Apollo Hospitals eyes acquisitions in North India; ₹6,000-crore capacity expansion plans underway

Suneeta Reddy, MD, Apollo Hospitals Enterprise Ltd

Apollo Hospitals Enterprise, India’s largest hospital chain by bed capacity, is accelerating expansion through a series of acquisitions as a part of its strategy to up its presence in North India. This includes cities such as Noida and Varanasi, and other tier-II towns like Kanpur, while capitalising on surging demand for advanced healthcare. 

Other tier-I acquisition targets include entities in Mumbai. The company has a near ₹2,000-crore free cash flow which it aims to leverage for expansion, as well as acquisitions, Suneeta Reddy, MD, Apollo Hospitals Enterprise, told businessline.

Apollo’s per-bed revenue works out at ₹0.86 crore versus competition’s ₹0.58 crore. 

It is also expanding overseas into Africa, West Asia and Indonesia, where it helps in setting up and operationalising hospitals, against a 4 per cent revenue-sharing model. These hospitals, however, are still not branded under Apollo. 

“We would take a call later on whether or not to leverage these as Apollo-branded entities,” Reddy, also the President of AIMA, said on the sidelines of its National Leadership Conclave. 

North India focus

Apollo continues to focus on North India in line with some of its competition. The company is deepening presence in existing markets such as Lucknow and Delhi. 

Apollo recently acquired a 1.2-acre plot in Lucknow for over ₹300 crore, adjacent to its current 330-bed facility, to add 200 beds by 2028, bringing the total to 500. This brownfield expansion is part of a broader ₹6,000-odd crore plan to add 3,500-odd beds over the next few years. Nearly 1,400 of these beds are expected by FY26 in Pune, Kolkata, Hyderabad and Gurugram. A 50-bed speciality oncology unit is expected in Delhi too. 

“Current expansion would entirely be funded by internal resources,” Reddy said, adding that debt to equity ratio of 0.25 per cent (March 2024) allows it to be in a favourable position to “raise money, if required.” 

“In Noida … and Kanpur, we are on the lookout,” she said. 

Other segments 

Apollo’s acquisition strategy also focuses on high-growth segments. 

In diagnostics, its Hyderabad-based arm, Apollo Health and Lifestyle acquired a controlling stake in Lucknow-based Care Diagnostics in March 2025 for an undisclosed sum, enhancing its network of 2,300 diagnostic centres. 

This follows the 2024 buyout of Chennai-based molecular diagnostics start-up Tvaster Genkalp for $1.25 million, boosting Apollo’s precision-testing capabilities for cancer and genetic disorders. 

Insurance broking 

Apollo Hospitals, Reddy said, is exploring a health insurance product play — insurance broking services — such as third-party integrations on its app (Apollo 24|7). 

The company has tied up with Niva Bupa to offer a smart health insurance plan covering expenses for hospitalisation, coverage for domiciliary treatment and others.

The healthcare provider’s first insurance product Apollo Munich was sold to erstwhile mortgage lender Housing Development Finance Corporation. 

“Depending on how the existing tie-up with Niva Bupa plays out, we will think of expansion in the broking business,” she said. 

Published on April 15, 2025

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}