CHENNAI: Stating that Apollo Hospitals Enterprises Ltd (AHEL) aims to expand its further presence in northern India, as well as in the country's tier 2 and 3 cities, says Managing Director Suneeta Reddy.
“We reviewed our network with a planned strategy and identified the need to establish a stronger presence in northern markets as well as to reinforce our footprint in certain existing markets," she said in an interview.
As part of this the group plans to add at least 4,500 more beds in the coming years to its current 9,000 beds, she added.
"With the growing penetration of insurance, more people now have access to quality healthcare and the structural demand for it is significant. The private sector currently has about 1.5 lakh beds, with corporate hospitals like Apollo providing around 70,000 of them. Seeing the clear need for more quality beds, we have decided to expand in some important markets to meet this demand,” Apollo MD said.
Apollo Hospital recently opened a 225-bed facility in Pune, which will expand to 450 beds within the next year. In Sarjapur, Bengaluru, the 180-bed Belenus Hospital, acquired by Apollo, will be inaugurated early next year, followed by the 250-bed Apollo Sonarpur Hospital in Kolkata. In the first quarter of the next financial year, new facilities will open in Gachibowli (Hyderabad) and Gurgaon (NCR). Together, these projects will add nearly 1,700 beds across the country, with a capital investment of around Rs 3,500 crore.
Expansions are also underway in Jubilee Hills, Worli, Seshadripuram and Mysore. Apollo Hospitals is expanding its presence significantly in tier-2 and tier-3 cities such as Lucknow and Varanasi, along with existing operations in cities like Madurai, Trichy, Karur, Karimnagar, and Bilaspur.
“The population in these cities contributes nearly 35 percent to India’s GDP, and we believe this segment has the ability and right to access quality healthcare. Existing hospitals are expected to grow at 12-13 percent annually over the next five years, while newer hospitals in these markets are projected to grow around 5 percent. Apollo’s investments in these cities are showing strong returns, with ROCE above 22 percent, reinforcing confidence in their potential.”
Commenting on the AHPI and general insurers issue, Reddy said that constructive dialogue is ongoing and the parties are working together. She also mentioned that the group is working closely with various state governments to provide healthcare services in remote areas, highlighting that "we have been managing the Chittoor Government Hospital since taking it over in 2015."