This Power Point Presentation is about the health care industry its opportunities in growing market and the company profile and swot analysis of Apollo Hospitals
2. HEALTH CARE INDUSTRY
o Healthcare has become one of India's largest sectors both in terms of revenue and
employment. The industry is growing at a tremendous pace owing to its strengthening
coverage, services and increasing expenditure by public as well private players.
oDuring 2008-2020, the market is expected to record a CAGR of 16.5 per cent.
oThe total industry size is expected to touch USD160 billion by 2017 and USD280
billion by 2020.
o As per the Ministry of Health, development of 50 technologies has been targeted in the
FY16, for the treatment of diseases like Cancer and TB.
oGovernment is emphasising on the e- Health initiatives such as Mother and Child
Tracking System (MCTS) and Facilitation Centre (MCTFC)
3. The overall Indian healthcare market today is worth US$ 100 billion and is expected to
grow to US$ 280 billion by 2020, a compounded annual growth rate of 22%.
Healthcare delivery, which includes hospitals, nursing homes and diagnostics centers,
and pharmaceuticals, constituting 65 per cent of the overall market.
4. OPPORTUNITIES OF HEALTH CARE
INDUSTRY
Rural India - which accounts for over 70 per cent of the population, is set to emerge as a
potential demand source.
Medical tourism - The Indian medical tourism industry is expected to reach US$ 6 billion by
2018, with the number of people arriving in the country for medical treatment set to double over
the next four years.
Medical e – commerce - retail medicine sales market, which is expected to reach $55 billion in
2020 as more firms enter the segment with innovative business models, backed by global
investors.
Telemedicine - Through the use of technology consultation through mobile devices using video,
images, and conference calls can help rural patients access basic medical advice.
Electronic medical records (EMRS)- adoption of EMRs, healthcare data analytics are expected
to be game changers in the way ailments are diagnosed, monitored and treated.
Predictive healthcare analytics - A significant development in healthcare will be in the area of
predictive healthcare analytics wherein the vital components of a human body can be monitored
and any deviation that may result in a medical emergency, is detected in advance.
5. INTRODUCTION
oApollo Hospitals is an Indian hospital chain based in Chennai, India.
oIt was founded by Dr.Prathap C. Reddy in 1983
oIt has hospitals in India, Bangladesh, Kuwait and Qatar.
oApollo Hospitals is not just one of the country's premier healthcare providers but
also a pioneer in helping India become a centre-of-excellence in global
healthcare.
oApollo group has been successful on a very large scale to take quality healthcare
across India.
oToday, Apollo Hospitals are consistently ranked amongst the best hospitals
globally for advanced medical services and it has touched the lives of over 45
million patients, from 121 countries.
oNo of hospitals - 69
6. INSIGHTS -
Headquarters – Chennai ,Tamil Nadu.
Founder , Executive chairman – Prathap C Reddy
Market Capitalization - Rs . 17,696.02 (cr)
Workforce snapshot –
Total number of employees - 29,845
No. of contract employees – 5976
Permanent women employees – 10503
New hires in (2015-2016) – 12504 (men - 7420 ; women – 5084)
oTrading name – Apollo Hospitals
oTraded as - BSE: 508869
NSE: APOLLOHOSP
oAreas Served South Asia, Middle East.
oRevenue Revenue growth of 17.5% from 51,785 mn in FY 15 to 60,856
mn in FY 16
7. oUSP Leader in super – Specialty health care
oTagline Touching Lives
oVision Apollo's vision for the next phase of development is to 'Touch a
Billion Lives'.
oMission "Our mission is to bring healthcare of International standards within
the reach of every individual. We are committed to the achievement and maintenance of
excellence in education, research and healthcare for the benefit of humanity“.
8. BUSINESS UNITS OF APOLLO
oApollo Global Projects Consultancy
oApollo Health and Lifestyle Limited
oApollo Pharmacy
oApollo Hospitals Education and Research Foundation.
oApollo Telemedicine Networking Foundation.
oApollo Insurance Company Limited.
oApollo Wellness Plus.
oApollo Reach Hospitals.
oApollo Foundation
9. HOW IT IS DIFFERENT FROM ITS
COMPETITORS
Clinical excellence –
8 JCI accredited hospitals.
Outcomes benchmark with world class hospitals globally.
