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Founded by Dr. Devi Shetty in 2000, with over 30 years of medical experience, the group initially concentrated on cardiac and renal sciences. Over time, it expanded its scope to include cancer care, neurology, neurosurgery, orthopedics, and gastroenterology.
Indian healthcare provider Narayana Hrudayalaya expects to roll out its insurance service by the first quarter of FY25, seeking to disrupt the status quo, a top company official said.
“We hope that in Q1 of the coming financial year we will be able to go live with our first product,” said Sandhya J, group CFO at Narayana Health.
The company, also known as Narayana Health, received approval from the Insurance Regulatory and Development Authority of India to launch a health insurance business in India in January 2024.
While acknowledging that the hospital-insurer combination could be seen as a conflict of interest, Narayana said its intention is to change the status quo.
“We believe that we will be able to disrupt the way health services are consumed in the country,” said Sandhya. She emphasised the importance of health checkups that could reduce future hospitalisation expenses.
Most health insurance providers cover only illnesses that require hospitalisation. Only a few provide cover for outpatient expenses such as doctor consultations and pharmacy spending.
“We will have different products to cater to different segments of the population. Some of these will cover outpatient also,” Sandhya said. “Some products will focus on economical solutions targeting the missing middle (those who cannot afford insurance today), so we will cover across the spectrum.”
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Capex plans
The company's capital expenditure was about Rs 1,000 crore in FY24, a level it hopes to maintain for the next few years.
“We are expecting to spend in the same range - about Rs 1,000 crore - at least for the next few years because of the kind of expansion plan that we have targeted,” Sandhya said.
Most of the spending in FY24 went into expansion of the company’s centre in the Cayman Islands. The centre is nearing completion and will have more daycare facilities. The capex for the next financial year will focus on India, according to the management.
“Most of this expenditure will happen in India as Cayman expansion is complete,” Sandhya said.
Narayana Hrudayalaya was allotted 7.26 acres of land in Kolkata on a freehold basis to set up a healthcare facility by the state housing infrastructure corporation in February 2024. The capex will focus on this site and the flagship hospital in Bengaluru.
The company operates a chain of multispecialty, tertiary and primary healthcare facilities. Founded in 2000 by Devi Shetty, with over 30 years of medical experience, the group initially concentrated on cardiac and renal sciences and later expanded its scope to include cancer care, neurology, neurosurgery, orthopaedics, and gastroenterology.
In 2013, the organisation rebranded itself as Narayana Health to better represent its diversified presence.
With a significant presence in southern Karnataka and eastern India, it is gradually establishing itself in the western, central, and northern regions of the country.
In February 2024, ICRA rated the company as stable. The stable outlook on the long-term rating reflects ICRA’s expectations that Narayana Health will continue to benefit from its strong market position, investments in technology and ramp-up of operations at new centres.
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