Apollo Hospitals to Expand with New 500-Bed Facility in Worli, Mumbai and 200 Additional Beds in Luc

Team FS

02/Nov/2024

Key Points:

Apollo Hospitals announces a 500-bed hospital in Worli, Mumbai, set to provide comprehensive care in various specialties by FY26.
Expansion of Lucknow facility by 200 beds to meet increasing healthcare demands, with completion expected in the next three years.
Investment for these expansions is estimated at Rs 16,250 million, with funding through internal accruals and debt financing.

Apollo Hospitals Enterprise Limited has unveiled plans for a significant expansion across its healthcare network with two major projects aimed at increasing accessibility and elevating standards of healthcare in India. The announcement, made on November 1, 2024, outlines Apollo's new project to build a 500-bed multispecialty hospital in Worli, Mumbai, and expand the current Lucknow facility by 200 beds, adding to the company’s robust infrastructure and reinforcing its presence as a leading healthcare provider in India.

Expansion Highlights

1. New 500-Bed Facility in Worli, Mumbai

Apollo Hospitals Worli LLP, a subsidiary of Apollo Hospitals Enterprise, has entered a Build, Operate, and Manage (BOM) agreement with the Konkan Unnati Mitra Mandal (KUMM) for this ambitious project. Located on 1.7 acres of land in Worli, the facility will mark Apollo's strong footprint in Mumbai’s healthcare sector, complementing the existing Navi Mumbai hospital and clinic network.

Expected to be operational by FY26-FY27, this state-of-the-art hospital will integrate advanced diagnostic screening, surgical care (including robotic surgery), and therapies across specialties such as cardiology, oncology, gynecology, neurology, orthopedics, and emergency care. Apollo’s commitment to quality care will be underscored through international-grade medical equipment and partnerships with both local and international experts, aiming to provide world-class services at a fraction of global healthcare costs.

2. Expansion of Lucknow Facility by 200 Beds

Another significant expansion involves Apollo Medics International Lifesciences Ltd, an Apollo Hospitals subsidiary, which has acquired 1.2 acres of adjacent land in Lucknow to extend its facility from 300 beds to 500 beds. This move aligns with Apollo’s mission to address the rising demand for high-quality healthcare in Lucknow and its surrounding regions. Scheduled for completion within the next three years, the upgraded Lucknow hospital will serve as a comprehensive healthcare hub with expanded capabilities in critical care, trauma response, and specialty treatments.

Investment Details

The total investment for these expansions is projected to be approximately Rs 16,250 million:

Rs 13,000 million for the Mumbai facility in Worli
Rs 3,250 million for the Lucknow expansion

Apollo has indicated that the funding will be sourced through internal accruals and debt financing. Already, around Rs 1,700 crore has been allocated towards land acquisition, security deposits, and project development costs for these and other ongoing projects.

Compliance and Strategic Alignment

The expansion aligns with Apollo’s growth strategy, focusing on enhancing healthcare access and establishing facilities in strategic locations across the country. As per SEBI Regulation 30 of the Listing Obligations and Disclosure Requirements (LODR) and Circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123, Apollo Hospitals has disclosed all relevant details and financial commitments associated with these projects.

Additional Planned Expansions Across India

These developments are part of Apollo’s larger plan to add over 3,500 beds across 11 locations in India over the next four years. Key projects in the pipeline include:

Royal Mudhol, Pune: A 400-bed facility, of which 325 beds will be operational
Sonarpur, Kolkata: A 270-bed hospital (220 operational beds)
Gachibowli, Hyderabad: A greenfield project with 375 beds (300 operational)
Gurgaon, NCR: A 510-bed facility (420 operational)

The cumulative capital expenditure for these projects is estimated at Rs 6,100 crore. This expansion will bring Apollo’s total operational capacity to approximately 9,363 beds, including 7,942 owned beds, 790 managed beds, and 631 beds in day surgery and birthing centers.

Rationale and Vision

Apollo Hospitals’ founder, Dr. Prathap C. Reddy, expressed his enthusiasm for this milestone, reaffirming the company’s mission to provide quality healthcare at an accessible price. Ms. Suneeta Reddy, Managing Director of Apollo Hospitals, emphasized the organization’s commitment to setting new benchmarks in healthcare. "Our goal is to provide every Indian with access to the finest medical treatments and facilities," she stated. These expansions are poised to make Apollo a leading healthcare provider in Mumbai and Lucknow, equipped to meet growing healthcare demands through innovation and excellence in care.

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With these expansions, Apollo Hospitals is set to elevate healthcare standards, making quality care accessible to more people across India. The projects in Mumbai and Lucknow are designed to cater to a wide range of medical needs, from routine diagnostics to specialized surgeries and high-end treatments, ultimately strengthening Apollo's mission to deliver world-class healthcare across India.

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