New Delhi: Kolkata-based Emami Ltd today said it is scouting for acquisitions in the healthcare space to expand the footprint of its hospitals business in the country.
AMRI Hospital, which is run by the Emami and Shrachi Groups along with the West Bengal government, is also in the process of investing Rs 400 crore to increase the number of beds it operates to around 1,500 this fiscal from 900 at present.
“We want to increase the number of hospitals. Currently, our presence is only in the eastern region. We are looking to acquire hospitals to expand in the rest of the country,” Emami Group of Companies chairman R S Agarwal said.
He, however, declined to name the healthcare firms that Emami is currently in talks with and also the possible size of the acquisitions.
Expansion beyond the eastern region will depend on the materialisation of acquisitions and hence, a timeframe cannot be put to it, Agarwal said.
While Emami controls a 66% stake in AMRI, Kolkata-based developer Shrachi has a 30% stake and the West Bengal government holds the remaining stake.
It currently has three hospitals in West Bengal, while one more is coming up in Orissa. It is also looking to set up hospitals at Siliguri, Rajarhat, Ranchi, Patna and Raipur.
On the back of the current expansion, the firm expects to achieve a turnover of Rs 1,000 crore from the hospitals business by next fiscal, up from Rs 300 crore at present.
“Only from our operations in the eastern region, we expect to have a turnover of Rs 1,000 crore in the next two years... We should be adding another 900 beds within this fiscal,” Emami director Aditya Agarwal said.
He said the expansion plan will entail an investment of Rs 400 crore.
There were reports earlier that the firm is looking to raise up to Rs 100 crore through private equity funding to expand its footprint.
AMRI has appointed an investment bank for fund-raising that will lead to minority stake dilution. Agarwal, however, declined comment on the issue.