‘We plan to add 1,700 beds by FY27; 57% beds likely in tier 2/3 cities'

New Indian Express

4 hours ago

Kochi- and Dubai-based Aster DM Healthcare, founded by Dr Azad Moopen in 1987 with a single clinic in Dubai, expects to complete the takeover of the Blackstone and TPG-backed Quality Care Hospital by the fourth quarter of this fiscal. The takeover will result in the third largest hospital chain Aster Quality Care, after Apollo and Fortis, with 38 hospitals across four brands -- Aster DM, Care Hospitals, KIMS Health and Evercare -- offering over 10,150 beds spread across 27 locations. Aster Quality Care is now jointly controlled by the Moopen family holding 24% and Blackstone owning 30.7%. In an interaction with Benn Kochuveedan of TNIE, Dr Azad Moopen shares his plans and expectations from the largest deal that his group has done. Excerpts:
When do you see the merger of Quality Care Hospital getting completed? What are the targets in terms of revenue, profit expansion etc?
The merger brings together four leading healthcare brands — Aster DM, Care Hospitals, KIMS Health, and Evercare — forming one of the largest hospital chains with 38 hospitals and over 10,150 beds across 27 cities. Financially, the merger strengthens the balance sheet and cash flow, enabling accelerated expansion plans.
We aim to increase bed capacity to around 13,300 beds by FY27, further expanding our reach into tier 2 and 3 cities, providing a platform for sustained growth in the future. The merger is expected to be concluded by Q4FY26, with benefits expected to start flowing in from early FY27.
What are the synergies you see from the merger?
The merger unlocks significant synergies that will drive growth, operational efficiencies, and enhanced patient care across the combined network. Integrating our extensive hospital portfolios will allow the new entity to benefit from economies of scale by negotiating better terms with suppliers, reducing costs, and streamlining inventory management that will lower operational expenses and improve margins.
What is the capex plan for fiscal 2026, especially in light of the merger-driven expansion? How many more hospitals and beds to come up this fiscal?
We plan to add 1,700 beds by FY27, taking the total bed tally in India to over 6,800 through the organic route and will further look for expansion through the inorganic route. Our overall capital allocation for expansion across the domestic market is Rs 1,400 crore, of which we have already spent around Rs 350-400 crore.
You have announced a Rs 850-crore investment in Kerala. What is the strategic thinking behind focusing so much on Kerala, which is often seen as a relatively mature market?
Kerala is now poised for a significant transformation with a planned investment of Rs 850 crore over the next three years. This expansion will be anchored by two major greenfield projects: Aster Capital Trivandrum, a 454-bed tertiary care facility, and Aster MIMS Kasaragod, a 264-bed multispecialty hospital. In addition, our flagship hospital, Aster Medcity in Kochi, is undergoing a substantial upgrade. By FY27, our total bed capacity in Kerala is expected to reach 3,453, marking a milestone in our journey of delivering quality healthcare and driving sustainable growth.
Affordable healthcare remains a chimera for the average citizen. What is Aster doing differently on this front?
To balance affordability and sustainability, we centralise complex procedures in larger hospitals, while smaller units focus on primary/secondary care. By FY27, as much as 57% of our planned bed additions will be in tier 2/3 cities, reinforcing our commitment to these regions. Technology is key to bridging gaps, with telemedicine set to grow at 20.7% annually till FY30, reaching $15.1 billion. Our digital health arm is expanding tele-ICU, teleradiology, AI-driven diagnostics, IoT monitoring, and EMR platforms to enhance accessibility, affordability, and quality care nationwide.
What are the digital initiatives of the group?
Some of our technology-driven, patient-friendly initiatives include the introduction of the Aster Health app that offers appointment bookings, e-pharmacy, and access to digital health records. We have come up with AI-powered diagnostic solutions, including the Carpal Tunnel Syndrome detection tool in collaboration with the Indian Institute of Science. We are also expanding the home healthcare services under Aster@Home, providing in-home consultations, diagnostics, and physiotherapy, catering to India's growing elderly and chronic care populations.