Capacity Addition at Global Health Limited
Global Health Limited, with a current capacity of ~2,890 beds as of June 30, 2024, is planning a significant capacity addition. The company’s consolidated capacity utilization for the first quarter of fiscal year 2025 was ~59%.
- Global Health Limited’s board of directors has approved an agreement with Dr. Narayan Dutt Shrimali Foundation International Charitable Trust Society to operate and manage a 750-bed hospital in Pitampura, New Delhi.
- The agreement stipulates that the Society will develop the hospital building and associated civil infrastructure, while Medanta will invest in internal fitouts, MEP (mechanical, electrical, and plumbing), furniture, and medical equipment.
- This capacity addition of ~750 beds is projected to be completed within approximately 4 years, contingent upon necessary statutory and customary approvals.
- The project’s capital expenditure is estimated to reach up to ~Rs. 600 crores over the next 3-4 years, with funding coming from both internal accruals and debt financing.
The rationale behind this capacity addition is to expand Medanta’s presence into the high-growth, densely populated micro-markets of Northwest and West Delhi. The new hospital, situated on a 7-acre site in Pitampura with a built-up area of 7.6 Lakh sq.ft (excluding the basement), will enable Medanta to serve the region’s increasing healthcare needs. The site’s strategic location with good connectivity to the Outer Ring road and proximity to high-density residential areas further strengthens its potential. This expansion will allow Medanta to deliver the highest standard of quaternary care to a wider population.