Saturday, July 20, 2024

Aster DM Healthcare Announces Rs. 250 Cr Expansion Plans for Aster CMI Hospital, Bengaluru; to Add 350 Beds

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The hospital will have an additional infrastructure expansion of 300,000 sq feet with an investment of around Rs. 250 cr

The hospital will increase its bed capacity from existing 500 to 850 beds by FY2027

The expansion is in line with Aster’s mission of becoming 3rd largest healthcare player in India in the next 3 years

Aster DM Healthcare Limited (“Company”), one of the largest integrated healthcare providers in India, has announced its expansion plan for Aster CMI Hospital, a leading multispecialty hospital in Bengaluru. The unit will have an additional infrastructure expansion of 300,000 sq feet thereby increasing its bed capacity from the existing 500 beds to 850 beds. With this development, the company is further strengthening its presence in Bengaluru, reaching a cumulative bed strength of 1602 beds, thereby becoming one of the largest healthcare providers in the city. The Company will invest around Rs. 250 cr to upgrade the existing facility and is expected to be commissioned by FY2027.

Aster CMI Hospital

Spread across an area of 4.45 lakh square feet in Hebbal, Bangalore, Aster CMI Hospital, is one of the leading super-specialty hospitals with contemporary state-of-the-art facilities offering comprehensive primary care to quaternary care services. Since its launch in 2016, the hospital has secured its place as one of the best multispecialty hospitals in the country today – a testament to the hospitals dedication of continuously raising the bar for clinical standards in the country.

Dr. Azad Moopen, Founder Chairman, Aster DM Healthcare said, “Our phase-wise expansion is aligned with our vision to serve the growing needs for advanced and quality healthcare. Aster CMI Hospital since its launch in 2016 has revolutionized the healthcare market in Bengaluru and the whole of South India. Today, the hospital stands amongst the leading players in the market. With many innovative and ambitious initiatives, Aster DM Healthcare has radically catalyzed the healthcare revolution in India. The current Indian healthcare market looks highly promising, and our efforts will be to increase our footprint in the country dynamically. We are investing heavily in our people, innovation and infrastructure to differentiate ourselves and create long-term value for all our stakeholders. The expansion of Aster CMI Hospital thus solidifies our unwavering commitment to the Indian business. The overall India business EBITDA for Aster DM Healthcare has grown at the rate of 35% CAGR over the past 5 years, which is reflected in the performance of EBITDA margin as well. We expect the strong performance to continue in the future, which will be supported by operational leverage on account of brownfield expansion and implementing various cost optimization measures.”

Dr. Nitish Shetty, CEO, Aster DM Healthcare, India said, “We are running our existing hospital (Aster CMI) at full capacity, hence we have decided to expand the infrastructure to accommodate the growing needs of patients. Aster CMI Hospital has already set new benchmarks on healthcare excellence and this expansion cements our promise to making quality healthcare easily accessible to the people in the region. This expansion of Aster CMI Hospital is expected to have a positive impact on both EBITDA and PAT, as it involves minimal fixed costs for operating the additional beds. We do not expect any margin dilution in the short term as well. Aster DM Healthcare (“Company”) is poised to make a significant impact on the healthcare landscape its focus on strategic growth, patient-centric care, and expansion in existing and newer geographies.

The Company plans to add ~1700 beds by FY27 taking the total bed tally in India to 6600+ through the organic route and will further look for expansion through the inorganic route as well to achieve its aim of becoming the top 3 integrated healthcare providers in India along with a strong presence of labs and pharmacies in the geographies that Aster has a presence in. The plan encompasses a mix of brownfield and greenfield projects, including the upcoming Aster Capital in Trivandrum, and Aster MIMS Kasargod and adding bed capacity to the existing hospitals. The Company will also be eyeing potential markets such as Maharashtra and Uttar Pradesh. The capital allocation for this expansion is in the range of 1000cr.

As one of the most trusted healthcare providers, Aster DM Healthcare aspires to keep on raising the benchmark and continue its unwavering dedication of providing outstanding care to its patients.

About Aster DM Healthcare Limited, India

Aster DM Healthcare Limited is one of the largest healthcare service providers operating in India with a strong presence across primary, secondary, tertiary, and quaternary healthcare through 19 hospitals with 4867 beds, 13 clinics, 215 pharmacies (Operated by Alfaone Retail Pharmacies Private Limited under brand license from Aster), and 232 labs and patient experience centers across 6 states in India, delivering a simple yet strong promise to different stakeholders: “We’ll treat you well“. Aster has been recognized as one of the most sustainable companies globally, with 9 hospitals featured in Newsweek magazine’s World’s Best Hospitals list for 2024..

(The above press release has been provided by NewsVoir.)

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