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Cloudnine to start three hospitals in Delhi soon

The 40 bedded each single specialty Cloudnine hospitals will come up at Punjabi Bagh, Vivek Vihar and Noida in Delhi-NCR

twitter-logo PB Jayakumar   New Delhi     Last Updated: December 11, 2017  | 18:35 IST
Cloudnine to start three hospitals in Delhi soon

Cloudnine Hospitals, India's leading chain of maternity, women and childcare hospitals will soon start three hospitals in Delhi and Bangalore. The 40 bedded each single specialty Cloudnine hospitals will come up at Punjabi Bagh, Vivek Vihar and Noida in Delhi-NCR and another facility in Bengaluru, said MA Rohit, co-founder and managing director, Cloudnine Group of Hospitals.

"These facilities are under various stages of development and we were opening 4-5 facilities every year for the past 2-3 years, and have lined up a similar growth till 2019," he said. Cloudnine, the first maternity specialty chain in India started in 2007, now runs 19 facilities in six cities - nine in Bangalore, one in Chennai, three in Mumbai, two each in Gurgaon, Pune and one in Chandigarh. Each of these facilities is about 40 bedded employing 3-4 gynecologists and neonatology specialists. Set up at a cost of Rs 20-22 crore per facility, an average 180 births happen in each of these centres a month, Rohit told Business Today.

The Rs 400 crore revenue Cloudnine, growing at 35-40 per cent in the last three years, is the largest maternity hospital chain and almost four times larger than its nearest competitor, Apollo's Cradle. Many maternity single specialty hospitals have come up in the country and put together, they have invested over Rs 2,000 crore. The potential is huge, as 51 babies are born every minute in the country.

On average it takes only 10-12 months for a facility to break-even, where as a 250 bedded multi-specialty hospital requires 5-7 year gestation period. Unlike many chain hospitals, who prefer asset-light management model, Cloudnine owns all its facilities. Its pricing is about 10 per cent less than corporate hospitals, but offers facilities at par with any international maternity hospitals, said Rohit. At present three private equity funds, Matrix Partners, Sequoia Capital and TrueNorth own a little over 50 per cent stake in Cloudnine. In 2011, Matrix invested Rs 50 crore and two years later, Sequoia Capital and Matrix together infused another Rs 110 crore. Two years ago, TrueNorth invested about Rs 400 crore in Cloudnine.

 

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