Home >Companies >News >Aster DM takes on lease Bengaluru hospital vacated by Narayana Hrudayalaya

NEW DELHI : Aster DM Healthcare has taken on lease a hospital in Bengaluru that is being vacated by Narayana Hrudayalaya, and will start operating the facility in one and a half years, Aster’s chairman and managing director Azad Moopen said.

“This hospital was earlier occupied by NH (Narayana Hrudayalaya), and they had earlier vacated, and we have gone into an agreement to take that as well as agreed with the lessor to have additional beds there so that it becomes a much larger facility," Moopen told Mint in an interview.

Aster DM Healthcare has already started upgrading the facility at Whitefield in Bengaluru and will increase the number of beds to 350 from the 91-bed facility operated by Narayana Hrudayalaya earlier.

There are two new buildings coming up next to the existing hospital, which will lead to increase in the number of beds, chief financial officer Sreenath Reddy said.

Devi Shetty-led Narayana Hrudayalaya had last week announced closure of the hospital at Whitefield effective 31 December, citing its inability to scale up the facility due to various reasons, including failure of the lessor to provide additional infrastructure that is compliant with regulatory norms.

While Narayana Hrudayalaya positioned the Whitefield hospital for the upmarket segment and did not have oncology as a specialty, Aster DM Healthcare will be adding the oncology segment and target the middle to upper income segment.

When Narayana was operating the hospital for its upmarket segment, the 91-bed facility generated Rs65 crore in the previous financial year, according to information in the company’s exchange filing.

Aster DM Healthcare has also taken on lease another 500 bed facility at Yeshwantpur in Bengaluru, and will start operating the hospital in about two years, Moopen said.

The company expects average revenue per occupied bed at Rs43,000 per day from the two hospitals, Reddy said. The company, however, did not give details on its expected financials.

The Dubai-headquartered healthcare chain plans to open four hospitals in India in total over the next three years, including a greenfield hospital in Chennai, as well as another five in Gulf Cooperation Council (GCC) countries where also operates.

The healthcare chain reported consolidated revenue from operations of Rs2,087 crore for July-September, up 14% on year. It consolidated net profit for the quarter grew more than doubled to Rs27 crore.

Out of its total revenue, Rs712 crore came from its 12 hospitals in GCC countries and Rs431 crore from 13 hospitals in India, while the remaining was contributed by the 116 clinics and 238 pharmacies it operates, primarily in GCC countries.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Edit Profile
My ReadsRedeem a Gift CardLogout