Birthday Gift: Apollo Bags $160 M Hospital Project From Petronas

Chennai, Sept 18: | Updated: Sep 19 2003, 05:30am hrs
The Chennai-based Apollo Hospitals group will design, build and manage a $160 million hospital for Petronas in Malaysia. Apollo, which celebrated its 20th birthday on Thursday, is also close to inking a joint venture (JV) agreement with Abu Dhabi government for major healthcare initiatives. The company is also planning to add another 6,000 beds under its roof besides aiming for the second slot in the global private healthcare space in the next five years.

Addressing a press conference here, Pratap C Reddy, chairman, Apollo Hospitals group, said that Apollo has bagged the Petronas order to set up hospital in Malaysia after participating in a global competitive bidding process.

The project is to set up a 210-bed super specialty hospital in Malaysia with an estimated cost of $7,00,000 per bed compared to the going rate of $70,000 per bed.

The total project cost is estimated to be $160 million, he said.

The company is also close to sign a JV agreement with the Abu Dhabi government for managing healthcare project in the Gulf nation. Our proposal was accepted by the Abu Dhabi government. We expect to sign the JV agreement anytime, Mr Reddy said. However, he did not go into the details of the project.

Apollo is also planning to come out with special healthcare scheme for the non-resident Indians (NRIs) by which the hospital group will provide treatment for any ailment to the NRI for an annual subscription fee of $400. The board of directors has just sanctioned the project. Though no insurers are ready to underwrite the project, we will manage it our own, Mr Reddy said. Under the scheme, the hospital would incur all the expenses of the patient including the NRIs flight charges.

Dr Reddy said that the group is seeing its topline growth driven by all the segments it is present, including its core hospital business, pharmacy etc.

New initiatives such as its foray into medical business process outsourcing would also pay dividend for the company in the near future, he added.

Earlier, in a presentation to the media, group director Ms Sangeeta Reddy said that Apollo, with its 6,200 beds has emerged as the third largest privately run hospital group and will add another 6,000 beds in the next few years.