CUSTOMER PREFERENCE AND SATISFACTION LEVEL

TOWARDS THEIR EXPETATION WITH SPECIAL REFERENCE

TO

APOLLO HOSPITALS

PREPARED BY: UNDER THE GUIDLINES:

TANISHQ GARG Mr. SHAKTI SHARMA

SUMBITTED TOWARDS FULLFILLMENT

OF

BBA DEGREE

TO BVUSDE

ACADAMIC SESSION

2018 TO 2021

BHARATI VIDYAPEETH DEEMED UNIVERSITY PUNE (INDIA)

School of Distance Education (SDE)

Academic Study Centre: BVIMR, New Delhi

(University established under 3 of the UGC act, 1956)
 Student Declaration

TANISHQ GARG student of B.B.A (BACHELOR OF BUSINESS ADMINISTRATION)

SEMESTER – IV would like to declare that the project report entitled ‘CUSTOMER
PREFERENCE AND SATISFACTION LEVEL TOWARDS THEIR EXPETATION WITH
SPECIAL REFERENCE’ TO “APOLLO HOSPITALS”. Submitted to Bharati Vidyapeeth
University Pune (India), School of Distance Education (SDE), Academic Study Centre: BVIMR
New Delhi, in partial fulfilment of the requirement for the award of the degree.

It is an original work carried out by me under the guidance of Mr. SHAKTI SHARMA. All
respected guides, faculty members and sources have been properly acknowledged and the report
contains no plagiarism.

To the best of my knowledge and belief the matter embodied in this project is a genuine work
done by me and it has been neither submitted for assessment to the University nor to any other
University for the fulfilment of the requirement of the course of study.

Signature of Student

TANISHQ GARG
 ACKNOWLEDGEMENT

Successful completion of the Project and culmination of my efforts reminds me for

indebtedness towards my project guide Mr. SHAKTI SHARMA, for her invaluable
guidance and encouragement throughout the work. His rich experience and ever-lasting
patience saw me through many unforeseen hurdles. The pleasure would not have been mine
without the firm support extended to me by him. His lively appreciation blended with
constructive criticism, constant queries and suggestions for the foundation on which it is
based.

Last but not the least, I also take this opportunity who has directly or indirectly contributed
through their valuable suggestion, and presence during completion of this project.

SIGNATURE OF STUDENT

TANISHQ GARG
 PREFACE

THE organizational climate or work environment is key to corporate success since it

determines the attitudes and behaviour of workers. Therefore, corporations and institutions
need to count on periodic measurement mechanisms of their organizational climate.

This study included developing a questionnaire that contained the major factors influencing
both the main parameters i.e. organizational climate and employees’ satisfaction. I studied
the factors which in general can affect any organization.

Marketing should not be looked upon in a vacuum or in isolation. It is an essence taking a

view of the whole business organization and its ultimate objective concern for marketing
must penetrate all areas of the enterprise. Market surveys today’s competitive world are a
must for every organization.

The aim of this project was to comparatively study APOLLO HOPITALS Pvt. Ltd.
operators and other operators and tries to reveal future prospect of APOLLO
HOSPITALS. Conclusion and there by recommendations have been arrive at by proper and
justified interpretation of the result derived from the above said analytical tools and
techniques.
 CONTENTS

Chapter :1 Introduction to Company 1 -- 25

1.1 Nature of Business

1.2 Type & Ownership Pattern

1.3 Organisational Structure

1.4 Production Lay Out

1.5 Organisational Policies

Chapter :2 Industrial Analysis 26 -- 39

2.1 Industry Overview – (Growth rate

of Industry, Contribution to GDP)

2.2 Current Issues

2.3 Key Competitors

2.4 Environmental Scanning –Political

environment Economic environment,
Socio-Cultural Environment,
technological environment,
environmental issues (Green environment)
and Legal environment.
2.5 Porters five forces model of competition

Chapter 3: Marketing Strategies 40 -- 48

3.1 Products of Company
3.2 7 Ps (Product: Price, Place & Promotion)
3.3 STP (Segmentation,
Targeting and Positioning)
3.4 Distribution Channels
 3.5 Promotion Strategies

Chapter 4: Financial Analysis 49 -- 58

4.1 Sources of Finance
4.2 Ratio Analysis
4.3 Net Profit/ Balance sheet -Analyse

Chapter 5: Key Learning’s from the Company 59 -- 68

and Recommendations
5.1 Performance Analysis of the Company
5.2 Reasons for the expansion/contraction
/diversification of Company
5.3 Comment on Organizational Leadership
5.4 Market share/growth rate of Company
5.5 SWOT Analysis of the Company

