Fortis to set up 27 more hospitals using IPO gains

To pump in Rs 800-1,000 crore over a period of four years.

Fortis Healthcare Ltd, one of India's largest private healthcare companies, is likely to invest Rs 800-1,000 crore over a period of four years in setting up 27 hospitals across India, taking the total number to 40.

The funds will be arranged through internal accruals, proceeds from initial public offer (IPO) and by diluting and restructuring its subsidiaries.

In addition to hospitals, the company plans to set up 10 health cities across India. Each of the proposed city will be spread over about 50 acres and is likely to attract an investment of Rs 500-600 crore.

It will have a medical college, a dental college and a nursing institute, along with a hospital and a health management institute, etc.

In an interaction with Business Standard, Fortis Healthcare CEO & MD Shivinder M Singh said: "We are coming up with a 150-bedded multi-speciality hospital in Navi Mumbai with a project cost of Rs 60-70 crore. Also, we are setting up a 258-bedded (in first phase) hospital in New Delhi with centres of excellence in cardiac, orthopaedics, neuroscience, gastroenterology and renal and genito-intestinal diseases. It is expected to commence operations in 2008-09. Also, we are coming up with a 950-bedded medicity in Gurgon with an estimated project cost of Rs 1,000 crore, which will be invested in phases."

The company has plans to increase the number of beds from 2,300 to 6,000-7,000 beds in the next four years after the expansion.

The Ranbaxy-promoted company has acquired land to set up health cities in Gurgaon, Lucknow, Ahmedabad, Jammu and Mumbai.

Besides, it has plans to set up two health cities each in Punjab and Rajasthan and one in Goa, Indore and Bhopal.

"We have floated a separate entity for foray into health cities as the colleges cannot be a part of Fortis Healthcare since the Medical Council of India does not permit education for commercial purposes," Singh said.