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Aster DM Healthcare Targets Expansion in India with Acquisition Strategy

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Rafia Tasleem
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Aster DM Healthcare Targets Expansion in India with Acquisition Strategy

Aster DM Healthcare Ltd., a leading hospital and pharmacy chain, has unveiled its strategy to broaden its presence in India through the acquisition of private healthcare operators. This ambitious plan follows the successful divestiture of its Gulf business, which netted the company a cool $1 billion. As part of its growth blueprint, Aster aspires to augment its current bed capacity in India, which stands at 4,800, to approximately 6,300 in the next three years. The firm is specifically eyeing non-listed entities that have exhibited robust performance.

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A Bold Expansion Strategy

The company's chairman and managing director, Azad Moopen, outlined Aster's expansion strategy in an interview with Bloomberg Television. At the core of this strategy is a deliberate focus on India's healthcare sector, a market that presents significant growth potential, largely due to the nation's burgeoning population. This approach is expected to be financed by an investment ranging from Rs 1,500–2,000 crore spread over the next 3-5 years.

Seizing Growth Opportunities

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Recently, Aster DM Healthcare made the strategic decision to separate its India and GCC Gulf Cooperation Council operations. This move was met with a positive response from both the market and shareholders. The company is now keen on leveraging the funds derived from this separation to fuel its inorganic growth in India.

Expanding Capacities and Locations

The principal component of Aster's strategic plan for the next three years is the addition of 1,500 beds in India. This expansion is not limited to increasing the capacity of existing facilities; the company also aims to broaden its footprint by establishing its presence in various locations across the country. Driven by market potential and a positive response from stakeholders to its strategic decision, Aster DM Healthcare is poised for a period of sustained growth.

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