Medical care provider Apollo Health and Lifestyle plans to invest around Rs 1,400 crore in the next three-fours years in expanding its presence across the country with its different formats.
The company will spend Rs 600 crore in setting up around 30 hospitals in Tier II cities across the country under the brand 'Reach Hospitals' and Rs 600 crore to raise the number of Apollo Clinics to 300 in three to four years. It is also investing Rs 200 crore on expanding the network of its maternity hospital chain, Cradle.
"The Reach Hospitals are specifically designed hospitals for the Tier II cities and some of them would have specialised services such as cardiology or cancer care and each of them would cost around Rs 20 crore, excluding real estate costs," Apollo Health and Lifestyle CEO Ratan Jalan said on the sidelines of the retail event 'Franchise India 2008'.
Each of these hospitals would have a capacity of around 100 beds and would require an investment of around Rs 20 crore each, he added.
The company is also looking to increase the number of Apollo Clinics to 300 from the present 45 within a period of three to four years.
Jalan said that most of these clinics would be set up through franchise mode. They would require an investment of around Rs 2-3 crore each.
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The company would also invest around Rs 200 crore in the next three years on expanding its maternity hospital chains under the brand, Cradle by setting up around 30 more such centres in Tier I and Tier II towns. Apollo Health has two centres, one each in Gurgaon and Bangalore. About half of the new ones would be owned by the company and the rest would be through franchise mode.
When asked about how the company is funding the expansions, Jalan said: "We are mostly managing through internal accruals and have no plans to sell equity".
Apollo has around 40 hospitals across the country with a capacity of 8,000 beds and is in the process of setting up 100 more in the next three years, he said without giving further details.