Max to invest over ₹1K cr in 450-bed Pune hospital, eyes West India growth

With an eye to expand in West India, Max Healthcare on Thursday said it will invest around Rs 1,020 crore to build a 450-bed greenfield super speciality hospital in Pune, announcing its entry into the market.

 

This will be Max Healthcare’s fourth facility in Maharashtra after the 350-bed Nanavati Max Hospital situated in Mumbai and 212-bed Alexis Hospital in Nagpur.

 

The healthcare chain had also signed an agreement to set up a 500-bed greenfield hospital in Thane. The Pune facility will be Max’s second greenfield investment in West India.

 

Max said in a regulatory filing on the bourses that the facility is expected to be commissioned in the next three years, while the proposed capacity of 450 beds will be added over the next four years.

 

The Pune hospital will be built on a 1.68-acre parcel of freehold land owned by realty firm Yerawada Properties, whose 100 per cent equity stake will be acquired by Max.

 

Max added that the total investment is expected to be Rs 1,020 crore, which includes Yerawada Properties share acquisition, construction, equipment cost, stamp duty and registration charges.

 

The mode of financing would be a mix of internal accruals and term loan.

 

Commenting on the choice of location, Abhay Soi, chairman and managing director at Max, said that Pune is one of India’s fastest-growing urban centres with a strong economic base and rapidly expanding middle-class population.

 

“Our entry into Pune is a strategic milestone for Max Healthcare and aligns with our long-term vision of expanding our presence in key healthcare markets across the country,” he added.

 

While the company has been looking to strengthen it in the western region, people in the know told Business Standard that the healthcare company is not targeting expansion in states other than Maharashtra right now.

 

Max operates around 5,200 beds across the country, of which 750 beds are in Mumbai and Nagpur, including a new tower at Nanavati Max Hospital in Mumbai.