Apollo to partner JP Morgan for Mumbai hospital

The Apollo Hospitals Group is partnering JP Morgan for its multi-specialty hospital project in Mumbai, which is expected to be built at an investment close to Rs 700 crore.

The proposed Mumbai project is part of a series of new hospitals planned across the country, including Bangalore and Bhubaneswar by Apollo. The healthcare major is also mulling setting up a hospital either in Allahabad or Varanasi in Uttar Pradesh.

The Mumbai joint venture project was currently under negotiations. JP Morgan is keen to take 60% equity in the project, Pratap C Reddy, chairman of Apollo Hospitals, said here today.

Rattled by the recent acquisition of its hospital by a local player in Sri Lanka, the Apollo group, however, is planning to alter the equity model of its future joint venture projects, both in India and abroad.
 
While reiterating the group's strategy of roping in local players wherever possible in all the new projects, Reddy expressed concern over the Sri Lankan development where the group lost its management role in the hospital despite having a 15-year agreement on account of  the takeover by the Sri Lanka Insurance Corporation (SLIC).

"In the light of these developments, we are now planning to increase our stake in the projects where Apollo owns less than 51% equity in a phased manner," the Apollo chairman said following  the announcement of a new research initiative on heart ailments in the Asian subcontinent.

Besides the ongoing plans, the group is also planning to set up hospitals in Europe and American continent, which are expected to act as a channel for patients seeking access to not-so-expensive health services being offered in India by the Apollo Group.

When asked about the investment requirements, he said funds were not an issue as the entire world recognised the efficiency of the Apollo group in the healthcare sector.