Chapter 6: Findings 69 --73

Chapter 7: Conclusions and Suggestions 74

❖ Bibliography 75
 CHAPTER - 1

INTRODUCTION TO COMPANY

Apollo Hospitals Enterprise Limited is an Indian hospital chain based in Chennai, India. It was
founded by Dr Prathap C. Reddy in 1983 and has hospitals in India, Bangladesh, Kuwait and
Qatar. Several of the group's hospitals have been among the first in India to receive international
healthcare accreditation by America-based Joint Commission International (JCI). The Sri Lankan
branch of Apollo Hospitals was shut down in mid-2014 and the building was branded as Lanka
Hospitals

Trading name Apollo Hospitals—2EZ4'3

1. 7L90O;

Type Public

BSE: 508869
Traded as
NSE: APOLLOHOSP

Industry Healthcare

1
Founded 1983

Founder Prathap C. Reddy

Headquarters Chennai, Tamil Nadu, India

Areas served South Asia, Middle East

Prathap C. Reddy (Chairman)

Key people
Preetha Reddy (MD)

Products Hospitals, Pharmacy, Diagnostic Centre

Revenue ₹6,058 crore (US$900 million) (2016)

Profit ₹331 crore (US$49 million) (2016)

Number of employees 43,557 (2016)

Website www.apollohospitals.com

1.1 NATURE OF BUSINESS

India's largest branded pharmacy retail network, Apollo Pharmacy, is looking at large format
pharmacy outlets, which would have an area of 1,500-2,000 sq. ft., catering to health, wellness
and beauty solutions, apart from medicines.

2
The large format pharmacy retail model would cater to the wellness market, along with the
therapeutic medicine supplies to the patient population. It would look at offering a full range of
pharma products, with more space for fast moving consumer goods products, including skin care,
cosmetics, beauty and other healthcare related products.

The company would look at a pilot project, an outlet of 2,000 sq. ft space in one of the major
cities, probably in South India. Further expansion into the segment would depend on the
performance of the pilot project. Experts are curiously looking at this model, given the size of the
company’s plans and the risks involved.

Apollo Pharmacy, which is a division of healthcare major Apollo Hospitals Enterprise Ltd
(AHEL), is present both as attached to the hospitals and clinics by AHEL and also as standalone
standard format stores across the country. With 1,364 outlets across the country as on March 31,
the company is also adding 600-700 new outlets to reach a total of 2,000 outlets in the next three
to four years, informed K Padmanabhan, group president, Apollo Hospitals, in a recent
conference call with analysts.

The balance sheet of the pharmacy business, which was in positive growth before the aggressive
expansion plans started in 2007, slipped into the red two to three years, post-FY2007. After a
recent review of its growth strategy, it started closing loss-making stores and opening new stores
in the potential areas. It has formats including shop in shop and high street shops apart from the
hospital pharmacies, according to a study by Northbridge Capital in 2011.

Organised retail pharmacy

The Indian pharmaceutical market posted sales of Rs 5,369 crore ($1.01 billion) in March 2012,
according to the market research firm of All India Organization of Chemists and Druggists
(AIOCD). The pharma retail market in India has around 600,000 to 700,000 outlets across the
country. Of this, 95 per cent are in the unorganised sector, in the mom and pop model, as of 2011.

“Of the 600,000 retail outlets, 7,000-8,000 would be the total outlets from all the organised retail
players. There is plenty of opportunity for the organised players to grow,” said Amit Mookim,
head, healthcare, with consulting firm, KPMG.

3
The challenges

In large format stores, finding a suitable location with high footfall at a competitive price would
be the major challenge, especially for pharmacies which has fixed margin on medicines and low
margin on FMCGs, says Mookim.

1.2 TYPE AND OWNERSHIP PATTERN

Shareholding Pattern

The investors section is designed for existing and potential investors, as well as others who are
interested in learning more about our company. In addition to quarterly and annual reports, this
section houses financial statements and recent news. Be sure to check back often for new and
updated information on the Apollo Hospitals Group.

CATEGORY OF NO. OF TOTAL TOTAL NO. TOTAL SHARES

SHAREHOLDE SHARE NO. OF SHAREHOLDIN PLEDGED
R - OF SHARES G AS A % OF OR
HOLDE SHARES HELD IN TOTAL NO. OF OTHERWISE
RS DEMATERIA SHARES ENCUMBER
LIZED ED
FORM AS A % OF
(A+B) NUMBER OF
SHARES
AS A % OF

4
 (A+B+C) AS A % OF
TOTAL
NO. OF
SHARES

(A) Shareholding of Promoter and Promoter Group

(1) Indian

Individuals / 20 20,555,635 20,555,635 14.89 14.89 10,327,35 50.24

Hindu 0
Undivided
Family

Central - - - - - -
Government /
State
Government(s)

