Healthcare provider Aster DM looks at asset-light plan for India expansion

It is rolling out a 350-bed multi-specialty hospital in Bengaluru next year with a capex of Rs 200 crore

Health care services provider Aster DM Healthcare is looking at an asset-light strategy to expand its footprint in India.

While the NSE-listed company will provide the manpower and management in this model, the intermediary partner will bring in the investment for the hospital infrastructure and medical equipment. “This would be a zero capex model where we would be the hospital operator,” said Harish Pillai, chief executive officer, Aster India, Aster DM Healthcare.

The India business of Aster Healthcare accounts for 17-18 per cent of the total global revenue, which the company wants to increase to 25 per cent in the next 2-3 years. For this, it is looking at scaling up newer verticals such as diagnostics, teleconsultations and home care.

Currently, the company has set up two diagnostic labs — one each in Kerala and Karnataka — and is in the process of setting up mini satellite labs to cater to a larger number of customers. It will enter neighbouring states with the diagnostics business in the next financial year.

Betting on a digital transformation strategy, the company will roll out a platform called One Aster by the second quarter of next year, which will serve as a single portal to serve all hospital needs, including appointments, lab results, payments, discharge, and home visits by health experts.

“Thanks to Covid, we have learnt the importance of the brick and click model, under which a customer can choose to either come to the hospital or avail of the services from home either through teleconsultation, home care. We are building that ecosystem for patients at Aster,” said Pillai. 

The company is also rolling out a 350-bed multi-specialty hospital in Bengaluru next year with a capex of Rs 200 crore. The hospital, to be rolled out by the end of FY22, will also have a dedicated block for women and child care.

Currently, Aster DM Healthcare has a network of 13 hospitals and nine clinics operating across Karnataka, Kerala, Telangana, Andhra Pradesh, and Maharashtra. “Our focus will now be to sweat our assets and improve capacity utilisation in the country before going for any further expansion,” said Pillai.