The company is pursuing a dual strategy of strengthening its presence in the North, where it is a leader, as well as exploring acquisition opportunities in other regions like western India, Soi said.
“We have a significant [bed] shortage. We’re not even scratching the surface right now,” Soi said. India needs an additional 2.4 million hospital beds to meet the World Health Organization-recommended ratio of 3 beds per 1,000 people, according to a 2023 Knight Frank report.
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“Clearly, we have a per capita income increasing right now. Aspirations are increasing, the desire for proper hospitals is also increasing…I don’t see us catching this curve for the next 20-30 years,” Soi said.
“We need to build, build, build,” he added.
Max Healthcare, which completed several acquisitions in the last few quarters, is now focused on adding capacity to its existing assets.
“Last year, we increased capacity by 30%, of which about 20% capacity addition happened through inorganic [routes],” said Soi, adding that this year, the company is planning to increase capacity by further 30%, which will come through bed additions in existing facilities.
The company will see a ramp-up with 268 beds being added in Nanavati, Mumbai, 155 beds in Mohali, and 400 in Saket, Delhi by June-July. Another 550 are being added in its Gurugram facility by December.
The hospital chain officially inaugurated its 300-bed greenfield Dwarka facility on Tuesday. The hospital has been operational for over six months, and has already achieved Ebitda (earnings before interest, taxes, depreciation, and amortization) breakeven, Soi had previously told Mint.
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It will inaugurate three other hospitals in Mohali, Mumbai and Saket, New Delhi later this year.
The company plans to add 3,700 beds across key locations in India by 2028, for which it had previously announced an investment of ₹6,000 crore.
“In the next decade, whatever [profits] we are going to be making, we will be reinvesting in creating healthcare assets,” Soi said.
Strengthening North India hold
Max Healthcare has a strong leadership in North India, with 14 hospitals in Delhi-NCR alone. The chain will continue to strengthen its hold in the region, but is also pursuing opportunities in other regions.
“It’s a dual strategy… you try to be stronger where you are strong, and where you are not present and others are succeeding, you try to do better there as well,” he said.
Soi said he is opportunistic about other regions and open to pursuing acquisitions to strengthen their leadership. The company has already made forays in the western region with Nagpur and Mumbai facilities, and another announced in Thane.
For acquisitions, the chain considers two criteria, a proven viability, and a 20-25% return on capital employed (ROCE) in 4-5 years. Further, the acquired assets must have the capacity for future expansion.
“Every acquisition of ours also is a segue for further capital creation,” Soi said, adding that the company is planning to increase capacity in its recently acquired Lucknow facility from 200 to 500, adding two more floors in its Nagpur facility and double the beds in its Jaypee Healthcare facility this year.
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