APOLLO HOSPITALS

INDUSTRY ANALYSIS

Market Breakup by Revenue (2012)

HEALTH-A0E SE/ME:TS
Hospitals Medical I!sura!ce Pharmaceutic al "ia#!ostic s

Hea#t"&are $e&t'r !r'(t" tren) *+ bn

() )

9% 13%

3% 4%

Hospitals Pharmaceutical Medical E uipme!t

,A-R% 1./ 4*1* *117 *91* '+14 7+1'

1*+1(

1) ) )

Medical E uipme!ts a!d Suppliers

71%

Medical I!sura!ce "ia#!ostics

( )) +

() )9

( )1 )

Key H !"# !"t$ % Pri$ate sectors share i! health care deli$er% to i!crease &rom ''% i! ())* to +1% ,% ()1* Per -apita healthcare e.pe!diture i!creased at -A/0 1)13% Mar2et 3alue 4()115 6 7S"'+14,!8 Mar2et 3alue 4()17E5 6 7S"1*+1(,! at -A/0 1*% Emer#e!ce o& Medical Tourism Shi&t &rom commu!ica,le to li&est%le diseases E.pa!sio! to tier ( a!d tier 3 cities Emer#e!ce o& telemedici!e 43alued at

/0O9I:/ "EMA:" 0isi!# i!come a!d a&&orda,ilit% /ro<i!# elderl% populatio! 0ise i! medical tourism =etter a<are!ess <ell!ess> pre$e!ti$e

POLI-; S7PPO0T E!coura#i!# policies o& ?"I a!d the pri$ate sector 0eductio! i! customs dut% a!d other ta.es o! li&e sa$i!# e uipme!ts :0HM allocated 7S" 1) ,illio!

I:-0EASI:/ I:3ESTME:TS 0isi!# ?"I a!d pri$ate sector i!$estme!ts Lucrati$e M@A opportu!ities ?orei#! pla%ers setti!# 0@" ce!ters a!d hospitals

( )1 1

( )1 ( E

( )1 7 E

I!$iti!#

0esulti!# I!

T'ta# In&'2e ( n ,r3 Rupee$)

,'2pany
?ortis Healthcare Ltd Apollo Hospitals E!terprise Ltd Ma!ipal #roup o& hospitals /lo,al Hospitals Ma. Healthcare

N'3 '4 be)$

1())) +(7' 49)) (173 1973

1'rt $ Hea#t"&are Lt) Started i! 19+3 /ro<th ,% di$ersi&icatio! a!d ac uisitio!s :et<or2 o& (9 hospitals> i!cludi!# 1( satellite Pla!s to add 4>3)) !e< ,eds i! !e.t &our %ears

Ap'##' H'$p ta#$ Started i! 19+3 /ro<th ,% E!ha!ced i!$estme!t> C3 a!d hospital e.pa!sio! Leader i! super specialit% health care Predomi!a!tl% i! Souther! I!dia 0o,otic sur#er% capa,ilities i! 4D ?;13 Pla!s to i!$est E7S"4)) millio! to add a!other (>'+* ,eds ,% ()1* -#'ba# H'$p ta#$ Started i! 199+ /ro<th ,% hospital !et<or2 e.pa!sio! ?irst hospital to per&orm radial procedures @ i!tra$ascular sur#er% Leadi!# multiBor#a! tra!spla!t ce!tre Ac uisitio! o& Tamil!ad Hospital i! ())7 &or tra!s&ormi!# it to /lo,al Health -it% :A=H accreditatio! Man pa# !r'up '4 "'$p ta#$ Started i! 19*3 Ma!a#es 11 hospitals> i!cludi!# + teachi!# hospitals MultiBstream &acilities co$eri!# the e!tire spectrum &rom seco!dar% to superBspecialt% care

Apollo Li!ear 4Apollo5 Opto circuits Li!ear 4Opto circuits5 ?ortis healthcare E.po!e!tial 4?ortis healthcare5 Pol% Medicure Li!ear 4Pol% Medicure5

