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00:00Good morning and welcome back to NDTV Profit.
00:12We are now taking stock of Kim's and we are now joined by Mr. Bhaskar Rao, the Chairman
00:17and Managing Director.
00:18Good morning sir and thank you so much for joining us today here at NDTV Profit.
00:23Good morning.
00:24Now sir, I just wanted to start with FI24 and how the year has been and it's been a
00:30decent set of numbers but not so much on growth per se.
00:35We've seen some muted growth in your home market of Telangana as well.
00:39I just wanted to start with and you mentioned this before that it's largely because of some
00:44capacity constraints in FI24.
00:46We are seeing some additions in this particular market.
00:50I just wanted to start with if you could talk us through that and how do you see this
00:55particular year panning out in FI25?
00:58See, 25 is definitely a better one as I mentioned last year we have two.
01:05One is the shifting of sunshine got delayed and now it has come to the full capacity and
01:11it has been turned around very well and there is another in Kondapur that is also constrained
01:18in the bed capacity that is also going to be finishing next one year in the middle
01:23of 25 it will start with that and we are very confident Telangana will do well because what
01:33we created the brand and as well as the comfort zone towards the patients as well as and with
01:41all these things we are very comfortable.
01:44This last quarter or maybe last year is because of the one shifting of sunshine to a new place.
01:51Second is the elections and third thing was the bed capacity was not up to the mark.
01:58With all these things rectified, third and fourth quarter of the other capacity also
02:04will add in Kondapur in 25 I think it's a good year and I'm very sure that we will able
02:10to achieve what we projected and what we have been hoping for to get into the 25th and 26th.
02:17Now just I wanted to speak a little bit more on Kondapur I think you mentioned that there
02:23is a capacity addition that's happening in Q3 and Q4 of this year.
02:27What would be the bed capacity addition for this specifically and also on this particular
02:32region as well because we have seen some competition as well which have been adding capacity and
02:37over the last three to four years it's become sort of like a micro market in this particular
02:43region.
02:44Could you just talk us through both on these aspects on capacity additions as well as competition
02:48how do you see in this particular market evolving in the long term?
02:53So in the next three to five years we are going to add up nearly 600 beds.
02:58Today we are about having 200 beds.
03:01Probably in the next last quarter of 25 early 26 we will add another 200 beds, 250 beds
03:08total 450 beds at the micro market and you are rightly saying that there are many available
03:15opportunities are there but still we have our own consultants and the population and
03:23the type of therapies that we are going to add and as of now we are doing a 100 percent
03:29almost 95 percent occupancy in the existing block.
03:32The moment when we shift we are going to add few more new therapies that we are very confident
03:39that in that micro market we are well established even though many hospitals has come in that
03:44micro market we have not lost any consultants maybe one consultant we lost.
03:52So with that our consultants are very dedicated and committed they are looking for a good
03:57feature in this organization and the patients are also welcoming that so I think we are
04:03very very confident that we will be able to do a better job there.
04:07In spite of a huge competition that is building up we are the first one who come to that micro
04:13market so that's why we want to retain the same status moving forward that's why we are
04:19building this another 500 600 beds we are adding over a period of time.
04:25Another region that you know Kim's is very strong in is Secunderabad we have seen you
04:31know in the past year you have mentioned that there has been a lot of engagement with doctors
04:35in this particular but there has been a slight delay in hiring firstly has that been resolved
04:40and secondly you did mention for this particular market as well that you are doing capacity
04:45additions as well what's the status on that for Secunderabad specifically?
