India: Narayana Hrudayalaya to sell Hyderabad hospital

Visual from Narayana Hrudayalaya website

Multispecialty hospital chain Narayana Hrudayalaya Ltd on Tuesday said it will sell its Hyderabad hospital to its partner Chandramma Educational Society.

“As part of our regular strategic business reviews, we constantly monitor and assess risks and costs associated with all our business units,” said Ashutosh Raghuvanshi, vice-chairman, managing director and group chief executive of the Bengaluru-based Narayana Hrudayalaya, in a statement to exchanges. “Conforming to the same and in order to maximize gains for all the stakeholders, we deemed it appropriate to discontinue operations at our Hyderabad unit.”

The 195-bed hospital was taken on a 20-year lease with Chandramma Educational Society in July 2010. The hospital generated Rs.32.2 crore revenue in the nine months ended December 2015. These revenues constitute 2.7% of Narayana Hrudayalaya’s total revenue of Rs.1,181.50 crore.

Narayana Hrudayalaya shares rose 3.06% to Rs.296.70 on the BSE on Tuesday while Sensex fell 2.03% to 24,883.59 points.

Founded by renowned cardiac surgeon Devi Prasad Shetty in 2000, Narayana Hrudayalaya has a network of 22 hospitals and seven heart centres across the country with a bed capacity of 5,200. It plans to reach a capacity of 6,300 operational beds.

Raghuvanshi indicated that the company, which went public in January, is open to exiting hospitals that don’t meet its expectations. “We would continue to be flexible and pragmatic in the future as well to sustain the long term interests of the business,” added Raghuvanshi.

In February, Narayana Hrudayalaya bought 26% stake in a subsidiary Narayana Hrudayalaya Surgical Hospital Pvt. Ltd which maintains hospitals, clinics, and nursing homes for Rs.302.56 crore.

Chandramma Educational Society, founded by Malla Reddy, an educationist-turned-politician, also runs a private medical college, and pharmaceutical and engineering colleges, located on the outskirts of Hyderabad.

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This article was first published on Livemint.com

 

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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