Aster DM Targets Tier-2 Cities to Challenge Apollo Hospitals' Lead

Aster DM Healthcare has established its objective to become India’s largest hospital chain, implementing an aggressive expansion plan in Tier-2 cities like Indore, Raipur, Aurangabad and Bhubaneswar.

This expansion is supported by Blackstone through the recent merger with Quality Care India. Aster is rapidly ramping up its Indian operations as it aims to compete with matured players like Apollo Hospitals.

Post merger, Aster has 10,300+ beds of capacity versus Apollo’s ~10,187 beds. While Aster holds the lead by 113 beds, it is still in a competitive industry. Aster aims to add 3,300 beds before FY27 for a total capacity of 13,600, while Apollo plans to increase capacity to over 14,400 in that time frame.

To fund its growth, Aster has allocated  ?1,900 crore capex and approved greenfield and brownfield expansions, such as building a women and children’s hospital in Hyderabad as well as heavy expansion in Bengaluru and Kerala, and continue to entrench itself further in southern India while expanding into central and northern regions.

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Aster is expected to achieve strategic synergies from the merger, resulting in 10–15% cost efficiencies and improve its EBITDA margin from 20.5% to 23–24%. With an eye on both organic and inorganic growth, Aster DM is positioning itself as a strong contender in India’s booming healthcare market.