Emami plans to invest Rs 1000 cr in medicare

Kolkata-based Shrachi and Emami groups plan to invest Rs 1,000 crore in medicare services over the next five years.

Of the total investments, the two firms will raise Rs 300 crore through internal resources, while the rest will be raised through debt. The two groups plan to set up a number of tertiary and secondary care hospitals across the country, with focus on the eastern region.

Speaking to Business Standard, Shravan Todi, chairman, Shrachi group, said, "The hospitals will be built under the existing brand of Advanced Medicare Research Institute (AMRI). We are currently in the process of lining up investments."

At present, Shrachi and Emami are jointly promoting a 200-bed multi-speciality hospital (MSH) near Khandagiri Chowk in Bhubaneswar. The detailed project report (DPR) is being worked out.

Orissa government has allotted 4.5 acres of land for setting up the MSH at Khandagiri. Shrachi and Emami plan to invest around Rs 70 crore in the initial stages for setting up the MSH.

D N Agarwal, executive director, AMRI Hospitals, said, "The MSH at Bhubaneswar is likely to be completed in the next couple of years. Construction and civil work will shortly begin." The hospital will basically provide advanced medical treatment.

Todi said, "Provisions might also be made for free beds in the hospital."

AMRI plans to have over 1000 beds across its entire hospital chain in the next few years and emerge as one of the biggest in the country.

Of the total, the 525-bed facilities would be completed in the next couple of years.

A 200-bed hospital each will be constructed at Bhubaneswar and Kolkata. Besides, the bed capacity at the Dhakuria centre will be increased to 435 from the existing 370.

Two years ago, Shrachi and Emami group took over Suraksha medical centre thereby adding another 170 beds to AMRI's existing capacity. AMRI currently has a bed capacity of around 540 in Kolkata.

Emami's current turnover is about Rs 1,200 crore, and the group's net profit is estimated at over Rs 200 crore in 2006-07.