KIMS Hospitals Signs Chennai Land Lease for New 300-Bed Super Specialty Facility
Krishna Institute of Medical Sciences announces strategic expansion into Tamil Nadu through a lease agreement for establishing a 300-bed super specialty hospital in Chennai. The project involves ₹300.00 crore investment over 36 months, funded through bank loans and internal accruals, marking the company's first presence in Tamil Nadu healthcare market.
*this image is generated using AI for illustrative purposes only.
Krishna Institute of Medical Sciences Limited has announced a strategic expansion into Tamil Nadu through a leave and license agreement with Andhra Mahila Sabha for establishing a new super specialty hospital in Chennai. The healthcare provider disclosed this development in a regulatory filing under SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
Land Acquisition Details
The company has secured land measuring approximately 1.168 acres, equivalent to 21.19 grounds, located at Dr. Durgabai Deshmukh Road, Raja Annamalai Puram, Chennai, Tamil Nadu. The long-term lease arrangement will facilitate the establishment of a super specialty hospital, marking the company's first foray into the Tamil Nadu healthcare market.
| Parameter: | Details |
|---|---|
| Land Area: | 1.168 acres (21.19 grounds) |
| Location: | Dr. Durgabai Deshmukh Road, Raja Annamalai Puram, Chennai |
| Lease Partner: | Andhra Mahila Sabha |
| Purpose: | Super Specialty Hospital |
Project Investment and Capacity
The Chennai facility represents a substantial investment commitment for the healthcare chain. The project specifications demonstrate the company's commitment to expanding its footprint in South India's healthcare sector.
| Investment Details: | Specifications |
|---|---|
| Total Investment: | ₹300.00 crores (approximately) |
| Proposed Capacity: | 300 beds (approximately) |
| Implementation Timeline: | 36 months |
| Financing Mode: | Bank loans and internal accruals |
Current Operational Metrics
Krishna Institute of Medical Sciences and its subsidiaries operate with significant scale across their existing network. The company's current operational performance provides context for this expansion initiative.
| Operational Metrics: | Current Status |
|---|---|
| Overall Bed Capacity: | 8,800 beds |
| Capacity Utilization: | 51.00% |
| Geographic Presence: | Multiple states |
Strategic Rationale
The company has positioned this expansion as a significant strategic milestone that will establish its maiden presence in Tamil Nadu. Management expects the project to drive improved operational performance and generate sustainable long-term financial returns. The Chennai location strategically positions the company to serve the healthcare needs of Tamil Nadu's population while expanding its geographic diversification.
Financing Structure
The ₹300.00 crore investment will be funded through a combination of bank loans and internal accruals. This financing approach covers multiple components of the project including lease rental payments, hospital construction, and medical equipment procurement. The diversified funding structure reflects the company's balanced approach to managing capital requirements for this expansion.
The project timeline of 36 months indicates a comprehensive development approach, allowing for proper planning, construction, and equipment installation to ensure the facility meets the company's super specialty hospital standards upon completion.
