Major capex drives likely in health care

A study of 144 hospital firms rated by Crisil shows significant bed additions being undertaken to capitalise on demand prospects

India’s Rs 4.8 lakh-crore health care delivery sector is likely to see major capex drives in the coming fiscals. Large corporate hospital chains (with revenue of over Rs 400 crore) are likely to invest in adding capacity by 25 per cent between FY18 and FY19, entailing an investment of about Rs 5,000 crore, which is 50 per cent more than the annual average capex in the past three fiscals ended 2017, said a Crisil study.

“We foresee sector revenues growing at a strong 15 per cent annually over the next three fiscals (2018-20), led by rapid expansion in health insurance coverage