Rainbow Children’s Medicare, a childcare player based in Hyderabad, has announced plans to invest Rs 900 crore in expanding its operations and adding over 1,000 additional beds over the next four years. This expansion will increase the company’s total number of beds to over 2,600 across nine cities by 2027.
Currently, Rainbow Children’s Medicare operates 16 hospitals with around 1,640 beds in five states – Telangana, Andhra Pradesh, Tamil Nadu, Karnataka, and Delhi NCR. The company aims to establish eight more hospitals with over 1,000 beds in the next six years.
While a significant portion of the expansion will be funded through internal accruals, around Rs 120 crore will come from the proceeds of the company’s initial public offering (IPO) last year, which raised Rs 1,581 crore.
The largest expansion will take place in Delhi NCR, where Rainbow Children’s Medicare plans to add 450 beds through two greenfield projects. They have acquired two parcels of land in Gurugram, one for a 300-bed specialty children’s hospital and another for a 150-bed maternal and childcare hospital.
In addition to the expansion in Delhi NCR, Rainbow Children’s Medicare aims to add 110 beds in Hyderabad, two greenfield projects with 100 beds each in Rajahmundry and Nellore in Andhra Pradesh, and 205 beds in Tamil Nadu through projects in Chennai and Coimbatore. They are also building a 140-bed hospital in Sarjapur, Bengaluru.
The company is also exploring the possibility of setting up hospitals in Noida, Delhi NCR, and the North-East market. The expansion plans will be primarily driven by an asset-light strategy, where the company leases space for 20-30 years instead of acquiring land and building its own hospitals. This approach helps to mitigate the high costs of land in key cities.
Rainbow Children’s Medicare aims to continue its mission of providing specialized healthcare for children and expects the new hospitals to become operational over the next few years. With its expansion plans, the company is poised to make a significant impact in the healthcare sector, providing quality care to a larger population.