Parvathy Hospital has drawn up plans to spread its wings across Tamil Nadu and to African countries, to add 14 hospitals at an outlay of ₹96 crore, said a top official.
“We have planned our expansion in two phases,” said Sujay Sambamoorthy, chief executive officer, Parvathy Hospital. “The first phase will consist of acquiring four existing properties in Chennai,” he said.
“Acquiring eight hospitals in Tamil Nadu and setting up new ones in Uganda and Ghana will fall in the second phase,” he said.
The city-based hospital has only one facility now in Chennai with 120 beds providing trauma, orthopaedic and neuro care among others. It reported an income of ₹45 crore in FY18.
“By March 2019, we would have added four more hospitals in Chennai, for which we are in advanced talks with property owners. This would increase our bed strength to 250. We have set aside ₹20 crore and the expansion cost would be met through internal accruals,” he said. Besides, the hospital is also mulling setting up five urgent care clinics on the GST Road, each at a distance of eight kilometres, to cater to accident victims. This would cost ₹80 lakh.
These clinics would be set up close to the villages and townships on NH 45.
Regarding expansion in the second phase, he said the firm would require about ₹75 crore. About ₹60 crore was needed for acquiring eight hospitals and ₹15 crore for setting up two new hospitals in African countries. The hospital would seek the assistance of an investment banker by next fiscal to raise the required funds.
“We need around ₹75 crore, the amount can go up if it is a good acquisition. There would be some dilution by the promoters. Our vision is to have 500 beds by 2020,” he said.
Eyes tier 2 cities
Mr. Sambamoorthy said the firm was in advanced stages of acquiring an hospital in Coimbatore. It could be a joint venture or a 100% buyout, he said. Plans were also on to set up hospitals in tier 2 cities of Tamil Nadu. He added there was a good market for orthopaedics in Africa and that the firm would set up a new unit there instead of buying an existing facility.
