Global healthcare provider Aster DM Healthcare plans to invest ₹1,400 crore over the next five years to expand its operations across India. The investment will cover both greenfield and brownfield projects, with ₹350–400 crore already deployed, the company told Business Today.
As part of its broader expansion plan, Aster intends to add 1,700 beds to its network by FY27, bringing its total capacity in India to 6,800 beds. The company is focusing on key regions like Kerala, Karnataka, and Hyderabad as part of its strategy to broaden its reach.
This expansion is part of Aster’s broader vision to strengthen its healthcare network and diversify into new areas, including digital healthcare, artificial intelligence (AI)-driven diagnostics, and home care services. “We are determined not just to grow in terms of infrastructure but also to adopt new technologies to improve patient care and overall healthcare delivery,” Dr. Azad Moopen, Founder and Chairman of Aster DM Healthcare, told BT.
The launch of the ‘Aster Health’ app, which allows patients to book consultations, access medical records, and order medicines, is a step toward expanding Aster’s digital health services. The company is also exploring opportunities in health insurance and managed care to meet the growing demand for more affordable and accessible healthcare.
A key development for Aster has been its merger with Quality Care India Limited, consolidating several prominent healthcare assets such as CARE Hospitals, KIMSHEALTH, and Evercare. The merger strengthens Aster’s position within India’s competitive healthcare sector, expanding its footprint to 38 hospitals with over 10,000 beds across 27 cities. The combined entity reported ₹7,314 crore in revenue for FY24, with an adjusted EBITDA of ₹1,396 crore.
Dr. Moopen highlighted the operational efficiencies the merger brings: “The merger presents an opportunity to optimise our resources, standardise care protocols, and drive operational synergies across our network. This will help us better serve our patients by delivering care more efficiently,” he said.
The merger is also expected to improve Aster’s bargaining power with suppliers, positioning the company to capture more market share in both metropolitan and tier-2 cities, he added.
Aster’s expansion strategy is particularly focused on the states of Kerala, Karnataka, and Hyderabad. In Kerala, the company plans to invest ₹850 crore over the next three years. Among the key projects is the development of a 454-bed tertiary care hospital in Trivandrum and a 264-bed multispecialty facility in Kasaragod. In Kochi, Aster Medcity is set to undergo an upgrade, adding 100 beds by FY25.
“We have a solid foundation in Kerala, and we are committed to strengthening our presence there while expanding into other regions,” Dr. Moopen said. “Our aim is to provide high-quality care where it is needed most.”
The Indian healthcare market is becoming increasingly competitive, with major players like Apollo Hospitals and Manipal Hospitals. However, Dr. Moopen believes Aster’s strategy of consolidation, along with regional expansion, positions it to stand apart. He explained, “We are not only focused on growth but also on integrating cutting-edge technologies to improve patient outcomes and efficiency. This approach will help us differentiate ourselves in the market.”
Dr. Moopen also highlighted Aster’s focus on expanding into underserved regions. “While we have a strong presence in the South, we are actively looking to expand into the North and strengthen our national presence. We are especially focused on smaller cities where the healthcare gap is more pronounced,” he added.
Aster is not limiting its expansion to hospitals alone. The company is broadening its portfolio by investing in digital healthcare services. The ‘Aster Health’ app, launched recently, is part of this move. Through the app, patients can book consultations, access medical records, and order medicines. Additionally, Aster is working on AI-driven diagnostics, including the development of an AI tool for diagnosing Carpal Tunnel Syndrome in collaboration with the Indian Institute of Science.
Aster’s home healthcare service, Aster@Home, is another growing area. The service provides essential healthcare services such as doctor consultations, physiotherapy, and diagnostics at patients’ homes. Dr. Moopen stated, “India’s ageing population and rising demand for home-based healthcare services create a significant opportunity for Aster in this space.”
Aster DM Healthcare has a robust presence in South India, but Dr. Moopen made it clear that the company’s ambitions extend beyond the region. Following the merger, Aster now has a footprint in Central India, with hospitals in tier-2 and tier-3 cities. He added, “Our vision is to offer accessible, affordable, and high-quality healthcare services across India, focusing not just on metropolitan areas but also on smaller cities and rural regions.”
Looking forward, Dr. Moopen expressed confidence in Aster’s ability to capitalise on the growing healthcare demand. “We are well-positioned to continue expanding our reach and meeting the diverse needs of India’s healthcare market,” he said.
