Apollo Hospital joint venture targets MumbaiJanuary 30th, 2009 - 9:23 pm ICT by IANS
Chennai, Jan 30 (IANS) The Western Hospital Corp - a 51:49 joint venture between Apollo Hospitals Enterprises and Eleanor Holdings of Mauritius - will build three hospitals in Mumbai by 2012, said a top Apollo official here Friday. “This is part of the group’s plan to have 1,000 hospital beds in the Mumbai region by 2012. Western Hospital will soon commence construction activity for a 400-bed hospital at Navi Mumbai on a three-acre plot. The total project cost is Rs.400 crore (Rs.4 billion) and will be funded by a mix of equity and debt,” Apollo group president K. Padmanabhan told reporters.
The company will partner with the Yash Birla group for another project at Thane on an outlay of Rs.2.4 billion.
The Yash Birla group will provide the land as the share of its equity and Western Hospital will bring cash as its share.
“Western Hospital is looking for a suitable plot to promote the third hospital,” added Suneeta Reddy, executive director of finance.
Additionally, the company will form a joint venture with infrastructure developer Marg Ltd to construct a multi-level parking project here.
Apollo Hospitals Enterprises closed the third quarter ended Dec 31 with an income of Rs.3.73 billion and a net profit of Rs. 295.3 million, as against Rs.2.89 billion and Rs.263 million posted during corresponding period of the previous year.
“The top line went up as we increased the tariff in some sectors and better utilisation of equipment. The average revenue per bed went up by Rs.1,000 to Rs.9,548,” said Reddy.
The profit would have been higher but for the Rs.40 million paid to Belhoul Hospital, Dubai as out-of-court settlement to exit a joint venture, the Belhoul Apollo Hospital.
It also incurred a Rs.30-million foreign exchange loss.
According to Reddy, the company’s pharmacy division will turn profitable in 18 months.
“The loss is owing to the rapid expansion in the recent past. In the last quarter 80 standalone pharmacies were opened. We have around 773 pharmacies out of which 330 are profitable, 260 breaking even and rest making losses.”
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