Aster DM Healthcare Ramps Up Expansion to Challenge Apollo’s Dominance

The company plans to add 1,500–1,700 beds by FY 2027, bringing its total capacity to around 6,800–10,000 beds, depending on organic and inorganic growth integration.

Aster DM Healthcare has launched an aggressive expansion strategy to grow its presence in India and compete with Apollo Hospitals.

The company plans to add 1,500–1,700 beds by FY 2027, bringing its total capacity to around 6,800–10,000 beds, depending on organic and inorganic growth integration.

Over 57 percent of these new beds are set to be in Tier 2 and Tier 3 cities, such as Pune, Nagpur, and Lucknow, where the population exceeds three million.

Greenfield, Brownfield Projects, and Strategic Merger

New developments include a 454-bed tertiary hospital in Thiruvananthapuram and a 264-bed facility in Kasaragod, Kerala. Existing hospitals across Karnataka, Telangana, Maharashtra, and Hyderabad will also see capacity expansion. Aster has already invested INR 350–400 crore and plans to allocate INR 1,400–1,900 crore more in capital expenditure.

The merger with Quality Care India Ltd. adds to its momentum, integrating networks like CARE Hospitals, KIMSHEALTH, and Evercare. The consolidated group now includes 38 hospitals with over 10,150 beds across 27 cities.

Digital Health & City-Level Investments

Aster also advances digital services through the Aster Health app, offering features such as appointments, e-pharmacy, and digital medical records. It is also expanding AI-based diagnostics and home care services, including Aster@Home.

In Bengaluru, a 430-bed multispecialty hospital is under construction in Sarjapur with an investment of INR 480 crore. Kerala remains a priority with a INR 850 crore plan over three years to raise bed capacity to over 3,400.

CEO Nitish Shetty stated the company projects a 15–25% CAGR backed by “strategic investments, digital healthcare integration, and a focus on less-served regions.” The company will rely on strong liquidity and internal accruals for funding, with no ownership dilution by promoters.

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