Kauvery Hospitals eyes to double capacity in 3 years at outlay of over Rs 1,000 crore

Healthcare major Kauvery Hospitals has planned to double its bed capacity over the next three years at a total outlay of over Rs 1,000 crore, a top official said on Friday.

The city-based hospital chain which commenced operations in 1999 as a 30-bed hospital now has over nine healthcare facilities comprising 1,500 beds in six cities.

''The healthcare provider is currently in the midst of a fast-paced expansion program, as there is a plan to reach 3,000 beds by 2025 with a network of 15 hospitals spread across seven cities in South -- Tamil Nadu and Bengaluru, Karnataka, being the focus regions with a total CAPEX outlay of Rs 1,000-plus crore,'' said founder-chairman of Kauvery Hospitals Dr. Chandrakumar.

''We will continue to evaluate opportunistic acquisitions in South...,'' he said in a statement.

The group intends to hit the capital market once it achieves an optimum scale along with strong financial metrics in the next 3-4 years, he said.

According to Kumar, the group recently acquired a hospital in Tirunelveli and another hospital in Bengaluru and would be launching its second facility in Chennai before the year-end.

The presence in tier-I and -II cities has allowed the hospital to adopt and practice effective cost optimization measures -- a key factor contributing toward healthy EBITDA (earnings before interest, taxes, depreciation, and amortization) margins and returns on capital across all its hospitals, the statement said.

The hospital has roped in 'o3 Capital' as its exclusive financial advisor to raise minority growth capital to fuel its planned expansion plans, it added.