Apollo Hospitals takes a bet on cosmetic clinics chain

Healthcare major Apollo Hospitals is planning a major foray into beauty enhancement market by setting up exclusive clinics.

With two clinics in Chennai and Hyderabad already kicking off operations, Apollo is now planning to set up another five to six clinics across the country including in the metros in the next one year.

The company is planning to invest about Rs30 crore on these clinics.
“We at Apollo have so far been focusing on the entire spectrum of life saving systems. Now, we are planning to focus on life enhancement. This is a major emerging opportunity in India though cosmetology and other related systems are already established in other parts of the world,” Sangita Reddy, executive director of Apollo Hospitals Group, said.

Though there are no specific numbers are available to quantify the market size, it is estimated that the cosmetic clinics would focus on a market worth $2.75 billion.

“In the US market, the beauty and life enhancement market is estimated to be at about $1 trillion. While about $500 billion is with the beauty shops, the balance is the market that has to be addressed by specialists since it involves certain procedures. In India, the market is evolving now and Apollo is gearing up to tap the opportunity,” Prathap C Reddy, Apollo’s chairman, said.

The cosmetic clinics being set up by Apollo would handle various procedures including body shaping, liposuction, rhinoplasty, hair restoration and face-lift.

The services would cost between Rs5,000 to Rs65,000.

On the viability of business, Sangita Reddy said, “the RoI (return on investment) is very high. We expect it to be upwards of 25%.”

For the cosmetic clinics initiative, Apollo has roped in a world renowned cosmetic surgeon S Armugam, who is certified by American Board of Plastic Surgery and practiced cosmetic surgery in Chicago for over 25 years.

Manuel Athayde, a doctor certified by the Brazilian Society of Plastic Surgery, has also joined Apollo to head the cosmetic surgery discipline.