Tamil Nadu hospital earmarks Rs 96 crore for expansion in local, African markets

“We have planned our expansion in two phases,” said Sujay Sambamoorthy, CEO, Parvathy Hospital. “The first phase will consist of acquiring four existing properties in Chennai. “Acquiring 8 hospitals in Tamil Nadu and setting up new ones in Uganda and Ghana will happen in the second phase. The city-based hospital has one facility in Chennai with 120 beds providing trauma, orthopaedic and neuro care among others. The hospital reported an income of Rs 45 crore in FY18.

“By March 2019, we would have added four more hospitals in Chennai, for which we are in advanced talks with property owners. This would increase our bed strength to 250. We have set aside Rs 20 cr and the expansion cost would be met through internal accruals,” he said. Besides, the hospital is also mulling setting up five urgent care clinics on the GST Road, to cater to accident victims. This would cost Rs 80 lakh,” he added. These clinics would be set up in the vicinity of villages and townships on the national highway.

Regarding phase 2 expansion, he said the firm would require about Rs 75 crore. About Rs 60 crore is needed for acquiring eight hospitals and Rs 15 crore for setting up two new hospitals in African countries. The hospital would seek the assistance of an investment banker by next fiscal to raise the required funds. “We will need around Rs 75 crore, the amount can go up if it is a good acquisition. There would be some dilution by the promoters. Our vision is to have 500 beds by 2020,” he said.

Sambamoorthy said the firm was in advanced stages of acquiring an hospital in Coimbatore. It could be a joint venture or a 100% buyout, he said. Plans were also on to set up hospitals in tier 2 cities of Tamil Nadu. He added there was a good market for orthopaedics in Africa and that the firm would set up a new unit there instead of buying an existing facility.