Apollo Hospitals' Pharmacy-Digital Demerger Is Strategic, Not Linked to Family Dispute, MD Clarifies
Mumbai: Apollo Hospitals Enterprise Ltd has reiterated that its proposed demerger of the pharmacy and digital health businesses from the core hospital operations is a well-considered strategic business decision aimed at strengthening focus and unlocking shareholder value, and has no connection with any family rift, Managing Director Suneeta Reddy has stated.
Explaining the rationale behind the move, Reddy told ScanX that the decision was taken at the board level purely on commercial and operational considerations. The restructuring is intended to allow the hospital business and the fast-growing pharmacy and digital health verticals to function independently, enabling each segment to pursue growth strategies best suited to their business models while improving transparency for investors.
As part of the proposed scheme, Apollo plans to separate its omnichannel pharmacy operations and digital health platform into a distinct entity. The move is expected to help investors directly participate in the growth of the pharmacy and healthcare technology businesses, while the hospital arm continues to focus on expanding clinical services and healthcare infrastructure.
Responding to market speculation, Reddy categorically ruled out any differences within the promoter family, stating that there has been no change in promoter relationships or management control. She emphasised that the restructuring reflects Apollo’s long-term vision to sharpen business focus, improve capital allocation, and create sustainable value for shareholders.
The company has already secured key regulatory clearances for the demerger, including no-objection observations from stock exchanges and approval from the Competition Commission of India (CCI). These approvals form part of the composite scheme of arrangement required to complete the restructuring process.
ScanX reports that Suneeta Reddy stated that the demerger is a strategic step driven by shareholder interest and future growth considerations, firmly dismissing speculation of internal family discord.
Apollo Hospitals continues to position the restructuring as a forward-looking move aligned with evolving healthcare and consumer trends, as the group strengthens both its hospital network and its digital and pharmacy presence.
