Venkatesh Vastare, chief executive officer of Alliance Dental Care, said the company would add 75-100 clinics every year to its existing 91 clinics in operation. The investment for setting up one clinic is Rs 85-95 lakh. The expansion will be a combination of company-owned and collaborative models.
"We are estimating Rs 150-200 crore to set up clinics and to support this, we're planning to raise Rs 50-75 crore from PEs," he said. Each of these clinics will be spread in 1,500-2,000 sq ft and will have three to five chairs (dentists).
Also Read
By 2020, the company aspires to be one of the largest dental chains in the world with 500 centres.
In Tier-II and Tier-III cities, the chain would collaborate with local dentist by making them partners.
The company hopes to achieve a turnover of Rs 65 crore and set a target of Rs 100 crore next year. In FY14, the company clocked a revenue of Rs 30 crore and it was increased to around Rs 50 crore in FY15.
Apollo Dental will take the joint venture route to expand its footprint outside India.
To start with, the company is planning to set up 10 centres in United Arab Emirates (UAE), which will be followed by a few clinics in Malaysia. "We are hoping that during the third quarter of this financial year, we will open our first clinic in the UAE," said Vastare.
Malaysian sovereign wealth fund Khazanah is one of the early investors still invested in Apollo Hospitals. Khazanah holds a 10.85 per cent stake in the hospital chain.
Oppenheimer Funds, a subsidiary of Massachusetts Mutual Life Insurance Company, has a 8.69 per cent stake in Apollo Hospitals. Oppenheimer bought the stake from Apax Partners.
Apax Partners has reportedly sold 19 per cent in Apollo Hospitals for Rs 2,240 crore through several transactions in the open market, giving it a three-fold return over a period of six years. The company started picking up stake in 2007, starting from acquisition of 11.5 per cent shares in Apollo for $104 million (Rs 420 crore according to the currency value at the time). It later increased its stake through various means, increasing its investment to around Rs 680 crore, say reports.
In October 2013, US-based private equity firm Kohlberg Kravis Roberts had infused Rs 550 crore in PCR Investments, the holding company of Apollo Hospitals.
Trivitron has also attracted private equity investment from various funds, including India Value Fund Advisors, which picked up a minority stake in the former for Rs 150 crore in December 2013. The other investors in Trivitron are Fidelity Growth Partners India and Fidelity Biosciences (USA).