Aster DM Healthcare to Invest INR 1,400 Cr in Indian Healthcare Expansion

Priority regions include Kerala, Karnataka, and Hyderabad, aligning with the company’s regional growth focus.

Aster DM Healthcare has announced an INR 1,400 crore investment to expand its healthcare footprint across India over the next five years, covering both greenfield and brownfield projects. 

Of this, INR 350–400 crore has already been deployed, the company told Business Today.

The expansion plan includes adding 1,700 beds by FY27, increasing Aster’s total bed capacity in India to 6,800. Priority regions include Kerala, Karnataka, and Hyderabad, aligning with the company’s regional growth focus.

Dr. Azad Moopen, Founder and Chairman of Aster DM Healthcare, said, "We are determined not just to grow in terms of infrastructure but also to adopt new technologies to improve patient care and overall healthcare delivery."

Focus on Southern States and Tier-2 Cities

Kerala is expected to see the highest allocation, with INR 850 crore to be invested over the next three years. Key upcoming projects include a 454-bed tertiary care hospital in Trivandrum and a 264-bed multispecialty facility in Kasaragod. Aster Medcity in Kochi is also set for a 100-bed upgrade by FY25.

"We have a solid foundation in Kerala, and we are committed to strengthening our presence there while expanding into other regions," said Dr. Moopen.

Aster is also pursuing broader national expansion, particularly in underserved areas. "While we have a strong presence in the South, we are actively looking to expand into the North and strengthen our national presence. We are especially focused on smaller cities where the healthcare gap is more pronounced," he added.

The company’s merger with Quality Care India Limited consolidates assets like CARE Hospitals, KIMSHEALTH, and Evercare, creating a network of 38 hospitals with more than 10,000 beds across 27 cities. The merged entity reported ₹7,314 crore in revenue and INR 1,396 crore in adjusted EBITDA for FY24.

"The merger presents an opportunity to optimise our resources, standardise care protocols, and drive operational synergies across our network. This will help us better serve our patients by delivering care more efficiently," Dr. Moopen noted.

Digital Health, AI, and Home Care in Strategic Mix

Aster’s expansion includes investment in digital health platforms. The ‘Aster Health’ app, which allows patients to book consultations, access medical records, and order medicines, is part of its digital health push.

Further, Aster is collaborating with the Indian Institute of Science on an AI tool for diagnosing Carpal Tunnel Syndrome. In parallel, its home healthcare service, Aster@Home, is gaining traction for offering services like doctor consultations, diagnostics, and physiotherapy at home.

"India’s ageing population and rising demand for home-based healthcare services create a significant opportunity for Aster in this space," said Dr. Moopen.

Looking ahead, he said, "Our vision is to offer accessible, affordable, and high-quality healthcare services across India, focusing not just on metropolitan areas but also on smaller cities and rural regions."