Ma0 Hea#t"&are Started i! ())) Or#a!ic #ro<th throu#h e.pa!sio! Predomi!a!tl% i! :orth I!dia :A=H certi&ied> :A=L accredited> ISO 9))1A())) @ ISO 14))1A ())4 certi&ied ?;1( 7S"17( millio! tur!o$er

,'2pany
?ortis Healthcare Ltd Apollo Hospitals E!terprise Ltd Ma!ipal #roup o& hospitals /lo,al Hospitals Ma. Healthcare
' )) ) * )) ) 4 )) ) 3 )) ) ( )) ) 1 )) ) )

N'3 '4 be)$

1())) +(7' 49)) (173 1973

1'rt $ Hea#t"&are Lt) Started i! 19+3 /ro<th ,% di$ersi&icatio! a!d ac uisitio!s :et<or2 o& (9 hospitals> i!cludi!# 1( satellite Pla!s to add 4>3)) !e< ,eds i! !e.t &our %ears
39 + 73

Ap'##' H'$p ta#$ Started i! 19+3 Total I!come 4i! -r1 /ro<th ,% E!ha!ced i!$estme!t> C3 a!d hospital e.pa!sio! Leader i! super specialit% health care Predomi!a!tl% i! Souther! I!dia 0o,otic sur#er% capa,ilities i! 4D ?;13 Pla!s to i!$est E7S"4)) millio! to add a!other (>'+* ,eds ,% ()1* -#'ba# H'$p ta#$ Started i! 199+ /ro<th ,% hospital !et<or2 e.pa!sio! ?irst hospital to per&orm radial procedures @ i!tra$ascular sur#er% Leadi!# multiBor#a! tra!spla!t ce!tre Ac uisitio! o& Tamil!ad Hospital i! ())7 &or tra!s&ormi!# it to /lo,al Health -it% :A=H accreditatio!
4) (3 + 4 )' )3

0upees5

4) 9' 9

413 3 4

Ma0 Hea#t"&are Man pa# !r'up '4 "'$p ta#$ Started i! ())) Started i! 19*3 Apollo Li!ear 4Apollo5 Or#a!ic #ro<th throu#h e.pa!sio! Ma!a#es 11 hospitals> i!cludi!# + Predomi!a!tl% i! :orth I!dia Li!ear 4Opto circuits5 ?ortis healthcare teachi!# hospitals :A=H certi&ied> :A=L accredited>Pol% Medicure Li!ear 4Pol% Medicure5 MultiBstream &acilities co$eri!# the ISO 9))1A())) @ ISO 14))1A ())4 e!tire spectrum &rom seco!dar% to certi&ied superBspecialt% care ?;1( 7S"17( millio! tur!o$er

Opto circuits E.po!e!tial 4?ortis healthcare5

1INAN,IAL 56R17RMAN,6

4i! -rore 0upees5 3+)*11+

Operating Profit margin % Net profit margin % ROI % Return on net worth %

4 )) ) 3 *) ) 3 )) ) ( *) ) ( )) ) 1 *) ) 1 )) )

-A/0A (11*(%

*4(1)( 1)41( (+1*+

3 +) 47 3 +4 1(

* )) )

37+1)+ (931( -A/0A ('1(1%

3+ 7 77 3 91 4( 39 * )+ 3 9+ 73 4 )( 3+ 4) ' )3 4 )9 '9 41 3 34

0eported :et Pro&it

Li!ear 40eported :et Pro&it5

Operati!# Pro&it

Li!ear 4Operati!# Pro&it5

9194% 7171% 3(17(% 1)17*%

1)119% '1'*% (71'1% +197%

1)141% '1'*% (71++% 91+(%

9119% '133% ('1**% +143%

+1((% *1(*% 1*1+7% '1(3%

+194% '1*+% 1(1'(% '1*9%

9174% 911)% 341)4% 11193%

1*191% *1*+% 171)(% '1'*%

1+147% 419+% 3(1'4% 91++%

191((% *1(7% 34179% 111*9%

START- 1ST
APOLLO HOSPITAL Chennai

60pan$ 'n t' Hy)eraba)

TIM6LIN6
Ap'##' In)rapra$t"a 60pan$ 'n t' SL; Duba ;Sau) ; -"ana

198

1988

199!

