The hospital will increase its bed capacity from existing 500 to 850 beds by FY2027
Aster DM Healthcare (Company), has announced its expansion plan for Aster CMI Hospital, a multispecialty hospital in Bengaluru. The unit will have an additional infrastructure expansion of 300,000 sq feet thereby increasing its bed capacity from the existing 500 beds to 850 beds.
The Company will invest around Rs. 250 crore to upgrade the existing facility and is expected to be commissioned by FY2027.
Dr Azad Moopen, Founder Chairman, Aster DM Healthcare said, “ The overall India business EBITDA for Aster DM Healthcare has grown at the rate of 35 per cent CAGR over the past 5 years, which is reflected in the performance of EBITDA margin as well. We expect the strong performance to continue in the future, which will be supported by operational leverage on account of brownfield expansion and implementing various cost optimisation measures.”
Dr Nitish Shetty, CEO, Aster DM Healthcare, India said, “We are running our existing hospital [Aster CMI] at full capacity, hence we have decided to expand the infrastructure to accommodate the growing needs of patients..”
The Company plans to add 1700 beds by FY27 taking the total bed tally in India to 6600+ through the organic route and will further look for expansion through the inorganic route as well to achieve its aim of becoming the top three integrated healthcare providers in India along with a strong presence of labs and pharmacies in the geographies that Aster has a presence in. The plan encompasses a mix of brownfield and greenfield projects, including the upcoming Aster Capital in Trivandrum, and Aster MIMS Kasargod and adding bed capacity to the existing hospitals. The Company will also be eyeing potential markets such as Maharashtra and Uttar Pradesh. The capital allocation for this expansion is in the range of 1000 crore.