Apollo Health and Lifestyle Limited (AHLL), a subsidiary of Apollo Hospitals Enterprise, plans to invest the ₹450 crore that it raised from the International Finance Corporation (IFC) in December 2016 to expand operations.
“We are planning to widen the presence of our formats in the country,” said Neeraj Garg, CEO, Apollo Health & Lifestyle Limited. “With the kind of expansion planned we will be investing the capital raised within the next three years.” The IFC, an arm of the World Bank, had acquired a 29% stake in AHLL.
AHLL runs various primary care formats like the Apollo Clinics, Apollo Sugar, Apollo Diagnostics, Apollo cradle, Apollo Spectra. It had recently introduced a new format for the infertility treatment called as Apollo Fertility.
A major portion of the investment will be made into its fastest growing retail segments—Apollo Diagnostics and Apollo Cradle. The diagnostic centre and pathology lab — Apollo Diagnostics is the fastest growing format for the company.
The firm currently operates 200 collection centres and 42 labs which would be widened to 1,000 collection centres and 150 labs in the next five years. It also plans to expand its maternity hospital network to 25 from the present 12.
AHLL plans to increase the Apollo Fertility centre and Apollo Clinics from five to 12 centres and 79 to 150 respectively in the next five years. “Out of the total ₹450 crore raised, about ₹250-₹300 crore will be utilised to set up Cradle and Apollo fertility,” he said.
“We definitely need more capital to fuel growth, but it is too early to say how we will raise the fund.”
Apart from the expansion of networks it is also planning to unveil a new product for the users of Apollo Clinic which will help patients’ access outpatient treatment for a year by paying a premium.
For the year ended March 31, 2017 the company reported revenue of ₹430 crore.
