Spero to invest Rs 1,400 cr by 2021

The , a healthcare chain managed by Soalni Healthcare, plans to set up 50 hospitals across the country over a period of 10 years at an estimated investment of Rs 1,400 crore in Tier-2 and 3 cities.

"We are looking to set up a chain of 50 hospitals across the country. The chain will be a mix of 30 greenfield and 20 leased or managed hospitals. We expect an investment of Rs 40 crore and Rs 10 crore in each of greenfield and leased hospitals, respectively," Spero Group of Hospitals chairman and managing director Sanjiv Malik said.

This translates into an estimated investment of Rs 30 lakh per bed at the new hospitals that the company has planned.

"We will have 125 to 150 beds in each hospital. It will not have five-star luxuries, but will be at par with the best hospitals in the country in terms of cleanliness, service and amenities," Malik said.

He said Spero is working to provide healthcare at the minimum cost by cutting on five-star services that are not required by a patient and often add to the cost of treatment in a patient's bill.

"This does not mean that we compromise on the quality of treatment. Here, we have treated patient in critical conditions like sulphas poisoning, brain injury and patients with 90% burns. There is not a single example in the world where a patient has survived after consuming sulphas," Malik said.

He added that Spero had leased a hospital in Palwal as a pilot project and within 18 months, achieved break-even.

"For our further expansion, we have tied up with an investment firm. The funds will be raised in the ratio of around 60:40, with the larger part being debt and the rest will be through allotment of equity," Malik said.

Spero Group plans to open five new hospitals over the next 12 months. It is looking to set up these hospitals at Mathura and Vrindavan, in Uttar Pradesh, besides Haridwar (Uttarakhand), Bhiwadi (Rajasthan) and Karnal district of Haryana.

"Three of these hospitals will be greenfield," Malik said.