Park Medi World IPO

Second Largest Private Hospital Chain in North India and Largest in Haryana

Park Medi World Limited is the second largest private hospital chain in North India with 3,000 beds and the largest in Haryana with 1,600 beds as of September 2024. Since its incorporation in 2011, it has expanded through organic growth and acquisitions, adopting a cluster-based approach for operational efficiency. The network includes 13 NABH-accredited multi-specialty hospitals across North India, equipped with advanced medical facilities and dedicated ICU beds, trauma centers, and transplant approvals. Leveraging regional expertise, Park Medi World aims to meet the growing demand for quality, affordable healthcare while capitalizing on market growth and economies of scale

Delivering High-Quality, Affordable Healthcare with Diverse Specialties

Park Medi World Limited is committed to providing affordable, high-quality healthcare to diverse patients, mainly from lower and middle-class segments. Leveraging advanced medical technology, robotics, and economies of scale, it offers over 30 specialty services. Efficient cost management and innovation enable superior patient outcomes while maintaining profitability and expanding access across its hospital network.

Proven Expertise in Hospital Acquisitions and Integration

Park Medi World Limited has successfully acquired and integrated seven hospitals across North India, adding 1,650 beds to its network. These strategic acquisitions expanded its geographic presence, boosted revenues, and strengthened profitability. The company standardizes operations and aligns cost structures to maintain quality care and efficiency, with acquired hospitals consistently contributing over 50% to revenue, EBITDA, and profits.

Strong Operational and Financial Performance with Diversified Payor Mix

Park Medi World Limited consistently delivers robust operational and financial results by focusing on high-quality care, patient volume growth, and cost efficiency. Leveraging asset ownership and economies of scale, it achieves strong profitability and a diversified revenue base from government schemes, insurance, and individual patients, maintaining one of the lowest costs per bed among peers.

Doctor-Led Professional Management Team with Extensive Industry Experience

Park Medi World Limited’s leadership, led by founder Dr. Ajit Gupta and senior management with over 20 years of medical and financial expertise, drives its success. Their combined experience across medicine, finance, and operations has been key to establishing the company as a leading hospital chain in North India with strong brand equity.

More About Park Medi World Limited

Park Medi World Limited is recognised as the second-largest private hospital chain in North India, with a total planned bed capacity of 3,000 beds as of September 30, 2024. It also holds the distinction of being the largest private hospital chain in Haryana, offering 1,600 beds across the state

Network and Accreditations

The company operates a network of 13 NABH-accredited multi-super specialty hospitals under the ‘Park’ brand. Among these:

• 7 hospitals are NABL accredited

• 8 hospitals are in Haryana

• 1 hospital in New Delhi

• 2 hospitals each in Punjab and Rajasthan

These hospitals provide over 30 super-specialty and specialty services, including neurology, urology, internal medicine, gastroenterology, general surgery, orthopaedics, and oncology. As of September 2024, the network comprises 891 doctors and 1,912 nurses.

Journey and Expansion Strategy

Founded by Dr. Ajit Gupta, who began his medical journey in 1981, the first Park Hospital was set up in New Delhi in 2005 and later transferred to the company in 2011. Key developments include:

• Hospital expansions in Gurugram (2012, 2019) and Panipat (2016)

• Acquisitions across Faridabad, Karnal, Ambala, Behror, Palam Vihar, Sonipat, and Mohali

The company’s cluster-based approach enhances operational efficiencies and economies of scale. Notably, acquired hospitals contributed:

• 54.24% of revenue

• 47.32% of EBITDA

• 56.30% of profit after tax (H1 FY2025)

Current Infrastructure and Future Plans

• 805 ICU beds and 63 operating theatres

• Oxygen generation plants at all facilities

• Two cancer units with linear accelerators

• Three iMARS institutes offering advanced robotic surgeries

Expansion Plans

• Ambala: Expansion from 250 to 450 beds with an onco-radiation facility by October 2027

• Panchkula: 300-bed hospital by April 2026

• Rohtak: 250-bed hospital by December 2026

• Gorakhpur: 400-bed hospital under a 30-year operations and management agreement, starting April 2026

• Resolution plan submitted by subsidiary Blue Heavens to acquire Febris Multi Specialty Hospital, New Delhi

Leadership

• Dr. Ajit Gupta, Founder and Chairman, with over 25 years in the medical field

• Dr. Ankit Gupta, Managing Director, with over 20 years of experience, leading the organisation’s transformation into a trusted healthcare brand

Industry Outlook

Market Size & Growth

• The Indian healthcare sector is projected to reach $638 billion by 2025, up from $372 billion in 2023, marking a 17.5% CAGR over the past decade.