"###

"###
Te$eme%i&in e Starte% T'p .0 "'$p ta#$ !#'ba##y* B,-

SA,H < 5'pu#ar ,SR

"##"

Hea$th Cit(A)ia

"##' "##'
Partnere% with *uni&h In)uran&e R,-,A,C, H

"##8 "##8
"+th Ho)pita$

"##8
Te$e me%i&ine re&ognition

Ro.oti&) )urger( / Li0er &$ini&

"##9

890 ) : 1$t &" #)ren "'$p ta#

"#12

"#1# "#11
1a( Surger(

2012

A,R7SS TH6 H6ALTH S56,TRUM

Hospitals

=ALU6 ,HAIN ANALYSIS

Pa%ers

I:TE/0ATE" "ELI3E0; :ET9O0F

?iscal I!termediarie s

Pro$ider s

Purchase rs

Producer s

-R7>TH STRAT6-Y
S56,IALITY ,LINI, B "ial%sis> Su#ar -li!ics> "e!tal -li!ics> -radle > "a% Sur#er% B ?ull% de$eloped a!d ma!a#ed B Prese!tl% more tha! 1)) cli!ics 5HARMA,6UTI,AL B Prese!tl% 1*))G stores B Sta!dalo!e as <ell as stores <ithi! hospitals B Lar#est or#a!iHed pharmac% retail chai! 41))) cr1 0e$e!ue5 - Outpatie!t stre!#th tapped - Trai!ed !urses -e!traliHed data,ase a!d i!$e!tor% ma!a#eme!t A57LL7 H7S5ITALS B Esta,lished mai!l% i! Tier 1 cities B ?ocused o! -O:E-T 4-ardiolo#%> Orthopedics> :euroscie!ces> Emer#e!c%> -a!cer> Tra!spla!tatio!5 B -arried ,% i!!o$atio! B Medical Tourism B Prese!tl% i! 1) cities A57LL7 ,LINI,S B ?ra!chise ,ased model up to ()1) B :o< started o<!i!# as <ell B All cli!ics e uipped <ith pharmac% B Outpatie!t stre!#th tapped

A -

A (

* '

APOLLO REACH HOSPITAL & SPECIALITY HOSPITALS (Districts HQ)

A , 3

A -

CL3ST-R STRAT-4 5 6OR -7PANSI ON

R6A,H H7S5ITALS B Prese!tl% ' reach hospitals> pla! &or 3 more B To ,e esta,lished i! Tier (@3 cities 4to ,e called as district HD5 B 1))B1*) ,ed hospital B Less capital i!te!si$e B -o!!ect <ith Apollo -li!ics a!d other medical &acilities

A -

Apollo Clinics

A57LL7 H7S5ITALS (T er 1)
*

or!al Clinics

ANALY?IN- STRAT6-I, INITIATI=6S

)oot*alls

T0A:S?O0MATIO: 3') 0O-FET 14 0EA-H I:ITIATI3E -L7STE0 EIPA:SIO:

200 A 1117 201 0 1*1( 201 1 1717 201 2 ()11

R"%"n#" s R"t#rns Cost

Con%"rsions Cas" (i& Pricin+ Cons#!ption p"r Pati"nt Cost o* (at"rial ,tili-ation and T.ro#+.p#t La/or Prod#cti%it$ Pati"nt Satis*action
4))) 3*)) 3))) (*)) ())) 1*)) 1))) *))

R"t#rn on Capital E!plo$" d

Year$ 0O-E %

200@ 1(1(

Pati"nt E&p"ri"n c" Capital E!plo$" d '#sin"ss (od"l

=a#ue ,urve

Clinical Q#alit$
R6=6NU6

Hospital )or!at Ti!in+ o* In%"st!"nts D"si+n to Cost

Cap"&

Strat"+ic So#rcin+ L"an E&"c#tion

)
9) 91 1) 1+ 9 13 19 1

N' '4 62p#'yee$

1* 9( 7

19 )+ +

(' '* 9

3) '4 )

3( 99 1

3* 34 +