Apollo HealthCo, a subsidiary of Apollo Hospitals Enterprise (AHEL), has revealed plans to open three new hospitals in the Indian cities of Mumbai and Bengaluru, reported Business Standard.

This announcement comes one month after the company secured a Rs24.75bn ($300m) investment from private equity company Advent International (Advent). Two hospitals, each with 500 beds, will be established in Mumbai with an investment of around Rs20bn while a 400-500 bed facility is planned for Bengaluru.

The expansion is part of AHEL’s long-term strategy to invest approximately Rs30bn over three years to add 2,400 beds across various locations.

AHEL chief financial officer Krishnan Akhileswaran said: “In all urban locations, we are looking at 400 to 500-bed facilities. The investment in Mumbai will be around Rs20m per bed, and we will be coming up with two 500-bed hospitals in Mumbai.”

Additionally, Keimed, a wholesale distribution company owned by the promoters of the Apollo Group, will merge with Apollo HealthCo.

Akhileswaran explained: “The merger is going to take 24 to 30 months. Apollo 24×7 will also become neutral to profitable in the next six to eight quarters,” referring to the company’s pharmacy business.

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He projected that with the addition of Keimed, Apollo HealthCo would become an Rs250bn business, forming an integrated pharma distribution company within three years.

AHEL reported a substantial increase in its consolidated net profit, with Rs2.58bn for the fourth quarter of the financial year 2023-2024, marking a 77% rise from the previous year’s Rs1.46bn.

Akhileswaran added: “Revenue saw a 15% growth. We have achieved almost a 31% growth in EBITDA and a 77% increase in PAT [profit after tax], driven primarily by profitability in (Apollo) HealthCo and AHLL.”

Looking ahead, Akhileswaran is optimistic about HealthCo’s trajectory towards profitability, especially in the online segment, over the next six to eight quarters.

Echoing this forward-looking vision, Apollo Hospitals Group chairman Prathap C Reddy said: “Going forward, Apollo Hospitals will continue to strengthen its endeavours to identify and introduce best-in-class, technology-enabled healthcare solutions to enhance patient outcomes and improve access to quality care.”