Max Healthcare Institute, a private hospital chain in India, is purchasing a land parcel for the development of a new hospital in Lucknow, Uttar Pradesh, India.
The announcement comes after the hospital chain’s board of directors approved the acquisition of the land parcel on 24 February.
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The approved 21,946m² site, obtained through an e-auction on a freehold basis, is expected to cost around Rs1.67bn ($20.14m), which is inclusive of stamp duty after a successful bid by Max Healthcare.
Max Healthcare said that this land has the potential to house a 500-bed hospital with an estimated 8 lakh square feet of built up area.
The company looks to add this proposed bed capacity in a phased manner, over the next ten years.
Max Healthcare plans to finance the land purchase through internal accruals.
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By GlobalDataAccording to the company, the latest move is a key component of its growth strategy to expand its presence in Lucknow.
This expansion is driven by high capacity utilisation rates across its network hospitals, which surpassed 73% in the third quarter of fiscal year 2024.
Currently, the hospital chain operates 17 healthcare facilities across various Indian regions, including Delhi, Punjab, Haryana, Maharashtra and Uttarakhand, with a total capacity of more than 3,550 beds as of 31 December 2023.
Notably, nearly 85% of Max Healthcare’s bed capacity is located in metro and tier one cities, underscoring its focus on serving urban populations.
The development comes two weeks after Max Healthcare Institute announced the acquisition of Alexis Multi Speciality Hospital in a Rs4.12bn deal.
Alexis Multi Speciality has 200 beds, which can be expanded to up to 340 beds.
It offers a range of services including gastroenterology, neurosurgery, transplants, cardiology and other diagnostic facilities.
