Apollo acquires Nova Specialty Hospitals
Apollo Health and Lifestyle (AHLL) a wholly owned subsidiary of Apollo Hospitals Group has acquired Nova Specialty Hospitals for Rs 135 crore, a move that would give the Pratap Reddy founded company an entry into Mumbai, Jaipur and Kanpur.
With this acquisition, Apollo aims to expand its reach across India in places like Jaipur and Kanpur and also get an entry into the lucrative Mumbai market in providing Inpatient and OPD services for different kinds of surgeries. Nova Specialty Hospitals is spread over 8 cities and will add to the existing network of Apollo, according to company officials.
With this acquisition, Apollo gets 350 beds spread over 8 cities where Nova Speciality Hospitals has its presence. The capital for this acquisition will be raised through a mix of debt and equity, company officials said. Further, the combined entity is expected to post revenues in the range of Rs 115125 crore in this financial year, company officials said. These moves form a part of the overall strategy of the Pratap Reddy promoted company to achieve revenues of Rs 2,000 crore by 2020, with 1000 centres.
“We are seeing a trend wherein average length of stay for a patient is coming down from 4.5 days a few years back to about 32 hours,” said Sangita Reddy, Joint Managing Director–Apollo Hospital Enterprises. Neeraj Garg, CEO, AHLL added that AHLL is aiming to create a business of Rs 500 crores in 5 years and this acquisition is in line with that direction.
In the fiscal 2014, Apollo has treated 2 million patients, according to company officials but with this acquisition and through use of modern technology, the company is confident of addressing more patients. According to analysts, the healthcare industry in India is expected to reach $160 billion by 2017. Of this, the day care surgery market (which involves a surgery to be performed within a day’s time) is expected to grow to Rs 500 crore by 2020. Currently, 60 per cent of surgeries done are day surgeries with the remaining 40 per cent being short stay surgeries, according to Apollo executives.
(Source: Press release)