India-based private hospital chain Aster DM Healthcare has unveiled plans to expand its Aster CMI multi-speciality Hospital in Bengaluru, Karnataka.
The company is investing approximately Rs2.5bn ($30m) in upgrading the Aster CMI Hospital.
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Expected to be completed by the fiscal year 2027 (FY 2027), the upgrade work will result in the addition of 300,000ft² of more space to the existing facility.
This will further increase the current bed capacity of 500 to 850 beds.
In addition, the latest move will bolster Aster DM Healthcare’s position in Bengaluru, where it will have a cumulative bed capacity of 1,602 beds.
Aster CMI Hospital, spanning an area of around 0.445 million square feet in Hebbal, Bengaluru, opened in 2016. It is a super-speciality hospital providing a range of primary to quaternary care services.
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By GlobalDataWith a broader vision for growth, Aster DM Healthcare further aims to add 1,700 beds by FY 2027, increasing its total bed count in India to more than 6,600.
The company’s strategy includes both organic growth and potential inorganic expansion to position itself as one of the top three integrated healthcare providers in India, coupled with a network of labs and pharmacies.
Aster DM Healthcare’s expansion strategy also involves a combination of brownfield and greenfield projects such as the upcoming Aster Capital in Trivandrum and Aster MIMS Kasargod, and increasing bed capacity at existing hospitals.
It is also exploring opportunities in other potential Indian markets, including Maharashtra and Uttar Pradesh, with a capital allocation of around Rs10bn earmarked for these projects.
Aster DM Healthcare founder chairman Dr Azad Moopen said: “The expansion of Aster CMI Hospital thus solidifies our unwavering commitment to Indian business. The overall India business earnings before interest, taxes, depreciation, and amortisation (EBITDA) for Aster DM Healthcare has grown at the rate of 35% compound annual growth rate over the past five years, which is reflected in the performance of the EBITDA margin as well.
“We expect strong performance to continue in the future, which will be supported by operational leverage on account of brownfield expansion and the implementation of various cost optimisation measures.”
In March, Aster DM Healthcare committed to investing up to RS9bn to expand its operations across India.
