Aster undertakes Rs 250-cr expansion in Bengaluru, plans to add 350 beds

Aster CMI Hospital, located in Hebbal, Bengaluru, spans 445,000 square feet. With this development, the company is strengthening its presence in Bengaluru, bringing its total bed capacity to 1,602

Aster DM Healthcare has undertaken an expansion for Aster CMI Hospital in Bengaluru, adding 300,000 square feet of infrastructure.

This expansion will raise the hospital's bed capacity from 500 to 850.

The multispecialty project involves an investment of Rs 250 crore and is expected to be commissioned by financial year 2027 (FY27).
 

Aster CMI Hospital, located in Hebbal, Bengaluru, spans 445,000 square feet. With this development, the company is strengthening its presence in the city, bringing its total bed capacity to 1,602.
 

“We are running our existing hospital (Aster CMI) at full capacity. Hence, we have decided to expand the infrastructure to accommodate the growing needs of patients. Aster CMI Hospital has already set new benchmarks for healthcare excellence. And, this expansion cements our promise to make quality healthcare easily accessible to the people in the region,” said Nitish Shetty, chief executive officer (CEO), Aster DM Healthcare, India.

“This expansion of Aster CMI Hospital is expected to have a positive impact on both earnings before interest, taxes, depreciation and amortisation (Ebitda) and profit after tax (PAT) as it involves minimal fixed costs for operating the additional beds. We do not expect any margin dilution in the short term as well. Aster DM Healthcare is poised to make a significant impact on the healthcare landscape with its focus on strategic growth, patient-centric care, and expansion in existing and new geographies,” Shetty added.

Aster DM plans to add 1,700 beds in India by FY27, bringing its total bed count to around 6,600 through organic growth. It also plans further growth through inorganic means.

This plan includes a mix of brownfield and greenfield projects, such as Aster Capital in Thiruvananthapuram and Aster MIMS Kasargod, as well as raising bed capacity at existing hospitals.

Additionally, the firm is targeting potential markets in Maharashtra and Uttar Pradesh. The capital allocation for this expansion is around Rs 1,000 crore.