Aster DM Healthcare announces Rs 250 Cr expansion plans in Bengaluru

27 May 2024 | News

Hospital will have an additional infrastructure expansion of 300,000 sq feet

Aster DM Healthcare, one of the largest integrated healthcare providers in India, has announced its expansion plan for Aster CMI Hospital, a leading 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. With this development, the company is further strengthening its presence in Bengaluru, reaching a cumulative bed strength of 1602 beds, thereby becoming one of the largest healthcare providers in the city.

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 current Indian healthcare market looks highly promising, and our efforts will be to increase our footprint in the country dynamically. We are investing heavily in our people, innovation and infrastructure to differentiate ourselves and create long-term value for all our stakeholders. The expansion of Aster CMI Hospital thus solidifies our unwavering commitment to the Indian business. The overall India business EBITDA for Aster DM Healthcare has grown at the rate of 35% 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 optimization measures.”

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 3 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 Rs 1000 crore.


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