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Apollo Hospitals (AHEL) on Wednesday announced the creation of India’s largest omni-channel healthcare platform called ‘Apollo HealthCo' by merging its online and offline pharmacies and telemedicine businesses through slump sale.
As per the reorganisation, Apollo Hospitals has transferred its back-end offline pharmacy business (excluding hospital-based pharmacies), digital healthcare platform Apollo 24/7, its investment in retail pharmacy business (Apollo Medicals Private Ltd), and the “Apollo 24/7” brand, the “Apollo Pharmacy” brand and private label brands into the healthcare group's 100 per cent subsidiary Apollo HealthCo Limited.
“We have consistently maintained that the offline pharmacy business will continue to grow to 5,000 stores and maintain a healthy revenue growth rate of 18-20 % in the next 3 years,” the company said in a statement.
In addition, the digital healthcare platform Apollo 24/7, has demonstrated the capability of delivering medicines in 2 hours in over 10,000 pin codes, combined with the highest availability of medicines.
Apollo 24/7, which is already the highest-earning tele-consult platform in India, continues to scale rapidly with an “asset light approach” and aspires to achieve 100 million registered users in 5 years.
“The Apollo Hospitals Group, as the first adopter of modern healthcare, is perfectly positioned to be at the forefront of this transformation. This omni-channel approach has allowed us to serve over 27 crore people over the last 500 days,” Shobana Kamineni, Executive Vice-Chairperson, AHEL, was quoted in the statement.
“This proposed reorganization will set the platform for tapping new pools of investor capital that will enable rapid scale-up of the digital healthcare platform,” the healthcare major said, adding, “Post external capital raise at AHL, AHEL is expected to retain dominant majority shareholding in AHL and a slump sale consideration of Rs 1,210 crore will be received by AHEL.”
Meanwhile, Apollo Hospitals reported a consolidated net profit of Rs 169.9 crore for Q4FY21, as against a net profit of Rs 209.6 crore in the year-ago quarter.
Total consolidated revenue declined to Rs 2, 888.4 crore in the fourth quarter of FY21 as against Rs 2, 926.4 crore in Q4FY20.
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