Aster DM Healthcare, a Bengaluru-based hospital and pharmacy operator, aims to be among the top three healthcare providers in India in the next few years, through a series of brownfield and greenfield initiatives, a top official said.
The company plans to add 1,500 beds by FY27 through both organic and inorganic routes as it estimates a 15% growth per annum, Aster DM Healthcare founder and chairman Azad Moopen told FE in an interview.
The expansion plans include setting up a 350-bed hospital — Aster Capital — in Thiruvananthapuram in the first phase by FY26 and another 200-bed hospital in Aster MIMS Kasargod. Further, additional beds will be added to existing hospitals, including Medcity, MIMS Kannur and Aster Whitefield. Another 100 beds would be added to Aster Medcity, taking the total to 600 beds, and another 100 beds post-2027.
“We are also scouting for suitable opportunities for inorganic expansion in the existing and other geographies,” he said, but did not provide further details. On the pegging order, the company is fourth in the country, and third among listed players, with Apollo Hospitals Enterprise topping the charts.
Earlier on November 22, Aster DM Healthcare had entered into an agreement to sell the stake held in its Gulf business to a newly-formed company Alpha GCC Holdings for $1.01 billion. This was part of its plan to separate businesses in India and the Gulf countries.
Aster DM Healthcare would sell a 65% stake held by its wholly-owned subsidiary Affinity Holdings in Aster DM Healthcare FZC, the holding firm of GCC businesses, to Alpha GCC Holdings. The Moopen family, which controls the Aster Group, will retain the remaining 35% stake. Alpha GCC will be owned by the promoter group of Aster India and funds managed by Middle East private equity firm Fajr Capital Advisors.
“The GCC and India healthcare markets are distinct and have different growth dynamics, warranting different business strategies. Upon completion, the separation of the India and GCC businesses, we will set up two distinct regional healthcare companies to focus on growing market demand and the priorities of patients,” he added.
Both the India and the GCC entities will be operated by separate management teams. This will also benefit from a ‘dedicated’ investor base that will aid growth in these markets. In India, the company’s focus will be to create a healthcare ecosystem – by setting up laboratories, clinics and pharmacies to support its hospitals – across geographies.
Later in January, the firm informed the bourses that it would distribute about 70-80% of the upfront consideration of $903 million from the November deal as dividend to its shareholders. The dividend distribution would be in the range of `110-120 per share.
“We expect the formalities of the deal to be completed in the coming 2-3 weeks and the proceeds to be transferred thereon. The final deal will be executed before the end of this financial year, and we are hoping that we reward our shareholders with a dividend by March 2024,” he added.
