Apollo To Invest Rs 30 Crore More In Duncan Gleneagles

Apollo Hospitals is planning to invest an additional Rs 30 crore into Duncan Gleneagles Hospital (DGHL), as per a proposal submitted before the financial institutions. This is apart from the Rs 17-19 crore it would be infusing to buy out the G P Goenka group from the hospitals company.

Chairman Pratap Reddy, Apollo group, said: "If we do get into the venture, we will put in whatever is needed to make sure it the best project in the city." He, however, declined to say more till his company had officially inked the deal.

The project, originally estimated to cost Rs 50.35 crore, has now cost the original promoters Rs 151.5 crore. Apollo had expressed interest in purchasing DIL's stake at 55 per cent of its value including the brand value of the diagnostic centre. The total investments made by the Goenkas is reportedly at Rs 32 crore.

Apollo plans to increase the original plan of a 225-bed hospital to a 350-bed facility. Currently, only the diagnostic centre is operational with four departments of pathology, radiology, cardiology and neurophysiology.

Phase I of the in-patient beds became operational in the first quarter of 2001. Apollo plans to complete the construction by December and start operating it by January 2002.

"All pending matters have to be settled between the original two partners before we come in. It is a good project for the city, and therefore a good proposal," Reddy said.

The hospital will then be renamed as 'Apollo Gleneagles', after buying out of the stake of the G P Goenka group. The Apollo group will also charge Gleneagles a fee to run the hospital long with a management fee.