ET Intelligence Group: The 'value unlocking' bug may well have bitten the management of Apollo Hospitals Enterprises (AHEL). The company's board has set up a committee to prepare the roadmap for restructuring of existing businesses possibly into separate legal entities.This announcement comes close on the heels of Fortis announcing the hiving off of its diagnostic business into its existing listed subsidiary.AHEL has compelling reasons to take the Fortis route. For instance, its most profitable hospital business is facing pricing pressure in urban markets and has long gestation period when it comes to new hospitals.Its fastest-growing small business of retail health is not yet yielding returns. Its debt on books has been steadily rising — bulging its interest cost and impacting the profitability. Its total debt stood at Rs 2,860.8 crore at the end of the first quarter.The decision to unlock seems to be a timely one.

Source: Economic Times September 05, 2016 03:45 UTC