Home / Business and Economy / Max Healthcare Plans Major Bed Expansion in 6 Months
Max Healthcare Plans Major Bed Expansion in 6 Months
18 Nov
Summary
- Max Healthcare aims to add 1,000 brownfield and 500 greenfield beds.
- Expansion is planned within the next six months, targeting FY26.
- Focus is on Return on Capital Employed, not Average Revenue Per Occupied Bed.
Max Healthcare Institute Ltd. is preparing for a substantial capacity expansion, with plans to introduce an "immense amount of capacity" in the upcoming six months. This strategic move is anticipated to include 1,000 brownfield beds and 500 greenfield beds by the end of FY26, according to Chairman and Managing Director Abhay Soi.
Soi indicated that the majority of the new capacity will be brownfield, which he expects to be highly beneficial to both revenue and profit. While acknowledging potential minor delays due to construction bans in Delhi during winter pollution periods, he downplayed their impact on the overall three-year project timelines.
The company's leadership views Average Revenue Per Occupied Bed (ARPOB) as a secondary metric. Soi stated that ARPOB is a "derived number" and not the primary focus, especially during periods of significant capacity addition. The main emphasis remains on optimizing Return on Capital Employed (ROCE).
