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Apollo Health and Lifestyle in talks with global PEs to raise Rs. 500 cr for next phase of growth
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Our Bureau, Bengaluru
October 24 , 2015
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Apollo Health and Lifestyle Ltd. (AHLL), a subsidiary of Apollo Hospitals Group has announced its plan to raise Rs.
500 crore to fund its expansion plans. It is currently in talks with
global private equity funds and aims to complete the equity dilution
exercise before the end of this year. The company is expecting to dilute
around 20 per cent 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.
“Currently clocking revenues of around Rs.
400 crore, we are focusing 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,” said Neeraj Garg, CEO -
Apollo Health and Lifestyle Ltd.
“We currently serve over 5,000
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. 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 per cent. AHLL having leadership across segments is strongly
poised to capitalise 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.
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