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Medical Tourism Market India

November 2014

Executive Summary
Market

Drivers &
Challenges

Government
Initiatives

SAMPLE

Medical tourism market in India is expected to grow at a CAGR of 20.1% from 2013 to 2018
International patients travelling to India is expected to rise significantly in coming years
Drivers:
High quality treatments at low costs
Expanding private healthcare infrastructure
Increasing demand for fertility treatments
Alternative medicine
Aesthetic Pleasure
Convenience to patients

Medical Visas
Fiscal Incentives

Challenges:
Regulatory issues
No provisions for follow up care
Unsuitable environment and problems
associated with travelling
Lack of international accreditations
Strong competition from other Asian
countries
PPP Model for Healthcare
Promotional Activities

Medical Tour Facilitators

Competition

Erco Travels Pvt.

Ltd.
Sahara India
Pariwar

Bonanza Medical
Tourism Pvt. Ltd.
Forerunners Healthcare
Consultants Pvt. Ltd.

Hospitals
Apollo Hospitals
Enterprise Ltd
Fortis Healthcare
(India) Ltd.

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

Max Healthcare
Institute Ltd.
Global Health Pvt. Ltd.
2

Macroeconomic Indicators
Introduction
Market Overview
Medical Tourism Destinations
Drivers & Challenges
Government Participation
Market Trends
Competitive Landscape
Hospitals
Medical Tour Facilitators

Strategic Recommendations
Appendix
MEDICAL TOURISM MARKET IN INDIA 2014.PPT

Economic Indicators (1/3)

SAMPLE

GDP at Factor Cost: Quarterly

INR tn
15

13

13.71
13.14
12.47

13.69
13.06
12.41

12

11.61

11.65

14

14.71
14.04
13.36

14.15
13.51

12.75

11

Q1

Q2
2010-11

2011-12

2012-13

Q3
2013-14

Q4

Inflation Rate: Monthly

%

2
1

0.85

1.26

0.83

0.42

0
-1
-2

-1.65
Jul 2013 - Aug 2013

Aug 2013 - Sep 2013

Sep 2013 - Oct 2013

Oct 2013 - Nov 2013

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

Nov 2013 - Dec 2013

4

Medical tourism is one of the fastest growing segment of

the tourism industry in India
Medical Tourism An Introduction

It involves traveling of a patient to a different country for the treatment of a disease or an ailment or a specific
condition at a lower cost with better quality of services than their home country

SAMPLE
Types of Medical Tourism

Outbound

Patients travel from home country

to receive medical care from other
countries

Inbound

Patients from foreign countries

travel for treatment to the home
country

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

Intrabound

Patients of the home country

travel to receive medical care from
a centre of excellence, which is
located in some other state within
the country

High inflow of foreign patients is causing the market for

medical tourism to grow strongly
Medical Tourism Market Overview (1/2)

Market Size & Growth

Medical Tourism is a booming business and is

drawing loads of overseas patients each year

INR bn

Most of the medical tourists in India are catered by

top private hospitals
Top hospitals in India usually provide an end-to-end service
that combines personalized services rendered in the hotel
industry to top-of-the-line quality healthcare.

Apart from the low cost of healthcare, the level of

services in the leading hospitals and medical centers
are at par with those being offered in the US and UK
An estimated 230,000 foreign patients travel to India
for healthcare procedures every year
Foreign patients are mainly from South East Asia and
Middle East who travel to India for medical treatments

x6

Y1%

s
r

x1

x2

x5
x4

x3

q
p
2013

2014e

2015e

2016e

2017e

2018e

Foreign Patients Treated in India

mn
f
X1%

b1

d
c

a1

b
a
20--

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

20--

Drivers & Challenges Summary

Challenges
Drivers

Regulatory issues

High quality treatments at low costs

No provisions for follow up care

Expanding Private Healthcare

Infrastructure

Unsuitable environment and problems

associated with travelling

Increasing demand for fertility

treatments

Lack of international accreditations

Alternative medicine

Strong competition from other Asian

countries

Aesthetic pleasure
Convenience to patients

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

Promotional Activities

Medical Visas

Government
Initiatives
PPP Model for Healthcare

Fiscal Incentives

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

Trends Summary

Alliances Among Various

Sectors

Government
Alliances

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

SAMPLE

Porters Five Forces Analysis

Impact
x
Threat of New Entrants

Impact
x

Bargaining Power of Suppliers

Impact
x

Competitive Rivalry

Impact
x

Bargaining Power of Buyers

Impact
x

Threat of Substitutes

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

10

SAMPLE

Competitive Benchmarking (2/5)

Key Ratios of Top 3 Companies Operational Basis (FY 2013) (1/3)

Operating Margin

Net Margin

40
30

a1
b1

20
10

a2

b2

a3

b3

Company A

Company B

Company C

Company A recorded operating margin of x1%, higher than that of Company B which recorded operating margin of
y2% but lower than that of Company C which recorded operating margin of z3%
Net margin for Company A , Company B and Company C are a1%, b2% and c3% respectively, wherein Company A has
the highest net margin among these three companies

