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Dubai-based D M Healthcare plans to invest nearly Rs 2,000 crore in the next five years in India as its looks to expand operations and increase revenues from the country.
The company is in the process of setting up a ‘MedCity’ in Kochi, a medical college and hospital at Wayanad in Kerala and it also plans to open specialised eye care centres in the NCR region.
The company has earmarked a capex of Rs 1,000 crore for the next three years, including Rs 500 crore for the first phase of the MedCity and Rs 1,000 crore during its second phase.
“We plan to invest around Rs 1,500 crore in the next five years to set up MedCity at Kochi. Work has already started for the 500-bed hospital. In the first phase, we will invest Rs 500 crore,” the DM Healthcare Chairman, Mr Azad Moopen, told PTI.
The first phase would be completed by 2013, he said, adding that MedCity would host a large hospital, six centres of excellence, a resort hotel, a convention centre, a medical college and associate facilities.
“We have the land and started the construction. Hopefully in the next two years, we will be able to admit the first patient,” Mr Moopen added.
He said only for the next 2-3 years, the company’s capex is around Rs 1,000 crore. It also plans to invest around Rs 150 crore to set up a medical college at Wayanad.
“We have got no objection certificate from the Kerala Government for a 150-seat medical college and have also acquired land,” the company Chairman said.
Besides, the company will invest nearly Rs 20 crore to set up specialised 4-5 eye care centres in the NCR region. The first of the lot has already started operations in Faridabad.
It has also acquired 65 per cent stake in a 100-bed hospital at Kolhapur in Maharashtra and is planning to add another 200 beds to it.
DM Healthcare is also in the process of acquiring a majority stake in a Pune-based hospital, he said but did not provide further details.
For the funding of the Rs 1,000-crore capex, he said 50 per cent will come from bank finance, one third from internal accruals and the rest from dilution of equity in the company.
As part of its funding process, the firm is also planning to come out with an initial public offer in the medium term.
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