Narayana Hrudayalaya Ltd is recalibrating its growth strategy to strengthen its presence in core markets such as Bengaluru and Kolkata, moving away from an earlier bed-driven expansion model, Vice Chairman Viren Shetty said during an earnings call.
Articulating the group’s long-term vision, Shetty said the company remains committed to building a world-class healthcare institution that provides accessible and affordable care. However, he noted that the pathway to achieving this vision has evolved.
“The vision, as Dr. Shetty had always defined for us, is building a world-class healthcare institution that provides accessible, affordable care for everyone who comes in,” he said. “The objectives are to build a healthcare institution that can deliver on that. The goals are how we achieve those objectives.”
He said the company’s earlier approach of expanding bed capacity across multiple markets in a bid to build the largest footprint had diluted execution. Entering markets without adequate brand recognition and operational depth affected performance, prompting a strategic rethink.
Consolidation over rapid expansion
As part of its revised strategy, Narayana Hrudayalaya is now prioritising consolidation in its core markets, beginning with Bengaluru and Kolkata. The company also plans to scale up in other established markets such as Raipur, Ahmedabad, Jaipur, Delhi and Mumbai through a combination of hospitals, clinics and insurance offerings.
Shetty said the focus is on creating an integrated care model that enables patients to access services throughout the year, rather than engaging with the hospital chain only for specialised treatments such as cardiac or cancer care.
Over the next five years, the company aims to build a dense network in its core cities so that patients are never more than 25 minutes away from a Narayana Health centre, whether a hospital or clinic.
“With those points of presence, we would then work towards earning the trust of our patients, increasing our market share and the total overall health spend, including clinics, pharmacy, procedures and health insurance,” he said.
Capex focus on technology and oncology
The bulk of the company’s near-term capital expenditure will be directed towards Bengaluru and Kolkata. Expansion is also under way in Raipur, including scaling up the existing hospital there.
The company plans to invest in advanced medical equipment next year, including the addition of four Da Vinci robotic surgery systems, enabling all its hospitals to be equipped for robotic procedures. It will also expand oncology services across its network.
These are incremental investments aligned with strengthening our core offerings. It will be a measured and focused growth approach rather than aggressive geographic expansion, he pointed out.