Apollo Hospitals to raise capacity 25%

Healthcare major Apollo Hospitals is increasing capacity by one-fourth, or 2,400 beds, at its various hospitals from the current 9,000 beds, The expansion would cost the company Rs1,500 crore.

Also, Apollo is also expanding its footprint in the international market. The hospital chain is currently setting up its second hospital in Bangladesh at Chittagong. It already operates a 450-bed hospital in Bangladesh. The second facility of 250 beds is estimated to cost about Rs125 crore.

“We are expecting in the initial phase 250-bed hospital costing around Rs125 crore. I think we need to acquire a better land to approach that site. Once that is settled this will also be completed within 18 months (from then),” Pratap C Reddy, Apollo’s chairman, said.

According to Reddy, there are indications of the company’s performance improving over the remaining three quarters in the current year compared with the first quarter.

Apollo registered a profit of Rs54.5 crore in the quarter ended June 30, 2011, up 30% over corresponding period in the previous year. Apollo’s total revenues in the first quarter stood at `723.4 crore up 22.4%  a year ago.

“Since there were elections in Tamil Nadu and West Bengal we could not do well in those two places. Going forward, I think there is going to be significant growth in both topline and volume, and, more importantly, care that we give to people,” he said.

“We already have six Apollo Reach hospitals (for Tier II and III cities) and another six or seven are under construction. We hope that we will be able to build a large segment of Reach hospital,” he said.