Apollo Hospitals achieves Rs 1.5K cr financial closure for expansion

The Chennai-based Apollo Hospitals Enterprise Ltd has finalised financial closure for their Rs 1,500 crore expansion plan, to add 2,000 beds.

Speaking to reporters here today, Prathap C Reddy, vice-chairman, and Suneeta Reddy, executive director (finance), today said the group had raised Rs 300 crore through equity, Rs 200 crore through internal resources, Rs 120 crore through family warranty and rest of the money through loans. The cost of adding one bed is about Rs 50 lakh, said Reddy.

Of the Rs 1,500 crore plan, Rs 500 crore has already been invested in 2008-09 to acquire lands and for adding 200 beds (to make a total of 7,450). In 2009-10, the group will add another 844 beds. The remaining part of the plan would be done by 2010-11.

The group is also planning to set up a medical college in Chittoor district of Andhra Pradesh and in Madurai, Tamil Nadu, on 100 acres and 50 acres of land, respectively.

“We have applied for a licence. The colleges will be operated along with a foreign partner.”

The hospital chain is also planning to set up an Apollo Health City in Hyderabad, with an investment of Rs 150 crore. It is also in the process of setting up a multi-specialty hospital at Bhubaneswar and a Children’s Hospital at Chennai.

Net profit up 38%
Apollo Hospitals Enterprise has reported a 38 per cent increase in the net profit for the quarter ended March 31, at Rs 29 crore as compared to Rs 21 crore a year earlier.

Total income increased to Rs 391 crore from Rs 304 crore during the last quarter, an increase of 28 per cent. The dividend recommended this year is 65 per cent.