• The hospital segment, constituting 80% of the healthcare market, was valued at $98.98 billion in 2023 and is expected to grow at an 8% CAGR, reaching $193.59 billion by 2032.

Key Growth Drivers

• Rising Non-Communicable Diseases (NCDs): NCDs account for 63% of deaths in India, increasing demand for specialized care.

• Medical Tourism: India’s medical tourism market is valued at $7.69 billion in 2024, projected to reach $14.31 billion by 2029, driven by cost-effective treatments and quality care.

• Government Initiatives: Programs like Ayushman Bharat aim to provide health coverage to over 500 million people, enhancing access to healthcare services.

• Technological Advancements: Integration of AI, telemedicine, and digital health records is transforming healthcare delivery.

Hospital Infrastructure & Expansion

• Bed Capacity Expansion: ICRA projects the addition of over 4,000 beds in FY2025 and another 3,400 beds in FY2026 by major hospital chains.

• Tier 2 & 3 City Focus: Investments are increasing in smaller cities to bridge the urban-rural healthcare divide.

Digital Health & Innovation

• Telemedicine Growth: The telemedicine market is expected to reach $5.4 billion by 2025, growing at a 31% CAGR. HealthTech Sector: Projected to grow significantly, reaching ₹4.2 lakh crore over the next decade, driven by consumer-facing applications and enterprise solutions

How Will Park Medi World Limited Benefit

• Positioned to capitalise on India’s projected $638 billion healthcare market by 2025.

• Poised to benefit from the hospital sector’s 8% CAGR, expected to reach $193.59 billion by 2032.

• Expansion aligns with increasing demand for specialised care driven by rising non-communicable diseases.

• Strong presence in Tier 2 and Tier 3 cities supports government push for rural healthcare access.

• Investment in telemedicine and robotic surgery matches sector-wide digital health growth.

• NABH and NABL accreditations enhance trust amid growing medical tourism valued at $7.69 billion.

• Capacity growth aligns with projected addition of 7,400 hospital beds across India by FY2026.

• Technological infrastructure supports India’s booming ₹4.2 lakh crore healthtech ecosystem.

• Leverages government schemes like Ayushman Bharat for increased patient inflow and affordability.

• Leadership experience and focused expansion strategy position it for long-term scalability and brand strength.

Peer Group Comparison

Name of Company	Face Value (₹)	P/E	Total Income (₹ million)	EPS (₹)	NAV (₹)	RONW (%)
Park Medi Limited	2	TBD	12,630.84	3.95	21.23	18.81%
Peer Groups
Apollo Hospitals Enterprise Limited	5	99.46	1,91,655	62.50	481.60	12.98%
Fortis Healthcare Limited	10	79.38	69,312	7.93	101.50	7.82%
Narayana Hrudalaya Limited	10	40.30	50,934	38.86	141.03	27.39%
Max Healthcare Institute Limited	10	90.53	55,841	10.89	86.51	12.58%
Krishna Institute of Medical Sciences Limited	2	66.14	25,112	7.75	45.69	16.96%
Global Health Limited	2	68.90	33,498	17.80	107.77	16.53%
Jupiter Lifeline Hospitals Ltd	10	52.10	10,955	28.65	178.30	15.11%
Yatharth Hospital & Trauma Care Services Limited	10	27.01	6,862	14.46	101.84	13.09%

Key Strategies for Park Medi World Limited

Expanding Hospital Network in North India

Park Medi World Limited focuses on growing its hospital network in North India through acquisitions and organic growth. It targets facilities with 200+ beds, aiming for strategic locations to improve healthcare access and efficiency, leveraging the region’s rising demand for quality, affordable healthcare services.

Growth into Adjacent Markets

The company plans to extend its presence into neighbouring markets by establishing hospitals near existing locations. This cluster approach enhances brand strength, operational efficiency, and economies of scale. Expansion into Uttar Pradesh exemplifies this strategy, with operations starting soon at a 400-bed hospital in Gorakhpur.

Scaling Operations and Enhancing Efficiencies

Park Medi World Limited aims to boost occupancy and operational scale by investing in advanced technology, clinical programs, and skilled medical staff. The company emphasises robotic surgeries and specialty services, improving patient outcomes and broadening treatment options, while targeting middle-class patients and expanding insurance and international patient coverage.

Attracting and Retaining Skilled Medical Professionals

A core strategy involves attracting and retaining experienced doctors and clinicians through continuous training, leadership development, and international collaborations. The company supports its medical staff with advanced tools, global best practices, and professional development programs to maintain high-quality healthcare standards across its hospitals.