Apollo Hospitals Enterprise’s planned demerger of its pharmacy and digital health businesses from its hospital operations is a strategic move to enhance shareholder value, Managing Director Suneeta Reddy said, dismissing rumours of family disagreements. The decision is part of a broader plan to allow each business segment to focus on its own growth.
Reddy clarified that separating Apollo 24/7, the group’s online pharmacy and digital healthcare platform, from the hospital chain was based on business and economic reasons, not personal or family matters. She emphasized her strong collaboration with her sister Shobana Kamineni, who will lead the new entity. “Decisions are made based on what is right for the business and shareholders, not from a family lens,” Reddy said.
The demerger reflects the different growth profiles and financial characteristics of the hospital business and the pharmacy-digital arm. Each operates in distinct markets with separate return expectations and workforce structures. Standalone entities will allow both businesses to pursue tailored strategies and unlock greater value for investors.
Apollo HealthCo, the holding company for the pharmacy and digital health operations, is expected to list separately by March 2027. Management expects Apollo HealthCo to grow around 20 percent annually over the next three years, compared with 18 percent for the hospital business.
Reddy also highlighted the company’s focus on preventive healthcare, expansion in major cities and Tier‑II towns, selective bed additions, asset-light growth models, and targeted acquisitions. These steps aim to meet India’s growing healthcare demand while maintaining operational efficiency.
On leadership succession, Reddy said the next generation is being trained across different business areas to ensure continuity and long-term growth. She added that the restructuring positions Apollo Hospitals for a clear, focused future, with each segment having distinct responsibilities and strategies, driven by business goals rather than internal dynamics.
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