Apollo Hospitals to Invest Rs 1,600 cr in Expansion

Meanwhile, its planned foray into ayurveda in a big way has hit a block,
after talks with Kottakkal Arya Vaidya Sala having failed. The consolidated
revenue rose to Rs 2,605 crore in 2010-11 from Rs 2,026 crore a year before,
a rise of 28 per cent. Profit after tax rose to Rs 183.9 crore from Rs 137.6
crore, an increase of 33 per cent.
Speaking at the sidelines of the company’s annual general meeting here on
Friday, Prathap C Reddy, executive chairman and founder, said the chain had
8,700 beds with 54 hospitals across the country. It planned to add 3,000
beds with 10 hospitals by 2013-14. The six sites finalised include Mumbai,
Nashik and Tiruchi, he said.
The proposed investment includes better technology. “We are planning to buy
four robots from a US-based company for $2.2 million each”, to be used for
surgery and other treatment, he said.
The proposed investments will be funded through debt and equity, which
include the promoters’ infusion. “We (promoters) have committed Rs 320 crore
to infuse, of which 25 per cent is already infused,” said Reddy. The chain
got shareholders’ nod to raise Rs 900 crore through qualified institutional
placement, of which the total it has raised till now is Rs 330 crore.
Reddy said talks with the century-old and Kerala-based Kottakkal Arya Vaidya
Sala had not worked.
“The issue has been related to patents, testing and others. It did not work
and it is not possible with them for now,” he explained.
The chain is now looking for another partner in the proposed foray.
Apollo and Kottakkal earlier planned to jointly conduct research in the
traditional system of medicine for scientific validation of treatment and
come up with a database. On obtaining scientific validation, Apollo was to
offer ayurvedic treatment in its hospitals.
Apollo Health City in Hyderabad and a couple of other hospitals of the group
already offer ayurvedic rejuvenation therapy. The collaboration with
Kottakkal was expected to widen the scope, to disease treatment.
Apollo also plans to hive off its pharmacy retail chain, said Reddy. “We are
waiting for the retail bill (of the central government) to come, following
which we will take a final call.”The number of pharmacies will be increased to 1,500 from the 1,199 as on
March 31. The pharmacy business has also reported good earnings, said Reddy.