Apollo Hospitals Enterprise is undergoing a significant restructuring process, spinning off its pharmacy and digital health businesses into a separate entity called Apollo HealthCo. Managing Director Suneeta Reddy has clarified that this decision is driven by a desire to enhance shareholder value and is not related to family differences or changes in promoter dynamics. The restructuring is intended to create focused value for shareholders by allowing each business to operate with tailored strategies and metrics.
The hospital business and pharmacy-digital business have fundamental differences, including their nature, return profile, growth drivers, and workforce. The hospital business is focused on healthcare services, while the pharmacy-digital business is retail-focused. The spin-off will allow each business to operate independently and make decisions that are best for their respective industries.
Apollo HealthCo is projected to achieve 20% growth and is expected to be listed by FY27. The hospitals business is expected to grow at 18% over the next three years. The company is pivoting towards preventive healthcare, driven by the increasing burden of non-communicable diseases in India. Key health challenges, such as genetic predisposition to cardiac problems, rising cancer incidences, and India’s large diabetic population, are driving this strategic shift.
The company has ambitious expansion plans, including continued focus on metro cities, building a significant presence in tier-I cities, and exploring opportunities in tier-II cities. Apollo is also open to asset-light models and acquisitions, recognizing the significant healthcare infrastructure gap in India.
The company is investing in technology, including telemedicine and AI-powered clinical intelligence, to scale high-quality clinical offerings to larger populations. Looking ahead, Apollo is preparing to serve diverse demographic cohorts, from the growing geriatric population to millennials and Gen Z, each requiring tailored healthcare approaches encompassing preventive health, lifestyle interventions, and nutraceuticals. The restructuring and expansion plans are intended to position Apollo for long-term success and growth in the healthcare industry.