The Rs 550-crore (Rs 5.5 billion) Apollo Hospitals group plans to enter into the genetic research and drugs segment.

Its first centre has already been set up in Hyderabad and the group plans to set up centres in New Delhi and Ahmedabad.

The group is also planning to open its hospitals in east European countries and South Africa in the next two years.

"After gathering experience in the hospital industry, we have now decided to enter the genetic research and drugs segment.

"An exclusive centre has been opened in Hyderabad and we will set up at least two new centres in New Delhi and Ahmedabad," Prathap C Reddy, chairman of the group, said.

Reddy also said that the drug segment of his company will not be confined to invention of alopathic drugs. "We will also try to make serious moves in a range of holistic drugs, including ayurveda," he said.

In the genetic research centre, AHG will mainly deal in genetic profiling which will help a person take preventive measures early in life.

The group, which has been managing hospitals in Colombo and Dubai, plans to expand its overseas operations.

It is considering opening hospitals in East European countries and South Africa.

"We plan to open a 250-bed hospital in Lagos of South Africa and may also open hospitals in the Czech Republic and Yemen in future. In the next phase, we will open hospitals in Saudi Arabia," said Reddy.

But most of these new initiatives will be on the lines of 'managing hospitals' rather than owning them.

"In another three years, we will extend the 'manage hospitals' concept to 75 per cent of our total hospitals business, from 30 per cent at present," added Reddy.

Under the 'managing hospital' concept, Apollo Hospitals will charge a project consultancy fee of 4 per cent of the project cost to the organisation from which it will be taking over the hospital for 'proper management'.

In exchange of an annual charge of 3-5 per cent of the total turnover of the hospital, Apollo Hospitals will allow it (the hospital being managed) to use the Apollo brand for 12 years, which will a be renewable deal.