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Speaking to reporters on the sidelines of the 33rd annual general meeting of AHEL, he said: “As far as the second generation — the four daughters — are concerned, the framework has been completed. The framework for the third generation is going on and might complete during the course of this year.”
The hospital group’s family council has the promoter and his four daughters, with some external advisors as members, to take care of the induction and role of the next generation of the promoter's family in the hospital's management.
The family council advisors are talking to the third generation members to know whether they are interested in joining the hospital group or would prefer other business sectors. “Today's generations, aspirations are higher. They think differently in a bigger way,” Reddy noted.
While some members in the third generation have completed their education and are ready to join the family business, some are still studying. The advisors would look and then decide on how to go forward, since it should be an overall framework including everybody in the family, Reddy added.
The health care sector veteran has 10 grandchildren, of whom three or four are already working with the hospital in various projects. For instance, his first grand daughter Sindoori, daughter of AHEL Managing Director Suneeta Reddy, has been involved in and was instrumental for the women and children hospital of the Group. His second grand daughter Upasana, daughter of AHEL Executive Vice Chairperson Shobhana Kamineni, is leading initiatives on wellness, which fits in with the Group's upcoming initiative on preventive healthcare and the newly launched concept of 'Priceless' body, which says that the human body is worth $6,000 billion and people should take care of their body to avoid any health issues.
AHEL Executive Vice Chairperson Preetha Reddy's son Karthik is also engaged in some of the projects in Apollo Hospitals Group. Anandit, son of AHEL's Joint Managing Director Sangita Reddy, is also working on some of the projects with the Hospitals, under which he has prepared a new healthcare mobile application, which would be brought in by Apollo Hospitals soon.
There is also a Kit to be made available for patients in their home, which could send ECG, blood report and enable them to talk to the doctor from home itself. Very soon, with the 4G comes in, the patient can talk to the doctor through video call on the phone. These communication initiatives using technology are expected to help the company to reach more patients across the country. The application would be ready for launch in October, he said.
It may be noted that the hospital group has announced formulation of a family council, with the promoter and his four daughters along with some external family council advisors as members, to take care of the induction and role of the next generation of the promoter's family in the hospital's management.
Expansion plans
The company is expected to add more hospital beds in the near future, and plans are to add 1,700 beds with an investment of Rs 1,700 crore in next two to three years. This include setting up a cancer therapy centre with Proton Technology, which would cost around Rs 400 crore. The company is also open to look at acquisitions where it does not have presence, said Suneeta Reddy, managing director of AHEL.
Speaking to the reporters in the sidelines of the AGM, she said that the company is looking at expansion and would look at fund raising to meet the investment requirements. She added that the company is open to acquisitions, in areas where it does not have presence, and which has an IRR of 20%.
While stating that the company is looking at Real Estate Investment Trusts (REIT) as an option to leverage the opportunity to expand the infrastructure, Pratap C Reddy said that the company and the healthcare forum are asking the government to consider this mode to help the small scale hospitals to expand their infrastructure.
"The government should give it to the frontline of defence is these 50-bed nursing homes. I am pleading with the government more on this and hope that we will impress them," he added.
