JMI Hospital Requisite Manufacturing has approved a further investment of Tk 115 million in its newly inaugurated subsidiary - JMI Specialized Hospital.
The leading medical device manufacturer and flagship company of JMI Group will purchase machinery and provide working capital to the hospital.
Company Secretary Md. Safiqur Rahaman said the board had approved the investment to support the hospital's expansion and meet related requirements.
The financing will be made from the company's own funds.
Earlier, JMI Hospital Requisite invested Tk 210 million in the subsidiary, Mr Rahaman said.
Following the disclosure, the company's share price rose 1.38 per cent to Tk 51.4 each on the Dhaka Stock Exchange on Monday.
Last month, Apollo Clinic - a subsidiary of India's Apollo Hospitals - launched operations in Bangladesh with its first branch opening in Dhaka under JMI Specialized Hospital.
Although the hospital had already started operations, the management decided to make further investment to ensure better services and state-of-the-art diagnostic facilities, said the company secretary.
"The clinic has ensured the use of state-of-the-art technology along with the deployment of the country's leading doctors, skilled nurses and management staff," he added.
JMI Hospital Requisite has joined hands with India's renowned hospital chain, Apollo, to ensure access to world-class treatment for patients in Bangladesh, the company said.
It holds a 65 per cent stake in the subsidiary, which has an authorised capital of Tk 500 million and a paid-up capital of Tk 200 million.
JMI Specialized Hospital offers specialist consultations, diagnostic and pharmacy services, as well as 100 in-patient beds, ICU, NICU, PICU, chemotherapy, dialysis and other advanced healthcare facilities.
At the inaugural ceremony, Md. Abdur Razzaq, founder and managing director of JMI Group, said the facility would provide world-class healthcare at fair prices, eliminating the need for patients to go abroad.
More than one million patients are expected to receive healthcare services annually from the hospital.
The hospital also plans to expand to other parts of the country with the help of the Apollo brand.
"We have a strong foothold in the healthcare sector, and JMI has already become a trusted brand in its long journey to ensure healthcare for the people," the founder said.
Apollo Health and Lifestyle's Head of Franchise Business Tarun Gulati said at the opening ceremony, "This is the first time that Apollo Clinic has started its journey in Bangladesh. We will gradually expand our presence together with JMI."
Apollo Hospitals operates 75 hospitals and 350 clinics worldwide, making it the largest hospital chain in South Asia.
Financial performance
Listed in March 2022, JMI Hospital Requisite raised Tk 750 million from the stock market under the book-building method for purchasing machinery, constructing buildings, land development and repaying bank loans.
The company's revenue fell 7 per cent year-on-year to Tk 1.29 billion, while profit declined by 10 per cent in the nine months through March this year.
Its annual profit also dropped 3 per cent to Tk 293 million in FY24. Despite the lower profit, the company paid a 10 per cent cash dividend for the year, up from 5 per cent in FY23.
JMI Hospital Requisite sells more than half of its products to two other companies of JMI Group - JMI Syringes & Medical Devices and Nipro JMI Marketing.
"Such dependency within the same group makes JMI Hospital Requisite reliant on the demand of these companies and opens up the possibility of exaggerating financial performance through related-party transactions," according to EBL Securities.
Founded in 2008 through a joint venture with South Korea, JMI Hospital Requisite produces IV cannulas, bulk needles, blood transfusion sets, and urine drainage bags. Its products are sold both domestically and internationally, according to its website.
JMI Group has more than 10 companies. Another concern - JMI Syringes & Medical Devices - is also listed on the stock exchanges.
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