Jaypee Group enters healthcare sector, plans to invest over $330M by 2018

Jaypee Group, a Noida-headquartered diversified business house owned by the Gaur family with interests in infrastructure, real estate, hospitality and cement among others, is entering the healthcare sector with a chain of mid-sized hospitals.

The group plans to use its idle land assets to create a hospital chain with an investment of around Rs 2,000 crore over three-four years, according to a report by The Economic Times, citing group chief Jaiprakash Gaur. This proposed investment does not include the cost of land on which the hospital units would be constructed.

Gaur, founder of Jaypee Group, said, “Five years down the line, we want healthcare to become the core business of our group.”

Gaur’s daughter Rekha Dixit and Vikram Singh, former COO at Wockhardt Hospitals, are spearheading the efforts.

The group aims to have a chain with around 3,000 beds in total, making it one of the top corporate hospital chains in the country. While there are a few large hospital chains such as Apollo, Fortis, Max and Manipal, hospitals as a business is largely dominated by standalone units either owned by the government of private trusts.

The first project will be a 1,200-bed facility in Noida, with would involve an investment of over Rs 500 crore.

The group has decided to float a hospital chain in northern India, covering cities such as Agra, Bulandshahr, Kanpur, Sahibabad and Noida where it plans to build 500-bed and 250-bed hospitals.

In the next phase, it plans to build relatively smaller hospitals and medical centres along the Yamuna Expressway, where the group has large real estate presence.

Jaypee Group has roped in advisory firm Huron Consulting Group for the healthcare foray.

(Edited by Joby Puthuparampil Johnson)

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