Aster DM announces Rs 250 crore expansion for Bengaluru hospital

New Delhi: Aster DM Healthcare Limited has announced an expansion for Aster CMI Hospital, Bengaluru. The hospital will undergo an infrastructure expansion of 300,000 square feet, increasing its bed capacity from 500 to 850 beds by FY2027.

This Rs 250 crore investment aims to solidify Aster’s presence in Bengaluru and support its goal of becoming the third-largest healthcare provider in India within the next three years.

Currently, Aster CMI Hospital spans 445,000 square feet in Hebbal, Bengaluru, and is renowned for its state-of-the-art facilities offering comprehensive primary to quaternary care services.

The expansion will contribute to Aster DM Healthcare’s cumulative bed strength in Bengaluru, bringing it to a total of 1,602 beds, making it one of the largest healthcare providers in the city.

Dr. Azad Moopen, Founder Chairman of Aster DM Healthcare, expressed his commitment to the expansion, stating, “Our phase-wise expansion aligns with our vision to meet the growing demand for advanced and quality healthcare. Aster CMI Hospital since its launch in 2016 has revolutionized the healthcare market in Bengaluru and the whole of South India. The overall India business EBITDA for Aster DM Healthcare has grown at the rate of 35% CAGR over the past 5 years, which is reflected in the performance of the EBITDA margin as well. We expect the strong performance to continue in the future, which will be supported by operational leverage on account of brownfield expansion and implementing various cost optimization measures.”

Dr. Nitish Shetty, CEO of Aster DM Healthcare in India, highlighted the necessity of the expansion, noting, “We are running our existing hospital at full capacity, hence we have decided to expand the infrastructure to accommodate the growing needs of patients. This expansion is expected to have a positive impact on both EBITDA and PAT, as it involves minimal fixed costs for operating the additional beds. We do not expect any margin dilution in the short term as well. Aster DM Healthcare is poised to make a significant impact on the healthcare landscape with its focus on strategic growth, patient-centric care, and expansion in existing and newer geographies.”

Aster DM Healthcare plans to add approximately 1,700 beds by FY27, bringing its total bed count in India to over 6,600 through organic growth, with further expansion planned through inorganic routes. This strategic growth plan includes a mix of brownfield and greenfield projects, such as Aster Capital in Trivandrum and Aster MIMS Kasargod, as well as increasing bed capacity at existing hospitals.

The company is also exploring potential markets in Maharashtra and Uttar Pradesh, with a total capital allocation for this expansion in the range of Rs. 1,000 crore.