Strong long term relationship with doctors and medical profesionals.
Technological excellence –
continue to bring world class technology to the hospitals with latest equipments.
Care, compassion and commitment – follows value of TLC (tender loving care
towards patients. Commitment to our employees. Commitment to medical education
and research.
Cost benefit- commitment to world class care at costs significantly lower than
international benchmarks
10. SWOT ANALYSIS
Strengths
1. Integrated healthcare company.
2. Best technology & resources to
deliver quality services.
3. Indian Healthcare market is one
of the least penetrated markets
thereby facilitating to existing
players.
4. Presence in all major cities.
5. Largest private sector healthcare
provider in India.
Weakness
1. Since more than 300 Stand-alone
pharmacies have been added during
the year.
2. most the pharmacies are in the
incubation stage, this can depress
the margins.
3. Not present in semi urban areas.
4. High costs compared to local
hospitals.
5. There is a very high attrition rate
amongst nursing staff due to
competition from the Western
countries.
6. High salaries and employee options
are provided in the west, better
training facilities
11. Opportunity
1. Booming Medical Tourism and
options .
2. Under developed facilities and
Lack of quality resources.
3. There is a growing opportunity
for the healthcare sector in India
4. High costs of health in western
countries.
5. Apollo Hospitals is very well
positioned in the market to
capitalize on this growth
opportunity.
Threats
1. There seems to be high
competition prevailing amongst
existing players in the industry.
2. Cost of the medical equipment
accounts for 40% to 45% of the
total expenditure in the
hospitals.
3. New hospitals.
4. This type of business is capital
intensive.
5. Any change in technology will
make the existing medical
equipments obsolete
12. COMPETITORS
Market Capitalization in Rs (cr)
Fortis Healthcare 10116.58
Narayana Hrudayala Ltd 6730.62
Thyrocare Technologies Ltd 3742.11
Poly Medicure Ltd 2168.40
Healthcare Global Enterprises Ltd 2021.83
Kovai Medical Center and Hospitals 702.11
Indraprastha Medical Corporation Ltd 517.95
Opto Circuits 242.32
Lotus Eye Care Hospital Ltd 58.02
13. SCOPE OF APOLLO HOSPITALS
The scale and scope of Apollo extends from beginning to end of the care continuum.
Besides hospitals, the Apollo ecosystem includes primary clinics, specialty care clinics,
a health insurance company and the largest pharmacy chain in India, with more than
2,400 pharmacies. At present, Apollo hospitals has widened and their horizons have
extended.
Over the next two decades, they would grow into a sprawling tree covering
hospitals, clinics, pharmacies, telemedicine, project consultancy and operations
management, healthcare services, education and research. They are tieing up with
many hospitals in others states and planning to invest in new avenues relating to health
sector like tele medicine and health insurance and investing in projects in rural areas
and they are expecting net profit to grow by 25% each year.
14. FUTURE PLANS OF APOLLO
HOSPITALS
Cluster strategy for expansion with Greenfield projects in attractive newer markets -
•4,467 operational beds in Tier I cities. Plan to add 980 beds by FY19.
• Planned expansion in metros like Mumbai & large cities like Pune etcwith no existing
presence–reaching to wider urban population
Grow laterally in high potential Tier II Cities –
• 2,257 operational beds in Tier II cities. Plan to add65beds by FY17.
Increase Presence in Indian Healthcare Retail Space
•Increase in touch points with the patient to strengthen Apollo’s ability to be the premier
healthcare provider for the community.
Calibrated expansion in Standalone Pharmacies :-
•Standalone pharmacy business - calibrated expansion plans with focus on same store
growth, increased private label sales and margin improvement –
•Focus on increasing private label sales-Target20% of Revenues
Plan to expand overall EBIDTA margin to 6%over the next 3years
15. Focus on Centers of Excellence with one or two anchor specialties in each
market. Oncology–a growing area across
Strong Doctor engagement Model and use of technology –guided by our
Clinical excellence focus.
Optimize Asset Utilization in flagship facilities & locations
•Garner higher market share in select acute and tertiary care services
•Specific plan to further penetrate deeper into Cardiology, Neurosciences &
Oncology.
Cost Efficiencies and Focus on Improving Key Operating Metrics