Noida-based infrastructure conglomerate, Jaypee Group, plans to diversify into the healthcare sector with an initial investment of Rs 2,500 crore through their subsidiary, Jaypee Healthcare limited. Under its diversification plan, the company is about to launch its first multi-specialty hospital, Jaypee Hospital in Noida Sector 128. With the construction completed, the management hopes to open the hospital for the general public by the first week of June.
Under the first phase, the Group has invested over Rs 500 crore in the 525 bed hospital and going ahead plans to invest Rs 2,000 more towards the expansion of Jaypee Healthcare limited. While listing the expansion plans, Jaypee Healthcare's Chief Executive (Healthcare),Vikram Singh said, "Our current objective is to expand not only our Noida hospital but we also plan to launch four more hospitals."
While the Noida hospital would initially have 525 beds, the comp-any plans to expand it to above 1,200 beds in the next three to four years. "We are also planning to launch 500 bed hospital in Agra, Sahibabad and Kanpur. Along with, we would also launch a 250 bed hospital in Bulandshahr. We already have acquired the land required in these regions," Singh added.
When asked how much investment would be required for the entire expansion, company's Director, Rekha Dixit said, "We have already invested Rs 500 crore for setting up the Noida facility and plan to invest Rs 2,000 crore more on these expansions." All the expansions are expected to be completed in the next three to four years, Dixit added.
Commenting on the Noida based hospital, Dixit said, "It's a large facility with state-of the-art equipment and we plan to kick off operations. It took us three years to meticulously plan this hospital in order to create world class facility."
When asked in how much time the company hopes to achieve break-even in this new business, Singh responded, "We are expecting to achieve cash break even in the next three years while book break-even might taken one more year."
Placed inside Jaypee Township, the Noida hospital offers a wide range of services for all segments of the society. "We are competitively place to the market around us and aim to provide quality services at an affordable price," Singh replied whether the hospital be affordable to the common public.
Technology is another area where the company has heavily invested. Singh claims that the money spent on technology per bed for the group is the highest in the country, when pitted against rivals. Be it automated operation theaters or on floor pharmacy just for the intensive care units, there are numerous minor details, the company has done in their upcoming hospital chain.