Max Healthcare to focus on acquisitions, brownfield development for growth: CMD

livemint.com:

Subscribe to enjoy similar stories. Max Healthcare is focused on inorganic expansion, including development of brownfield assets as well as acquisitions, to drive growth, its chairman and managing director Abhay Soi said on Thursday. The Delhi-headquartered hospital chain’s board on Thursday approved an agreement to set up a 500-bed hospital in Thane, Maharashtra, under a built-to-suit model with VR Konkan Pvt Ltd.

An addendum to a previously executed agreement for a built-to-suit hospital in Mohali was also approved by the board, increasing bed capacity from 250 to 400. Also Read | Pharma sector to grow 9-11% in FY26: Top 5 stock picks by Motilal for 2025 In a built-to-suit model, a property is custom-built, based on the specific requirements of the tenant or owner. “The growth is going to come from inorganic [expansion]," Soi told Mint in an interview.

“The opportunity is plenty, we’re already operating at high occupancy, as far as existing hospitals are concerned," he added. “As far as we are concerned, brownfields, greenfields, as well as acquisitions, all three are routes for inorganic growth," Soi added. Also Read | Max Healthcare to invest ₹2,500 crore to develop hospitals in Lucknow Max has a significant brownfield ramp-up planned for the next six months, and has also completed several acquisitions in the last few quarters.

Soi expects the capacity expansion to synergise in a year’s time. “Next year we’re going to be entering a glory period effectively," he said. The company will see a large-scale brownfield ramp-up with 268 beds in Nanavati, Mumbai, 155 beds in Mohali, and 400 beds in Saket, Delhi, being added in the next six months.