Apollo Hospitals in talks with Yash Birla Group for Mumbai foray

Written by Reghu Balakrishnan | MG Arun | Mumbai, Oct 10 | Updated: Oct 11 2007, 05:38am hrs
Apollo Hospitals Group, the largest hospital chain in Asia, is learnt to be in talks with the diversified Yash Birla group for setting up hospitals in Mumbai. The Rs 2,500-crore Yash Birla Group is setting up a 200-bed hospital in Thane, and is looking for a tie-up with a major hospital group to assist them in managing the new hospital. The new multi-speciality hospital coming up at the Mumbai suburb would cost about Rs 125 crore and construction is expected to start by the end of this year.

A source close to the development said, The Yash Birla Group is more into auto, engineering and power solutions than sectors like hospital and healthcare. Since we wanted to have a major presence in the hospital industry in Mumbai, we are keen to tie-up with a major hospital group who can assist us. We are in talks with the Apollo group, which is vying for a presence in Mumbai. Apollo has plans to set up 2-3 hospitals in Mumbai with Rs 700-crore investment. The group has reportedly acquired land in Navi Mumbai and Thane for its projects. Apollo Hospitals officials could not be reached for comments.

The Yash Birla Group is also planning to expand its hospital situated in Nashik. It has also another hospital in Pilani. The new hospital will be built under the company, Birla Infrastructure.

Meanwhile, the group, which has acquired 50% stake in a South India-based ayurvedic company, is planning to set up a total of 14 spas across the country by the first quarter of next financial year under the name of new JV company. The JV partner already has 10 spas in South India. The group is investing Rs 50 crore for health & wellness plans this year. Also, the group is exploring an acquisition of a south-based ayurvedic company that could be in the range of $100-200 million.