Apollo hospitals

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

1. Health care industry 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. During 2008-2020 , the market is expected to record a CAGR of 16.5 per cent. The total industry size is expected to touch USD160 billion by 2017 and USD280 billion by 2020. 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. Government is emphasising on the e- Health initiatives such as Mother and Child Tracking System (MCTS) and Facilitation Centre (MCTFC )

2. 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.

3. 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.

4. Introduction Apollo Hospitals  is an Indian hospital chain based in Chennai, India. It was founded by Dr.Prathap C. Reddy in 1983 It has hospitals in India, Bangladesh, Kuwait and Qatar. Apollo 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. Apollo group has been successful on a very large scale to take quality healthcare across India. Today, 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. No of hospitals - 69

5. 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) Trading name – Apollo Hospitals Traded as - BSE: 508869 NSE: APOLLOHOSP Areas Served South Asia, Middle East. Revenue Revenue growth of 17.5% from 51,785 mn in FY 15 to 60,856 mn in FY 16

6. USP Leader in super – Specialty health care Tagline Touching Lives Vision Apollo's vision for the next phase of development is to 'Touch a Billion Lives'. Mission "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 “.

7. BUSINESS UNITS OF APOLLO Apollo Global Projects Consultancy Apollo Health and Lifestyle Limited Apollo Pharmacy Apollo Hospitals Education and Research Foundation. Apollo Telemedicine Networking Foundation. Apollo Insurance Company Limited. Apollo Wellness Plus. Apollo Reach Hospitals. Apollo Foundation

8. 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

9. SWOT Analysis Strengths Integrated healthcare company. Best technology & resources to deliver quality services.  Indian Healthcare market is one of the least penetrated markets thereby facilitating to existing players. Presence in all major cities. Largest private sector healthcare provider in India.  Weakness Since more than 300 Stand-alone pharmacies have been added during the year. most the pharmacies are in the incubation stage, this can depress the margins. Not present in semi urban areas. High costs compared to local hospitals. There is a very high attrition rate amongst nursing staff due to competition from the Western countries. High salaries and employee options are provided in the west, better training facilities

10. Opportunity Booming Medical Tourism and options . Under developed facilities and Lack of quality resources. There is a growing opportunity for the healthcare sector in India High costs of health in western countries. Apollo Hospitals is very well positioned in the market to capitalize on this growth opportunity. Threats There seems to be high competition prevailing amongst existing players in the industry. Cost of the medical equipment accounts for 40% to 45% of the total expenditure in the hospitals. New hospitals.   This type of business is capital intensive. Any change in technology will make the existing medical equipments obsolete

11. 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 Hospita ls 702.11 Indraprastha Medical Corporation Ltd 517.95 Opto Circuits 242.32 Lotus Eye Care Hospital Ltd 58.02

12. 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 .

13. 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

14. 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

15. Committed to preserving that which is Priceless Thank You