Apollo plans to hive off pharma business to unleash growth for new entity

With a large network of over 3,000 outlets, the pharmacy business is a significant pillar of Apollo Hospitals' financial growth

For the past three years, Apollo Hospitals Enterprise’s plan to raise around Rs 7.5 billion through rights issue from foreign investors to reduce debt and fund expansion had been struck due to regulatory hurdles. But last month, the group found a  remedy that will greatly benefit its pharma business. 

Apollo announced that it would hive off its pharma arm into a separate entity to unleash growth and comply with foreign investment norms. The Foreign Investment Promotion Board had asked Apollo to restructure its pharmacy arm into a separate business to meet the regulatory guidelines for multi-brand retail. 

“We have foreign investors in