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| Vydehi Hospital for Rs 200 cr expansion |
| Raghuvir Badrinath & Ravi Menon / Chennai/ Bangalore Jul 20, 2009, 00:51 IST |
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Set to take over Lakeside Hospital
Vydehi Institute of Medical Sciences (VIMS), a Bangalore-based Rs 100-crore multi-speciality hospital is embarking on a Rs 200 crore expansion agenda aimed at doubling its patient handling capacity. The hospital, run by a diversified business group owned by D K Audikesavulu, has 1,150 beds and is looking to double this in two years time.
The institute which is situated in Bangalore’s Whitefield, next to Satya Sai Hospital, has 75 acres of land. The upcoming expansion will see the hospital developing into a full-fledged Health City with a number of disciplines added in its portfolio.
According to industry information, VIMS is understood to be scouting for a joint venture partner and has had discussions with the Parkway Group of Singapore in this connection.
Audikesavulu confirmed that while VIMS has had discussions with various strategic and private equity players, it would be prema-ture to confirm the specific route which his group would take to further expand. “Even if the external funding did not materialise, we still have the resources to mobilise funds for expansion,” he added.
Besides VIMS, the business group owns Mallya Hospital in Bangalore and the Medinova chain of diagnostic centres. It is now set to acquire the 200-bed Lakeside Hospital in Bangalore.
“We are consolidating our presence in the healthcare sector and this acquisition is a step in that direction,” Audikesavulu noted.
Industry sources indicated that the business group is looking at structuring a holding company in which there may be some private equity infusion in the near future. “As we understand, they are planning a Rs 500-crore expansion capex spread over two phases in the near future. They will surely require external funding to this end,” investment banking sources noted.
Expansion activity in Bangalore’s healthcare sector has been marked by efforts at raising funds by companies, but only a few have succeeded. While Manipal Hospitals has been trying to raise Rs 300 crore in capex over the past year or so, Narayana Hrudayalaya managed to raise Rs 400 crore from AIG and J P Morgan a year ago.
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