RG Stone to open 10 hospitals in 3 yrs, to invest Rs 100 cr
Super-speciality RG Stone Urology and Laparoscopy Hospital will open 10 new centres in 3 years with an investment of Rs 100 crore
The hospital chain is expecting a turnover of up to Rs 135 crore in the financial year 2014-15, 10-15 per cent growth. RG Stone has 17 hospitals across the country. It had a turnover of Rs 110 crore in the last fiscal.
“We will add 10 hospitals to our existing network in next three years. They will come up at metros and as well as non metro places such as Jammu,” RG Stone Urology and Laparoscopy Hospital Executive Director Hanish Bansal informed.
“We will invest Rs 9-10 crore in setting up new hospitals and funds would be arranged by PE investors,” Goyal said, adding that the company will continue with year-on-year growth of 15-20 per cent.
All new facilities will be company-owned and a mix of department-in-hospital model and independent full unit.
“Many hospitals have outsourced their Urology department to us and we have set up a department-in-hospital. It is similar as shop-in-shop basis,” Goyal said.
In department-in-hospital model, revenue is distributed on 60:40 basis between the company and the hospital hosting the department on its premises, he added.
The company is also attracting patients from the Middle East, Nepal, Bangaladesh, Sri Lanka and so on.
“Our Delhi and Mumbai centres have around 5-7 per cent international patients. Kolkata also gets patients from Bangladesh,” he said.
Over the future expansion, Bansal said: “In next five years, we expect to have a network of at least 35 hospitals with a revenue of over Rs 500 crore.”
On being asked whether the company would go for IPO to bear its future expansion, he said: “We may go. It is one of the options. We may look at that in future.”
RG Stone had received Rs 41 crore funding from ICICI Ventures in 2008, and Rs 95 crore from India Equity Partner in 2011 for expansion.