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Ranbaxy Group company Fortis Healthcare is targeting a pan-India presence with plans to set up 40 super-speciality hospitals by 2010.
"We plan to have 40 hospitals with 6,000-bed capacity by 2010," Fortis Healthcare Chief Executive Officer and Managing Director Shivinder M Singh said in Mumbai on Wednesday after his company's listing on the Bombay Stock Exchange.
At present, the company has all-India capacity of about 2,000 beds.
As part of its greenfield projects, it will be launching a hospital in Jaipur on June two, followed by greenfield facility in New Delhi and Medicity at Gurgaon, Haryana, in the next phase.
"Fortis has aggressive expansion plans...after remaining focused on north India, we plan to expand elsewhere and Mumbai will be the next location," Ranbaxy Laboratories Chief Executive Officer and Managing Director Malvinder Mohan Singh said.
The company's first hospital in Mumbai will come up at Vashi in neighbouring Navi Mumbai in the next two-three months, Shivinder said.
Talking about the huge growth opportunities in the healthcare sector, Malvinder said, "The Indian healthcare industry has grown to around $30 billion right now as compared to $20 billion in 2001 and is expected to be worth $40 billion by 2012."
Asked about international expansion plans, Shivinder said, "Fortis has a polyclinic in Kuwait and a Heart Command centre in Afghanistan but right now the focus is on domestic expansion."
The average cost per bed for developing a greenfield hospital is between Rs 30 to 60 lakh (Rs 3 to 6 million), he said.
The company is working on the hub and spoke model, where hospitals in various cities are networked with each other, he said.
Fortis had a modest listing on BSE on Wednesday with the Rs 10 share opening at Rs 105 as compared to the issue price of Rs 108 and touched a high of Rs 109.10 in first few minutes of trade.
The firm entered the bourses with 22.66 crore equity shares of Rs 10 each at an issue price of Rs 108 each.
The IPO of Fortis Healthcare was oversubscribed 2.78 times with bids for over 12.74 crore shares against about 4.57 crore shares offered in the public issue.
The qualified institutional buyers portion of the IPO, reserved for FIIs, mutual funds and domestic financial institutions, got subscribed 2.72 times, while the retail portion received bids of over 3.26 times.
Fortis Healthcare, which runs 11 hospitals in northern India, has received around Rs 153.69 crore (Rs 1.53 billion) through a couple of pre-IPO placements.
The offer proceeds would be deployed mainly in the construction of new hospital facilities and for other business purposes.
The book running lead managers to the issue were J M Morgan Stanley Private Limited, Citigroup Global Markets India Private Limited and Kotak Mahindra Capital Company Limited.
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