The Chennai-based Dr Agarwal’s Eye Hospital chain has announced a ₹600-crore expansion plan to scale up its operations in India and abroad over the next five years.

It currently has 60 hospitals and will add 140 by 2020.

Amar Agarwal, Chairman and Managing Director said the investment will happen in two phases. “Since our debt is low, around ₹20-25 crore, we will raise more funds through debt, internal accruals and private equity,” he added.

The chain is targeting a total of 200 hospitals with 150 in India and 50 in Africa, West Asia, Vietnam, Cambodia and the Philippines.

The group is strengthening its presence in southern India by opening three hospitals in Kerala. The chain already has hospitals in Tamil Nadu, Karnataka, Telangana and Andhra Pradesh. Agarwal said: “We are planning to continue our expansion in the East and West of India.” The chain recently commenced its operation in Kolkata co-branding with Peerless Hospital, a well-known hospital chain there, taking over its eye care operations.

“We are looking at organic and inorganic growth,” Agrawal said and added that they are looking at Gujarat, New Delhi, Maharashtra and Punjab for the next stage of development.

The model adopted by the chain is hub and spoke model, wherein each State will have hubs that offer specialised services, such as cataract surgeries, while the hospitals in the surrounding areas will offer regular treatment.

The chain will be ending the current fiscal with a turnover of ₹400 crore and is looking at ₹500 crore at the end of 2016-17. Agarwal said, “We are expecting to clock a revenue of ₹1,000 crore with 25 per cent EBITA by 2019-2020.”

The chain currently employs 250 doctors and 2,500 support staff. Once the expansion is complete, it will have 600-700 doctors and 7,500 support staff.

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