India’s top private hospital chains are set to invest nearly Rs 40,000 crore over the next 3 to 5 years to address the country’s widening healthcare infrastructure gap. This massive expansion drive will see over 34,000 new hospital beds added by FY29, according to industry estimates.
The expansion is heavily focused in North and South India, which will account for about 46% and 30% of the new capacity, respectively. The West will get 13%, while East and Central India will collectively receive the remaining 11%. Notably, around 38-40% of the new beds—approximately 14,000—are planned for Tier-2 and Tier-3 cities, signaling a shift beyond the major metro hubs.
The rising demand for healthcare services, driven by urbanisation, lifestyle diseases, and heightened health awareness post-pandemic, is pushing private players to accelerate their growth plans. Currently, private hospitals provide around 60-65% of India’s hospital beds. With public healthcare struggling to match demand, the private sector is stepping in with large-scale expansions involving greenfield projects, brownfield developments, and acquisitions.
Major Players and Their Expansion Plans:
Apollo is rolling out a two-phase plan to expand its bed capacity by 34.5%, adding 3,512 beds to its current base of 10,169. With a total investment of Rs 6,100 crore, Phase 1 (by FY26) will add 1,737 beds in Pune, Kolkata, Hyderabad, and Gurgaon at Rs 2,880 crore. Phase 2 (FY26–FY29) will introduce 1,775 beds in Chennai, Varanasi, Mumbai, and Lucknow with a Rs 3,220 crore outlay.
Managing Director Suneeta Reddy emphasized the focus on enhancing specialized centers and maximizing asset utilization to boost revenue and profitability.
Max is targeting a 76% increase in bed capacity by FY28, adding 3,700 beds to its current 5,036-bed network. With Rs 5,000 crore allocated for capex between FY26 and FY28, most of the expansion will occur in metro cities, with some investments also going to Tier-2 locations. The company also has land to support an additional 4,000 beds post-FY28.
Gurgaon-based Artemis plans to more than double its bed strength from 800 to over 2,000 in five years. The focus is on Delhi-NCR and select Tier-2 cities in northern India. The International Finance Corporation (IFC) has invested Rs 330 crore into this expansion, which includes a 300+ bed hospital in Raipur.
Jupiter, based in Mumbai, is investing Rs 1,350 crore to build three greenfield hospitals in Western India, adding 1,300 beds—doubling its current capacity. CEO Ankit Thakker said the focus remains on Tier-1 cities where demand for advanced healthcare is surging.
Credit rating agency ICRA notes that the addition of 34,000 beds by FY29 represents a 2.3-2.5% increase in the private hospital bed base in India. The estimated Rs 40,000 crore investment will be funded through internal accruals, cash reserves, and new debt. The diverse strategies employed—greenfield, brownfield, and acquisitions—reflect the sector’s response to India’s growing healthcare needs.
Source of Information: Medical Buyer
