Apollo plans to set up 50 hospitals

Apollo Hospitals, Asia's largest healthcare group, is planning to expand its operations by setting up 50 hospitals across the country, including many in tier-II cities. It will invest Rs 20-35 crore in each of the facilities.

Apollo sees a good opportunity in the smaller cities due to huge latent spending power and insufficient quality healthcare providers and hospitals.

"Apollo has firmed up plans for hospitals in Vishakhapatnam and Bhubaneswar, as of now." said Sangita Reddy, executive director, Apollo Hospitals. The other hospitals that have been finalised will be set up in the metros.

Apollo has envisaged an investment of around Rs 848 crore to fuel its expansion plans. The group plans to raise $104 million at a price of around Rs 605 a share through the issue of preferential shares to funds advised by Apax Partners, according to a filing to the Bombay Stock Exchange.

The extraordinary general meeting (EGM) will be held on October 6 for securing the shareholders' approval, Apollo. reported revenues of around Rs 900 crore last year.

Apax Partners is a UK-based private equity and venture capital firm, operating in Hong Kong, China, India, the UK, the US, Europe and Israel.

Apollo has ambitious plans for Bangalore. It plans to start a hospital in Sheshadripuram at an investment of Rs 38 crore and another at Whitefield on the outskirts of the city, for which it has earmarked Rs 35 crore.

It is in the process of finalising the land in Whitefield. It is also planning to start hospitals in Hosur and Hubli, Karntaka.

Meanwhile, the group has signed an memorandam of understanding (MoU) with the Jindal Group for running Jindal's hospital in Hospet.

As part of its retail healthcare expansion, Apollo Clinics is planning to set up a network of at least 100 clinics in the next couple of years.