Pune: Apollo Health and Lifestyle Ltd. (AHLL) a subsidiary of Apollo Hospitals Group, established with the aim of bringing healthcare of international standards within the reach of every individual in the country, today announced its intent of raising Rs. 500 Cr to fund its extensive expansion plans. AHLL is in talks with global private equity funds & aims to complete the equity dilution exercise before the close of this year. The company is expecting to dilute around 20% of its’ equity to new investors.
This decision represents a strategic intent by AHLL to expand its network of across India, where it already enjoys a strong foothold through the presence of its varied speciality formats in 17 states with 205 customer touch points across the country. AHLL had made a significant acquisition earlier this year by acquiring Nova Speciality Hospitals, since rebranded as Apollo Spectra Hospitals.
Commenting on this move, Neeraj Garg, CEO – Apollo Health and Lifestyle Ltd. said, “Currently clocking revenues of around 400 Cr, we are focussing on growing our primary care offerings – Apollo Clinics, Apollo Diagnostics and Apollo Sugar & our speciality formats – Apollo Spectra & Apollo Cradle. We have multiplied revenues 4 times in the past 3 years and are targeting to grow at the same rate in the next 3 years. We are already leaders in most of the segments we operate in, and the funds will help us expand our network and enter new markets where we see a strong demand for the international standards of healthcare that we provide.”
“We currently serve over 5000 customers daily, and with this next round of expansion, we shall be able to extend the Apollo brand of clinical expertise and ‘tender loving care’ to many more people in the cities we serve and also extend to new cities.” he added. “The company is always open to acquisitions that are synergistic and reasonably valued,” he commented with reference to whether these funds would be used to grow through acquisitions.
The healthcare segment has seen tremendous growth in the last decade, growing at the rate of 25%. AHLL having leadership across segments is strongly poised to capitalize on this growth & strengthen its leadership position. AHLL’s portfolio is uniquely positioned to cater to the healthcare needs of the rising Indian urban middle class. Currently, Apollo Clinics division has 65 clinics spread across the country and is aggressively looking at setting up new clinics whilst also expanding its’ diagnostic division which will be in all major district HQs of the southern states this year. With 10 Spectra hospitals across the country and 10 Cradle hospitals, AHLL expects these two formats to aggressively drive growth in the next few years. In addition, over the next three years, AHLL is looking at adding another 10 Cradle hospitals across the country.
AHLL’s strategy is to provide the complete continuum of care so that customers’ can experience the Apollo brand of care seamlessly from home to the tertiary care hospitals.
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