KIMS to Set Up Super Speciality Hospital in Chennai With 300-Bed Expansion

Krishna Institute of Medical Sciences Limited (KIMS) has entered into a Leave and License Agreement with Andhra Mahila Sabha to take land on a long-term lease for setting up a super speciality hospital in Chennai. 

The land parcel measures ~1.168 acres, equivalent to 21.19 grounds, and is located at Dr. Durgabai Deshmukh Road, Raja Annamalai Puram, Chennai, Tamil Nadu. This move marks KIMS’ maiden entry into the Tamil Nadu healthcare market.

Existing Capacity and Utilisation Levels

As of September 30, 2025, KIMS, along with its subsidiaries, has an overall bed capacity of more than 8,800 beds across its network. During the first half of FY26, the company reported an average occupancy level of around 51 per cent of its total capacity. The current utilisation provides room for incremental growth while supporting expansion into new geographies.

Proposed Capacity Addition and Timeline

Under the proposed project, KIMS plans to add approximately 300 beds at the new Chennai facility. The company expects to complete the capacity addition within the next 36 months. The super speciality hospital is expected to cater to advanced medical needs and strengthen KIMS’ presence in southern India.

Investment and Funding Structure

The total investment required for the Chennai hospital project is estimated at around ₹300 crore. The expenditure will cover lease rentals, construction of the hospital building, and the purchase of medical equipment. The company plans to fund the project through a combination of bank borrowings and internal accruals, ensuring a balanced financing approach.

Strategic Rationale for Expansion

The proposed expansion represents a key strategic milestone for KIMS. Establishing a presence in Tamil Nadu allows the company to tap into a large and mature healthcare market. The new hospital is expected to enhance operational performance, diversify revenue streams, and generate sustainable long-term financial returns while strengthening the brand’s national footprint.

KIMS Share Price

On December 22, 2025, KIMS share price (NSE: KIMS) opened at ₹648.50, up from its previous close of ₹639.30. At 12:13 PM, the share price of KIMS was trading at ₹650.75, up by 1.79% on the NSE.

Also Read: Fortis Buys People Tree Hospital for ₹430 Crore!

Conclusion

KIMS’ Chennai super speciality hospital project reflects its focused growth strategy and commitment to expanding high-quality healthcare services. With a planned 300-bed addition and a ₹300 crore investment, the initiative is poised to support long-term growth and reinforce the company’s position as a leading healthcare provider in India.

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