NMC Healthcare, one of the first healthcare companies from Abu Dhabi to be listed on the Premium Segment of the London Stock Exchange (LSE), has completed part of a major logistic center at the Dubai Investment Park.
Project involves a total capital investment of $25 million and the company has charted out huge expansion plans with new state of the art hospitals and other healthcare facilities including a $200 million hospital in the Khalifa Medical City, which will be tendered in the third quarter of 2013.
The group has been investing on new projects and the capital investment value is estimated at $325 million.
Speaking to the media during the inauguration of the expanded Logistic Center, Binay Shetty, Chief Operating Officer, NMC Healthcare said it will add 20 per cent additional capacity to handle the increased volume of trading handled by NMC Trading, part of NMC Healthcare.
With more than 65,000 “stock keeping units”, or individual product lines, NMC Trading is a fully owned subsidiary of NMC Healthcare.
One of the largest distribution companies in the UAE, NMC Trading deals with fast moving consumer goods, food stuffs, pharmaceuticals, veterinary medicine and scientific equipment.
The new state of the art logistic center, located close to the Jebel Ali Free Zone, Emirates Road and other strategic locations is built on the principle of a warehouse within a warehouse, with special areas devoted for cold storages, bulk stores and retail picking store.
Binay Shetty, Chief Operating Officer, NMC Healthcare said the new logistic center close to the Emirates Road will help the group deliver medicines, healthcare products and other food products number 65000 to hundreds of customers –hospitals, pharmacies, supermarket chains, convenient stores in petrol stations and groceries.
As the logistic center is expanding further and the completion of the current facility required an investment of $7.9 million.
“NMC Healthcare is the first healthcare company from the Middle East region to be listed on the London Stock Exchange and it is a constituent of the FTSE 250 index.
The company is planning a number of capital projects for new healthcare facilities in Dubai and Abu Dhabi. These include a 250 bed multispecialty hospital in Dubai Investment Park, another 250 bed multispecialty hospital in the Khalifa Medical City ($200 million), Abu Dhabi, a women’s hospital, among others. In 2011, NMC Healthcare had revenue of $440 million and it employs 4500 people,” he said.
The group imports medicines and other goods from over 90 countries and it has a 500000 square feet ware house facility.
“Last year the company’s trategic team closely evaluated the evolving warehousing and distribution needs and signaled a logistic expansion to cater to the growing needs of the FMCG and food stuff divisions. The new expansion will help NMC Trading’s further expansion by expanding its warehousing and distribution capabilities,” said Binay Shetty, COO, NMC Healthcare and NMC Trading.
The development of Brightpoint Maternity Hospital, the first dedicated maternity facility of its kind in Abu Dhabi, is progressing and we expect to open the facility towards the end of the second half of the current financial year, in The Company expected it to complete in December 2012. However, the proposed hospital work is progressing and the facility will have 50 beds, with the capacity to expand up to 100 beds at a later stage. Total capital expenditure on the development and initial equipment within the facility will be up to US$70m.
Similarly, the Mussafah day patient medical centre work is progressing--it will serve as general practice day patient medical centre, with the ability to refer patients directly to principal Specialty Hospitals.
The Mussafah facility is connected to a new shopping centre and includes a pharmacy in its footprint. Total capital expenditure on the development and initial equipment within the facility will be up to US15 million.
The need for expanding NMC Tradings warehouse capacity has been brought about by a rapidly expanding range of new products across all divisions, which has increased by 12 per cent since December 2011.
With the commissioning of the New Logistic Center, NMC Trading will add another 20 per cent of additional inventory holding capacity and pave the way for additional products to be added to the distribution business.
BR Shetty, Managing Director and CEO of NMC Healthcare said he preferred Dubai Investment Park due to its strategic location.”
According to the details furnished to the London Stock Exchange, NMC was planning Brightpoint maternity hospital in Abu Dhabi by December 2012 with a total capital expenditure of $ 70 million.
In addition, it was planning to open the Mussafah day patient medical facility in Dec 2012 with total capital expenditure for project: US$15m.