More than a decade after it exited a joint venture here, India’s Apollo Hospitals wants to make a full-scale return to the UAE. This could include setting up super-speciality hospitals or taking over management of existing ones.
But Apollo – the top privately-owned healthcare operator in India – will not get into setting up primary or secondary hospitals, at a time when the UAE has already seen increased capacities in these categories. Concerns have been expressed in several quarters that this risks all of that capacity going under-used. The investment division of Dubai Healthcare Authority has also sounded alerts about investors/operators needing to broaden the areas they should put their funds in.
“Saudi Arabia has said it would outsource some of its hospitals – there are some where Saudi players are bidding for these and where we are working as a technical partner. There are a few proposals we are looking at in Saudi Arabia and some in the UAE.
“If we wrap it up before the year-end, we will be more than happy to announce.”
Apollo has a presence in other Gulf markets
As it sizes up opportunities in the UAE and Saudi Arabia, Apollo’s has running hospitals in Muscat and Kuwait, and will shortly open another in Bahrain. Currently, overseas revenues make up about 10-15 per cent of its overall numbers, but Prasad wants to push that to the 20-25 per cent range in the next five years. This is where a direct UAE or Saudi presence could help.
As to why it exited that earlier joint venture, with Belhoul Group, Prasad said: “At that time, we wanted to focus as much of our attention and investments on expanding our presence in India. The board of directors realised there were so many opportunities… and at the time it was the right decision.” (Apollo still maintains a small operation in the Sharjah free zone, which serves more as “facilitation centre”.) For the last financial year, Apollo – which operates its flagship hospital in Chennai – recorded revenues of 96.48 billion rupees, up by 16.59 per cent. Net profit then came to 2.06 billion rupees.
Other benefits from a UAE presence
“India has the technology and the skills,” he said. “Half the world does not have access to high-end modalities – such as proton beams – to treat something like cancer. Across Southeast Asia, we are the only hospital to have it… and that’s in Chennai.
“We need to convince those in the Middle East who travel to the US and spend $150,000-$200,000 for their treatments to come to India and get the same done for $45,000-$50,000. It’s an argument we need to put out.” – Gulf News