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

11

Public: Domestic Company Company 1

(1/5)

SAMPLE

Company Information

Offices and Centres India

Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange

Mumbai

Head Office

Products and Services

Category

Products/Services

Key People
Name

Designation

Person 1

MD and Executive Director

Person 2

VC and VC of Share Transfer

Committee

Person 3

Director

Person 4

Director

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

12

Public: Domestic Company Company 1

(2/5)

SAMPLE
Key Ratios

Financial Snapshot
Total Income

z1

a3

a1

c
b

a4

a2

Particulars

Net Profit/Loss

z2

z3

z4

q
p

2010

2011

2012

2013

Financial Summary
The company earned a net profit of INR x1 mn in FY 2013, as compared to
net profit of INR x2 mn in FY 2012
The company reported total income of INR y1 mn in FY 2013, registering an
increase of y2% over FY 2012
The company earned an operating margin of z1% in FY 2013, an increase of
z2percentage points over FY 2012
The company reported debt to equity ratio of a1 in FY 2013, an increase of
a3% over FY 2012

2013

2012

2011

2010

Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets

Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)

Liquidity Ratios
Current Ratio
Cash Ratio

Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

Key Financial Performance Indicators

Indicators

y-o-y change
(2013-12)

Value (20/03/2014)

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

Decline

13

Public: Domestic Company Company 1

(3/5)

SAMPLE

Key Business Segments

Segment 1
C%

a1%

B%

b1%

Key Geographic Segments

Segment 2

b2%

Region 1

b3%

b4%

A%

Region 2

C%

x1%

B%

y1%

x2%

x3%

x4%

2010

2011

2012

2013

A%
2010

2011

2012

2013

Business Highlights
Description

News

Overview

The company has operations in Country A, Country B and Country C that offers treatment for acute and
chronic diseases in primary, secondary and tertiary care sectors

Specializes in 50 specialties comprising cardiac sciences, oncology, radiology and imaging,

Services

gastroenterology, neurosciences, orthopedics, critical care services and in minimally invasive surgeries
and transplantation

Operates retail pharmacy outlets all across the country

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

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Public: Domestic Company Company 1 SWOT Analysis

(5/5)

SAMPLE
S

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

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Private: Domestic Company Company 2

(1/5)

SAMPLE

Company Information

Offices and Centres India

Corporate Address

Tel No.
Fax No.
Website
Year of Incorporation

Mumbai

Head Office

Products and Services

Category

Products/Services

Key People
Ready Meals

Name

Designation

Person 1

Director

Person 2

Director

Person 3

Director

Person 4

Director

Instant Mixes

Others

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

16

Private: Domestic Company Company 2

(2/5)

SAMPLE

Shareholders of the Company

Name

Ownership Structure

No. of Shares held

Segment
Segment

Segment

19.0%

23.6%

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

57.4%

17

Private: Domestic Company Company 2

(3/5)

SAMPLE

Financial Snapshot
Total Income

Net Profit/Loss
a3

t
s

Key Ratios

a2

f
d

b1

b2

b3

b4

c
b

a
2008

2009

2010

y-o-y change
(2013-12)

2013

2012

2011

2010

Profitability Ratios
e

a1

r
q

a4

Particulars

2011

Financial Summary

Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets

Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)

The company earned a net profit of INR x1 mn in FY 2011, as

compared to net profit of INR x2 mn in FY 2010

Liquidity Ratios

The company reported total income of INR x3 mn in FY 2011,

registering an increase of x4% over FY 2010

Leverage Ratios

The company earned an operating margin of x5% in FY 2011,

an increase of x6 percentage points over FY 2010
The company reported debt to equity ratio of x7 in FY 2011, a
decrease of x8% over FY 2010

Current Ratio
Cash Ratio
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

Decline

18

Private: Domestic Company Company 2

(3/5)
Business Highlights
Description

SAMPLE
News

Company 2 has hospital network in Country A, Country B and Country C and is primarily headquartered in
Overview

Country D
Presently located in 10 cities in India having hospitals in Region 1, Region 2 and Region 3

Facilities

Has core specialties in heart care, brain and spine, bone and joint and minimal access surgery
Provides advanced medical diagnostics and treatment with personal care

Recognitions

Obtained NABH accreditation within one and a half years of beginning operation in India
Hospital A, Region 1, Hospital B, Region 2 has been NABH accredited

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

19

Private: Domestic Company Company 2 SWOT Analysis

(5/5)

SAMPLE
S

MEDICAL TOURISM MARKET IN INDIA 2014.PPT

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Thank you for the attention

Medical Tourism Market India report is part of Research on Indias Healthcare Industry
Series.
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MEDICAL TOURISM MARKET IN INDIA 2014.PPT

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