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Hyderabad-based Yashoda Hospitals plans to expand into three other cities to add six hospitals in the near term. It is also keen on diversifying into smaller, secondary healthcare centres in its home city, according to its CEO, Mr Dheeraj Gorukanti.
The family-owned hospital group is scouting for land in Bangalore, Chennai and Mumbai to build 300-bed hospitals; it plans to have two facilities in each of these cities in the next five years, Mr Gorukanti told Business Line . These would be financed mostly through debt and part by the group.
Greenfield hospital
The family-owned group has grown from a single facility in 1994 to the present four multi-specialty hospitals, including a cancer institute. With a combined 1200-odd beds, it is said to be the city's single largest healthcare dispenser. Mr Gorukanti said they command around 40 per cent of the Hyderabad healthcare market.
“We don't want to be restricted to only Hyderabad any more and are moving into other cities. Expanding to Mumbai, Chennai and Bangalore (in that order) are the most immediate plans. I am here to look for suitable land” to build a greenfield hospital. At least, one of the new projects may come up in a year's time, he said.
Mr Gorukanti, whose family promotes the hospital chain, did not mention an investment figure. (Industry watchers said putting up a hospital of Yashoda's size could cost around Rs 200 crore.)
Delivery problem
Yashoda, which expects to close this year with revenue of Rs 350 crore, was considering entry into secondary healthcare services in Hyderabad through 60-80-bed units that met some of the commonly felt medical needs. The plan was in an early stage, Mr Gorukanti said.
According to Mr Gorukanti, requirement of healthcare has been growing across the country and the industry is still in a nascent stage in the nation with second highest population. “The crux of the matter is, how do you effectively deliver [to this number]?”
Healthcare players were debating if it should it done be through smaller, accredited centres that maintain quality, or should it be through large, 500-bed branded hospitals, he said.
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