04:50Secunderabad as you rightly pointed out that hiring of these doctors who have been commenced
04:56they are a little bit delayed but still they are committed to come and even what we have
05:03been negotiated with other people even the new people who are coming from freshly people
05:09that's why we are taking here also we are trying to add another new capacity of which we the block
05:16one block two what we have we have demolished to improve the more facilities to the patients
05:21and as well as more consultation rooms more number of beds with a high quality because
05:26it's already 20 year old running facility we are very confident even Secunderabad is also
05:33do very well in moving forward because the new therapies that we have been adding
05:38which are not existing in this micro market and they have been shown especially we added
05:44this heart and lung transplant we are the one who are doing about nearly 100 heart lung transplants
05:49in a year that itself like that we are planning to identify a few more new therapies
05:55which will able to improve and also the existing specialties like a gastro cardiac renal neuro
06:03still there is a scope to improve in this because of the patient liking towards this hospital and
06:11the consultants and i'm sure the existing specialties also there will be a growth including
06:17all two and all we are very confident that we'll definitely do much better than what we are expecting
06:24got it sir that's good to hear now one important thing that's that's been you know a
06:29standout over the last 12 to 18 months has been Kim's entry in in Maharashtra now specifically
06:35you had mentioned that there has been a capacity addition of roughly 300 beds in Nashik
06:40i just wanted to confirm if if that has been completed and is commissioned already and secondly
06:46you will also be adding another facility in Thane with annual entry in in Mumbai now which i think
06:52will get commissioned over the next 18 to 24 months so just on these two specifically
06:58if you could update us on that sir so as a new market we have shown last 18 months in Nagpur
07:06in Maharashtra which as we anticipated we turn around it may be get delayed a quarter or quarter
07:12and a half what we anticipate about the top line what we expected we achieved by this and still
07:19there is a keep growing up so that is one positive thing where we could able to showcase what we
07:25planned in the new area and Nashik is already totally completed maybe in a month's time we
07:31will start commissioning that unit a little bit of statutory licenses we are waiting for it
07:38otherwise everything is done and we are very very confident all the consultants whom we anticipated
07:44for Nashik they are already on board and with that we are very sure in next two to three quarters
07:52even we don't wait for a full year we'll be turn around and we can able to showcase
07:58and the Thane one I think definitely in the next two to three quarters it will be commissioned
08:03even there is a lot of interest amongst the consultants who wants to join in Thane project
08:11so we are very confident maybe whatever we say that unless we show that maybe in the next four
08:18quarters Thane will be definitely showing some progress what we anticipated. I think just one
08:25follow-up question on Nashik do you see it being a bit positive in post the first year itself
08:33because we have seen that previously you have been able to achieve that which is a remarkable feat
08:37do you see that happening for this particular facility as well and secondly just a broad
08:42question on your entry in Mumbai now it's a very it's a very competitive market in general how do
08:48you see this particular market in comparison to other geographies specifically in Maharashtra as
08:54well as in other states that you are present in like Andhra Pradesh and Telangana as well
09:00see basically as far as Nashik is concerned definitely less than a year we will be a bit
09:04of positive and we are very very confident that time only will tell us so there is no issue on
09:10that because the type of doctors what we anticipated and all hundred percent what we anticipated they
09:17are boarded so there will not be any delay in that so that's why we are very confident as far
09:22as Thane is concerned there is a micro market where still there is a lot more bed requirement
09:28is there that's why we have been selected there and both patients looking for a good facility
09:34and as well as the consultants are also looking we are also almost on the process of engaging the
09:42doctors the way the response coming from the consultants and we are very sure that we can also
09:48do a good job there in Thane also because that micro market is definitely requires
09:55few more beds and there is under penetrated as far as the bed capacity for the population is
10:01concerned similarly as such Bombay is not at all over served it is underserved when compared to
10:11Hyderabad and Bangalore the capacity of the public and the number of beds and the specialties that
10:16are available which are not existing even today a city like Bombay where we are doing more than
10:23200-300 livers in a year more than that in Hyderabad that many are not happening transplants
10:30hardly any lung transplants are happening even we are helping them in Bombay to do few hospitals
10:37to do the lung transplant program so once that is coming and I think definitely Bombay is a
10:44very good potential to even grow but being a as everybody is anticipating that is a new market
10:51and Kim's is entering into there let us wait and see for the next two three to four quarters
10:57understood Mr. Rao well thank you so much sir for joining us today you're at AATV profit we wish
11:02you the best for this fiscal year and we look forward to talking to you next post your Q1
11:06results but thank you so much for joining us today sir thank you thank you very much