Healthcare major Apollo Hospitals Enterprise Ltd. (AHEL) is planning to add 2,000 beds over the next four years in four major cities with a capex of ₹3,000 crore, said chief financial officer A. Krishnan.
“Over the next four years, we are looking at adding 500 beds each in Chennai, Bengaluru, Gurgaon and Mumbai,” he said in an interview.
Mr. Krishnan said AHEL had a clear road map and also a free cash flow of ₹800 crore. The expansion costs would be predominantly funded through internal accruals. AHEL would adopt both organic and inorganic routes for adding 2,000 beds.
Currently, AHEL has 10,000 owned and operated beds through 43 owned and five managed hospitals. Of these, 15 are new hospitals with 2,400 operating beds accounting for 24% of the total numbers, he said.
“Over the 24-month period, we are looking at adding beds. There will be two brownfields in Bengaluru, which will give us another 400 beds,” MD Suneetha Reddy said in an earnings call. “Our plan is really to go to 2,000 beds in the next 3 to 4 years with a capital outlay of ₹3,000 crore,” she added.
According to her, Chennai OMR will have a large hospital. More beds in Chennai and Gurgaon would be added FY25 onwards.
Asserting that occupancy across the group during the third quarter was 66% in ‘mature’ hospitals and 62% in ‘new hospitals’, she said, “Our target for the year is 70% and our intention is to take it up to 75% over the next two years.”
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