouts. In 2020, it acquired the Indian assets of Columbia Asia Hospitals for ₹2,100 crore and, in June 2021, bought Bengaluru-based Vikram Hospitals from Multiple Private Equity for around ₹350 crore.

Singapore government-owned fund Temasek Holdings owns about a 59% stake in Manipal Health. Promoter Ranjan Pai, along with his family, holds 30% and TPG Growth has the remaining 11% stake.

Apollo Hospitals is also planning a greenfield expansion, starting from next fiscal year.

“We have seen a shift in India from an unorganised market to an organised, quality healthcare market, especially post Covid-19,” group chief financial officer Krishnan Akhileswaran told ET. We are strengthening our presence in the existing markets like Chennai, Hyderabad, Kolkata and the NCR, besides expanding into Pune, Varanasi, Gurgaon and other North Indian markets with an investment of ₹3,500 crore, he added. According to Akhileswaran, Apollo is looking for more greenfield opportunities as acquisition cost is high now.


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