Aster DM Healthcare Unveils Expansion Plan for Aster CMI Hospital in Bengaluru

On May 27, 2024, Aster DM Healthcare Limited announced in a stock exchange filing its expansion plan for Aster CMI Hospital, a leading multispecialty hospital in Bengaluru.

The company stated that the hospital will have an extra infrastructure expansion of 3,00,000 sq feet, thereby expanding its bed capacity from the existing 500 beds to 850 beds. With this significant development, the company is further bolstering its presence in Bengaluru, reaching a cumulative bed strength of 1,602 beds and evolving into one of the largest healthcare providers in the city.

The company will invest around ₹250 crore to upgrade the existing facility, and is anticipated to be commissioned by FY 2027.

Aster CMI Hospital, located in Hebbal, Bangalore, spans 4.45 lakh square feet. Renowned for its contemporary state-of-the-art facilities, it provides comprehensive primary to quaternary care services. Established in 2016, the hospital has emerged as a top multispecialty facility, showcasing its commitment to elevating clinical standards nationwide.

Speaking of this significant development, the Founder and Chairman of Aster DM Healthcare, Dr Azad Moopen, said, “Our phase-wise expansion is aligned with our vision to serve the growing needs for advanced and quality healthcare. Aster CMI Hospital, since its launch in 2016, has revolutionised the healthcare market in Bengaluru and the whole of South India. Today, the hospital stands amongst the leading players in the market. With many innovative and ambitious initiatives, Aster DM Healthcare has radically catalysed the healthcare revolution in India.”

He further added, “The expansion of Aster CMI Hospital thus solidifies our unwavering commitment to the Indian business. The overall India business EBITDA for Aster DM Healthcare has grown at the rate of 35% CAGR over the past 5 years, which is reflected in the performance of the EBITDA margin as well. We expect the strong performance to continue in the future, which will be supported by operational leverage on account of brownfield expansion and implementing various cost optimisation measures.”

The company aims to increase its bed capacity to more than 6,600 in India by FY 2027, primarily through organic growth. It also plans to pursue expansion opportunities through acquisitions, aiming to rank among India’s top 3 integrated healthcare providers. This expansion strategy includes brownfield and greenfield projects, such as the upcoming Aster Capital in Trivandrum and Aster MIMS Kasargod.

Additionally, the company will explore potential markets like Maharashtra and Uttar Pradesh. The allocated capital for this expansion is approximately ₹1000 crore.

On May 27, 2024, the share price of Aster DM Healthcare Ltd opened at ₹369.00, touching the day’s high at ₹378.90, as of 11:25 AM on the NSE.

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