Aster DM Healthcare to invest $107.62M to further expand in India
What started with just one clinic in Dubai in 1987, has now grown to have 24 hospitals, 116 clinics and 214 pharmacies across 9 countries, including India and many in the Gulf region.
Aster DM Healthcare is now a conglomerate with plans to expand its portfolio further, especially that of India, where it currently has 13 hospitals, many of which are in the state of Kerala.
Aster is planning to invest AED 395 (USD 107.62) to open four new hospitals in the southern states of India — reportedly in the cities of Bengaluru, Chennai, Kannur and Thiruvananthapuram. These hospitals are due to be completed by March 2022.
While the healthcare conglomerate's first hospital in India, Aster MIMS opened in 2002 in the city of Kozhikode, located in the state of Kerala, it expanded its operations exponentially only in 2018, when they opened multiple hospitals and clinics in the region. At that time, the conglomerate raised $150 million in funding. As reported by Forbes, Aster "netted $53 million on revenues of $1.1 billion," in the 2018-2019 financial year ending in March.
Founder and managing director, Dr. Azad Moopen revealed in the interview with Forbes, that while Aster DM Healthcare is concentrated in Kerala, they do have plans to expand further north if an opportunity arises. However, given their current plans to further consolidate their position in South India, it might be some time before the northern and eastern states of India see Aster's services.
In addition to investing $107.62 to complete the four new hospitals, Aster also has plans to invest INR 2.5 billion (AED 129.76 million) to purchase new equipment and expand the group's existing facilities.
While the healthcare industry in the Gulf region is strong, there is still hesitation in the market when it comes to invasive procedures. Trust also remains a concern. These challenges are far less of a hurdle in India, which has helped Aster grow quickly within the country
Investors such as Kareem Elsirafy from Modus Capital, and HealthTech startups such as Okadoc, Altibbi, along with many others are aiming to improve the entire healthcare ecosystem in the UAE and wider Gulf region to instil trust and help healthcare centres use resources in a much more efficient manner.