Date:13/09/2005 URL: http://www.thehindubusinessline.com/2005/09/13/stories/2005091302420300.htm

Back Apollo Hospitals to expand Cradle brand

Our Bureau

New Delhi , Sept. 12

THE Apollo Hospitals group is looking to expand its Cradle brand of boutique birthing centres by entering into franchising agreements with local partners.

On Monday, it signed an agreement with Arvind Medicare to start such a centre in Gurgaon, Haryana.

The Apollo group plans to set up four-five such birthing centres in the country and abroad especially in metros such as Mumbai, Ahmedabad, Bangalore, Jalandhar, Ludhiana and Chandigarh.

Speaking to newspersons, Ms Preetha Reddy, Managing Director, Apollo Hospitals said, "Apollo has worked mainly in concept development, setting the standards and creating a brand.

"A large portion of the investment of a hospital is done by a franchisee."

Typically, the investments required for setting up a `Cradle' is Rs 10 crore.

Meanwhile, the company has had a setback of sorts after the franchisee-promoters of an existing Cradle in Delhi decided to offload 26 per cent stake to rival Fortis Healthcare.

Apollo Hospitals teamed up with Sunrise Medicare to launch the first designer birthing centre.

Sunrise Medicare Ltd is 50:50 joint venture promoted by Mr Amit Burman of the Dabur group and the Talwar group, a car components manufacturer and a Mercedes Benz dealer in North India.

"The Talwar group wanted to focus on its auto business and have decided to disengage from the business. With Fortis picking up stake, they would no longer have the right to operate under the Cradle brand name," said Ms Reddy.

Besides Cradle, Apollo Hospitals is also focusing on the First Med brand of hospitals.

It hopes to launch one in Bangalore after its presence in Chennai.

Ms Reddy also added that the company has not ruled out acquisitions to grow.

She, however, said the group is not in talks with the Escorts group run Heart Institute, which is reported to be up for sale.

"We are not closed to acquisitions and if some excellent properties comes our way, we will invest in them. As of now, there are no greenfield projects in the horizon," Ms Reddy said.

The Apollo scrip closed at Rs 400 on Monday on the BSE, up from last month's closing price of Rs 372.85.