We're looking at acquiring hospitals in Bangalore and Hyderabad: Azad Moopen

Interview with Chairman and managing director, Aster DM Healthcare

Aster DM Healthcare, a Dubai-based healthcare service provider, has prepared expansion plans in India, West Asia and Africa. It is also all set to go for an IPO next year and will list on London and Indian stock exchange. In an interview with George Joseph, group chairman and managing director Dr Azad Moopen shares his company plans. Edited excerpts:

When will the IPO and the fund you are looking to mobilise materialise?

We plan to go for an initial public offer (IPO) early next year. We are mostly likely to go for listing on Indian exchanges to raise US $200-250 million.

How did the company utilise the PE funds?

The initial funds we received were used mainly for Aster Medcity, a hi-tech healthcare destination, which is currently being developed at Cheranallur in Kochi. The proceeds of PEs buying five per cent more in Aster DM Healthcare recently will take care of organic expansion in India and West Asia.

What are your plans for Kochi Medcity? When this will be commissioned?

Built across 1km water front, Aster Medcity in Kochi is an integrated medical township of international standards. While the $300 million greenfield venture will address the local patient needs, it is a perfect medical tourism avenue for inflows from South Asian nations. In the initial Phase, Aster Medcity will have a 575-bed quaternary care hospital with nine centres of excellence. In Phase ll, an additional 500 beds will be added  along with a medical convention centre, a 4-star hotel and apartments.

The project will be launched by July/August 2014. We have started with in-patient and out-patients departments. A formal announcement on this will be done by the end of this month.

Do you have any other expansion plans in Kerala?

We are in the process of expanding in Kerala under the brand Malabar Institute of Medical Sciences (MIMS). We identified Kannur and Perinthalmanna in Malappuram district for future expansion.

What are your pan-India plans?

We are in the process of acquiring hospitals in Bangalore, Hyderabad and Mumbai. The Bangalore announcement is in the final stages and will be disclosed soon.

Your expansion in GCC countries...

Aster DM Healthcare has about 1,200 beds under construction. In the next 12 years, the group aims to be a global player in healthcare. The strategy is not just to be in West Asia and India, but to spread to Africa. By 2017, the number of units under the Group is set to grow to 300. We're looking at further investment opportunities in Asia and Africa.

What is the company's financial position. Key targets for the next five years?

Our current turnover is around Rs 3,500 crore. India's contribution in this comes to 10-15 per cent. The group is looking at India as a major opportunity. The India expansion will be based on a 'hub & spoke' model focused on Tier-II and III cities. We would establish clusters here and aim to have about 4,000 beds at our facilities by 2015.