Apollo’s clinic arm plans to raise up to Rs 500 crore from PE cos

MUMBAI: Apollo Health and Lifestyle Ltd, a wholly owned subsidiary of Apollo Hospital Enterprise Ltd, is looking to raise Rs 300-500 crore funding from private equity players for its expansion.

“We are definitely looking at capital raise, and we will do this shortly,” Sangita Reddy, joint managing director at Apollo Hospitals, told ET. The fundraising would be to expand the various brands under Apollo Health and Lifestyle (AHLL), which runs nearly 600 clinics including sugar clinics, day care surgery, cosmetology and dental clinics under various brand.

The company targets to cross Rs 2,000 crore in revenues by 2020.

AHLL is aiming to play in a diverse healthcare space which is at the intersection of technology and home care. “We are seeing this change happening across sectors like banking where people don’t go to the bank but go to the ATM; even in hospital the care is moving from hospital to clinic and ultimately home,” Reddy said.

She, however, said the group has no plans to open separate clinics for oncology care. “Oncology care stays in hospital. We are one of the largest onco providers. Oncology is not about adding five machines and saying that you are offering onco service, it is an integrated service and we would like to keep it that way,” she said.

Reddy along with her sister Sunita Reddy is also looking at digitising the hospital space. “The digital marketing aspect will determine on how we reach customers, so it is going to be a big change for us,” she said.

Asked about reports of a conflict between Apollo Hospitals and its Malaysia-based investor IHH, Reddy the relation is cordial and there’s no fight. “They (IHH) also have growth aspiration; they sit on our board and see our numbers and see how big India is and want a pie of the market,” she said.

Asked if the group was worried that competitive information would be leaked out to its partners, Reddy said they are working on a modality on what kind of information to share with IHH and what to keep confidential.