Apollo Hospitals Enterprise is looking out for acquisitions. The Rs 309 crore Chennai-based healthcare major is also evaluating a possible brand valuation exercise in the next financial year. It is also in talks with private insurance players Allianz Bajaj and ICICI Prudential for a third party administrator (TPA) role.
Top Apollo Hospitals sources said the healthcare major was looking at acquisitions and would target hospitals in regions where it was not operating in. "Apollo would be looking at acquisitions but would only look at using its equity as currency for taking over. The company is looking at expanding into geographical spreads where it is not currently operating in, but is not averse to taking over corporate hospitals which have gone sick," the source said.
Apollo Hospitals founder and chairman Prathap Reddy is understood to be the prime force behind the move to go in for the brand valuation exercise.
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Apollo, which has been granted a TPA license by the Insurance Regulator and Development Authority (Irda), is also understood to be in talks with private life insurance players Allianz Bajaj and Prudential ICICI for a TPA role where Apollo would administer and process policies sold by the two entities. Apollo already has existing relationships with LIC and GIC for a TPA role and has so far administered 1.4 million policies.
The company has started to move towards US GAAP accounting standards and has appointed Deloitte & Touche as advisors for a self stated intent of listing in the US. It is also examining the idea of offering productivity linked stock options to key senior management staff when the US listing is over.
"The group did examine the idea of giving employees stock options but was surprised that most employees across levels did not prefer stock options. But the management has decided to reward senior management personnel with productivity linked options, once the US listing is over".
"The focus this financial year is to consolidate the business process outsourcing (BPO) division and ensure that the global nurse programme takes off the way it is envisaged," the source said.
Meanwhile Apollo Hospitals Enterprise has posted a net profit of Rs 5.2 crore for the quarter ended December 31, 2001, as compared with Rs 6.4 crore for the quarter ended December 31, 2000, a decline of 18.75 per cent. Total income stood at Rs 90. 4 crore (Rs 78.7 crore).