| Log in

Apollo Hospitals Looks At Gulf, Middle East Investors For Expansion

18 June, 2009
Apollo Group, one of the largest healthcare groups in India, is looking to raise funds from Gulf and Middle East investors for expansion plans of its hospital chain. Apollo Hospitals has said that
it’s slowing its expansion overseas and the focus is now on expanding in India, according to this report. This comes as the firm has dropped out from the race to buy Wockhardt Hospitals citing high valuations. 
 
In order to expand aggressively across India, Apollo is looking to reduce the costs the incurred by it when constructing a hospital. For this it’s seeking a proposal whereby real estate investment trusts can separately own the hospital land and buildings, while it can focus on management of the property. It is also looking at reducing costs by leasing medical equipment. 
 
Apollo presently has 43 hospitals with a total of 8,000 beds, which it’s looking to expand to 65 hospitals with 14,000 beds by 2014. The firms recently raised $50 million from International Finance Corporation (IFC), the private equity arm of World Bank. While it will receive $35 million as debt, the remaining $15 million will be in the form of convertible debentures. Private   equity major Apax Partners, which invested Rs 426.40 crore in 2007, holds a little less than 14%
in the firm. 
 
Apollo was looking for overseas expansion but its efforts haven’t been very successful. The firm ulled out of its project in Sri Lanka and a joint venture in Dubai. It recently set up an hospital in Mauritius which proved to be costly as Apollo had to import everything. 
 
Apollo also has a pharma retail chain, and healthcare outsourcing firm Apollo Health Street, which filed for an IPO last year before the market meltdown.
 
Recently Apollo Hospitals was sent a notice by Enforcement Directorate (ED) on alleged diversion of funds. It has been asked to explain the end use of GDR issue made by the company during the year 2005. 

 


Leave Your Comment
Apollo Hospitals’ chief Prathap Reddy on expansion, entering new disciplines & roping in a partner for pharmacy unit

Apollo Hospitals’ chief Prathap Reddy on expansion, entering new disciplines & roping in a partner for pharmacy unit

Lohit Jagwani 4 years ago
Chennai-headquartered Apollo Hospitals Enterprise Ltd, country’s largest...
Narayana Health's Viren Shetty on expansion road-map, acquisition strategy & more

Narayana Health’s Viren Shetty on expansion road-map, acquisition strategy & more

Jasleen Kaur Batra 3 years ago
Narayana Hrudayalaya Pvt Ltd, which operates a chain of multi-specialty and-...
Apollo to buy majority stake in Guwahati-based hospital for up to $9M

Apollo to buy majority stake in Guwahati-based hospital for up to $9M

Jasleen Kaur Batra 2 years ago
Apollo Hospitals Enterprise Ltd, the country’s top healthcare service...
No Comments

Apollo Hospitals Looks At Gulf, Middle East Investors For Expansion

Powered by WordPress.com VIP