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Shalby Hospitals positive on franchise and implants business growth

Shalby Hospitals is on an expansion spree, and they are looking to take up the franchise route for the same. The company is looking to add 50 centers in the next 3-5 years and has already signed up for 5 of them. Out of the 5, 2 units are operational currently and another 3 are expected to come up in the second half of this year. The company is targeting Rs. 15 crore -Rs. 20 crore more revenues this year from franchise business and for the future has shortlisted 30 cities for expanding through the franchise.

On the running business operation, Shanay Vikram Shah of Shalby Hospitals says that currently, they are witnessing significant pent-up demand in Q1FY23 with a 25 percent -30 percent volume uptick.

For the full year, he believes that the topline and bottom line can show a growth of 20 percent -30 percent in FY23 on the back of improved volumes.

Medical tourism is another factor expected to contribute to growth, currently the vertical has reached 80 percent of its pre-Covid level and management is expecting double-digit growth in medical tourism-led business to be witnessed pretty soon.

The asset light model with a franchise setup is expected to give a good boost to growth. The company is planning to invest Rs. 5 crores per franchise for medical equipment which is quite low from a working capital perspective. This will help the company to expand in newer geographies with less capital requirement where the company won’t invest in land and building.

Implant business is also a key focus area for growth by the management. They have been doing business in US and Japan and planning to expand more into newer geographies. Management if looking to do Rs. 100 crore of business this year from this vertical. India and Southeast Asia are the geographies where the company is planning to expand and introduce new products as well. The company aims to scale up the business from the implant business to manufacture 5,000 components in the near term versus 3,000 months now. Times Now

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