Virinchi commences phase II of healthcare expansion at its Banjara Hills facility

Virinchi has completed 2 years of operations since the launch of phase 1 of the 600-bed flagship facility at Banjara Hills, Telangana. The healthcare operations over the past 2 years in the flagship hospital have stabilized reporting total healthcare revenue of Rs. 101 crore and EBITDA of Rs. 20 crore across 550 operating beds (350 at Banjara Hills and 200 in two smaller facilities). The project work for phase II of the healthcare expansion at the Banjara Hills facility to serve economy patients to maximize benefits from the new initiatives of GoI viz., Ayushman Bharat and also start a full-fledged oncology department has been commenced. Phase II of the healthcare expansion would consist of 150 economy and 100 oncology beds, costing around
Rs. 70–80 crore.

The radiation oncology involving bunkers to house linear accelerators will require 12–14 months for completion. Phase II is planned to be supported through internal accruals, supplier credit, and institutional debt. ECL Finance Limited (Edelweiss) is supporting Virinchi by offering a Rs. 35 crore debt, which will be taken up in tranches based on needs. This includes taking over existing debt from other institutions to the extent of around Rs. 11 crore.

As part of the terms and conditions of the loan, the promoters have offered their personal guarantee and also Rs. 15 crore worth of shares of the company held by them as collateral. With completion of phase II, all of the planned 800 beds of the Banjara Hills facility will be operational, providing patient services in over 40 clinical departments.