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Apollo Hospitals says it is in no hurry to capitalise on the opening up of FDI in retail and insurance.
“It is an enabling provision. But it is too preliminary; there is no immediate plan,” said Akhileshwaran Krishnan, CFO.
Apollo Hospitals had earlier said it would “unlock value” in its pharmacy business which operates over 1,350 retail outlets across the country.
“Apollo Pharmacy, with an EBITDA margin of 2.5 per cent, is doing well and our focus is to make it more profitable and add stores. We will not take a call on roping in a foreign player right now,” said Krishnan.
For the year ended March 31, 2012, pharmacy business grew 30 per cent to Rs 860 crore. Apollo Pharmacy is also assessing setting up large format stores.
JV with Munich Health
Similarly, the company’s joint venture insurance business with German company Munich Health is also going strong, said Krishnan. The German company holds a 26 per cent stake in Apollo Munich Health Insurance.
“We have a strong relationship with Munich. We are evaluating how to get Munich to increase its stake but nothing is immediate.”
Apollo Munich made losses of Rs 29 crore last year. But the losses have been coming down steadily, said Chairman, Prathap Reddy, recently at the company’s AGM. “We will turn positive next year. Normally, it takes 7-9 years for a health insurance company to turn around. We will achieve it in just six years,” Reddy had said.
Apollo Munich’s gross written premium rose to Rs 476 crore from Rs 283 crore last year.
Meanwhile, the hospital is busy expanding. A 250-bed hospital super-speciality hospital will be opened in Chennai by December. Hospitals in Bangalore and Mumbai are also in various stages of construction.
“We will invest Rs 500 crore in the next 12 months.”
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