Max Healthcare Open for Acquiring Hospitals If Opportunity & Chemistry work out, Sets its Target to reach 921 Cr in 11-12 Fiscal
With over 1900 beds and 12 hospitals in Delhi-NCR, Punjab and Uttarakhand, over 1600 world-class doctors and 5400 support staff, Max Healthcare is one of the leading chain of hospitals in India. With 275 ICU beds & the most advanced technology, our state-of-the-art infrastructure is rated the best in North India thereby making Max Healthcare one of the best hospitals in India.
100 beds each in Mohali & Bathinda (Punjab); 100 beds in Dehradun, 289 beds in Shalimar Bagh, Delhi & others with a estimated budget of 516 Crore.
Maharastra, Mumbai, 4th July 2011. Max Healthcare has recently been in news for its aggressive planning to expand nationwide network of Hospitals of close to 800 Beds in its ongoing strategic business planning to have wider access to markets & reach cities which are fast responding to speciality Hospitals . In an exclusive interview with Satya Brahma, Editor-In-Chief of PharmaLeaders & Indian Affairs Magazine ( www.pharmaleaders.co.in ) www.indianaffairs.in ), Dr Pervez Ahmed, CEO & MD, Max Healthcare answered the expansion & recent initiatives of Max to make its presence felt on a Pan-India Network. With over 930 Beds and 8 hospitals in Delhi, over 1500 physicians and 3500 support staff Max Healthcare is one of leading chain of hospitals in India. Our state of the art infrastructure is one of the best in Delhi, over 275 ICU beds & most advanced technologies makes us one of the best hospitals in India. Recently Max Board said it will buy private equity firm Warburg Pincus group’s entire 16.37 per cent in Max Healthcare Institute Ltd for Rs 140 crore. Given the market size & enormous opportunities in healthcare services, Max has set ambitious projects to reach close to 1000 Crore by 2011-12 Financial Year. Excerpts from the interview.
PL. Max plans to add nearly 700 beds this year as it goes on an expansion drive for its healthcare arm by opening four new hospitals in 2011. What are the territories it is looking for?
MAX : Max Plans to add nearly 800 beds this year. 200 beds each in Mohali & Bathinda (Punjab); 100 beds in Dehradun, 289 beds in Shalimar Bagh (Delhi).
PL. Despite the global economic downturn, medical tourism in India has emerged as the fastest growing segment of tourism industry. High cost of treatments in the developed countries, particularly in the USA and the UK, has been forcing patients from such regions to look for alternative and cost-effective destinations to get their treatments done. Indian medical tourism industry is presently at a nascent stage, but has an enormous potential for future growth and development. How is Max looking at this vibrant change?
MAX. – Max Healthcare (MHC) is committed in providing quality healthcare to all its patients. We are not just looking at the patients from the US, UK and other Western nations, but also at patients from the SAARC countries. The people pf these nations do not have access to good quality healthcare. This gap can be bridged by us as we have the bed capacity, easy access and affordable care available.
PL. As India’s share in the global medical tourism industry will reach around 3% by the end of 2013. Moreover, medical tourism is expected to generate revenue worth US$ 3 Billion by 2013, growing at a CAGR of around 26% during 2011–2013. The number of medical tourists is anticipated to grow at a CAGR of over 19% during the forecast period to reach 1.3 Million by 2013. Will Max operate on a Pan-Asia network as well as eye overseas market?
MAX. – MHC has been consolidating its position within India. We may look at all options – Pan Asia and overseas, if the suitable opportunity presents itself.
PL. We have also found that, India represents the most potential medical tourism market in the world. Factors such as, low cost, scale and range of treatments provided by India differentiate it from other medical tourism destinations. Moreover, growth in India’s medical tourism market will be a boon for several associated industries, including hospital industry, medical equipments industry, and pharmaceutical industry. How is Max looking at these developments?
MAX. MHC’s strategy is not directed purely to provision of quality healthcare to International patients, but more so to its Indian patients. As we expand and grow, both in the number of beds and the services provided, we provide employment & growth opportunities to a large number of people in hospitals and other associated industries.
PL. In addition to the existence of modern medicine, indigenous or traditional medical practitioners are providing their services across the country. There are over 3,371 hospitals and around 754,985 registered practitioners catering to the needs of traditional Indian healthcare. Indian hotels are also entering the wellness services market by collaborating with professional organizations in a range of wellness fields and offering spas and ayurvedic massages. Does it sound mixed response?
MAX. Up until now, MHC has been providing modern, allopathic medicine to its customers. Looking at the larger picture of provision of an integrated approach to wellness and prevention, with Evidence Based Medicine (EBM), both in the AYUSH and allopathic forms of medicine, will be the true differentiator for MHC & India.
PL. Leading players such as Apollo Hospitals Enterprise Ltd, 2 Wockhardt Ltd..3 Fortis Healthcare are increasing their presence through acquisitions, Is Max on that line as well??
MAX. So far MHC has done only Greenfield & PPP projects. If a suitable opportunity does arise, MHC will consider an M&A.
PL.. Is Tele-Medicine viable in india?
MAX. Very much so. In the mission to provision of accessible, quality healthcare to to the millions of Indians in rural & backward areas, all forms of mobile telephony options and tele-medicine options are viable.
PL. What are the investment plans of Max to raise money to fund for the 700 Beds?.
MAX. Max Investment plans to fund for around 800 beds is given as under ;-
Rights Issue :- Rs. 118 Cr
CCPS Max India :- Rs. 150 Cr
Debt :- Rs. 193 Cr
Preference Capital :- Rs. 45 Cr
Retained Earnings :- Rs. 10 Cr
Total Project Cost :- Rs. 516 Cr
PL. Will Max add more numbers besides the 700 beds?
MAX. Yes, in FY 15-16, Max healthcare will add another 100 beds each in the Mohali & Bathinda facilities and 50 beds in the Dehradun facility.
PL. What will be the projected turnover by the end of fiscal 2012 March?
Projected turnover (including turnover of new facilities) for FY 11-12 is Rs. 921 Cr.