Bodies - - - - - -
Corporate

Financial - - - - - -
Institutions /
Banks

Any Others 3 27,237,924 27,237,924 19.73 19.73 21,804,36 80.05

(Specify) 4

Sub Total 23 47,793,559 47,793,559 34.62 34.62 32,131,71 67.23

5
 4

(2) Foreign

Individuals - - - - - -
(Non-Residents
Individuals /
Foreign
Individuals)

Bodies - - - - - -
Corporate

Institutions - - - - - -

Qualified - - - - - -
Foreign Investor

Any Others - - - - - -
(Specify)

Sub Total - - - - - -

Total 23 47,793,559 47,793,559 34.62 34.62 32,131,71 67.23

shareholding of 4
Promoter and
Promoter
Group (A)

(B) Public Shareholding

6
 (1) Institutions

Mutual Funds / 32 1,290,998 1,290,998 0.94 0.94 - -

UTI

Financial 15 100,936 97,090 0.07 0.07 - -

Institutions /
Banks

Central 1 323,708 323,708 0.23 0.23 - -

Government /
State
Government(s)

Venture Capital - - - - - -
Funds

Insurance 9 1,974,268 1,974,268 1.43 1.43 - -

Companies

Foreign - - - - - -
Institutional
Investors

Foreign Venture - - - - - -
Capital Investors

Qualified 431 60,091,030 60,091,030 43.53 43.53 - -

Foreign Investor

7
 Nominated - - - - - -
investors (as def.
in Ch. XA of
SEBI (ICDR)
Regulations)

Market Makers - - - - - -

Any Others 1 1,441 1,441 - - - -

(Specify)

Sub Total 489 63,782,381 63,778,535 46.21 46.21 - -

(2) Non-
Institutions

Bodies - - - - - -
Corporate

Individuals - - - - - -

Individual 0 - - - - - -
shareholders
holding nominal
share capital up
to Rs. 1 lakh

Individual 37,4 7,385,394 5,314,172 5.35 5.35 - -

shareholders 32
holding nominal

8
share capital in
excess of Rs. 1
lakh

Qualified - - - - - -
Foreign Investor

Any Others 2,78 19,070,629 19,077,265 13.82 13.82 - -

(Specify) 5

Sub Total 40,2 26,456,023 24,391,437 19.17 19.17 - -

17

Total Public 40,7 90,238,404 88,169,972 65.38 65.38 - -

shareholding 06
(B)

Total (A)+(B) 40,7 138,031,96 135,963,531 100.00 100.00 32,131,71 67.23

29 3 4

(C) Shares held - - - - - - -

by Custodians
and against
which
Depository
Receipts have
been issued-m

(1) - - - - - -

9
 (2) - - - - - -

Sub Total - - - - - -

Total 40,7 138,031,96 135,963,531 100.00 100.00 32,131,71 23.28

(A)+(B)+(C) 29 3 4

10
 Shareholding belonging to the category: "Promoter and Promoter Group"

No. Name of the Shareholder Total Shares held Shares pledged or otherwise
encumbered

Number As a % of Number % of Total As a % of

grand shares grand total
total held (A) + (B) +
(A) + (B) (C)
+ (C)

1 PCR Investments Ltd 27,223,12 0 21,804,3 80.1 -

4 64

2 Prathap C Reddy 5,445,464 0 - - -

3 Sucharitha P Reddy 569,800 0 - - -

4 Obul Reddy Investments 11,200 0 - - -

Pvt Ltd

5 Indian Hospitals 3,600 0 - - -

Corporation Ltd

6 Preetha Reddy 2,193,915 0 1,935,00 88.2 -

0

7 Suneeta Reddy 3,381,695 0 2,150,00 63.58 -

0

8 Shobana Kamineni 2,239,952 0 2,235,00 99.78 -

0

11
9 Sangita Reddy 2,432,508 0 2,430,00 99.9 -
0

10 Karthik Anand 330,600 0 - - -

11 Harshad Reddy 320,200 0 - - -

12 Sindoori Reddy 517,600 0 - - -

13 Aditya Reddy 210,200 0 - - -

14 Upasana Kamineni 217,276 0 - - -

15 Puansh Kamineni 212,200 0 - - -

16 Anuspala Kamineni 259,174 0 - - -

17 Konda Anindith Reddy 230,200 0 - - -

18 Konda Vishwajit Reddy 222,300 0 - - -

19 Konda Viraj Madhav 168,224 0 - - -

Reddy

20 Vijay Kumar Reddy 8,957 0 - - -

21 Dwaraknath Reddy 18,000 0 - - -

22 Anil Kamineni 20 0 - - -

23 K Vishweshwar Reddy 1,577,350 0 1,577,35 100 -

0

12
1.3 ORGANIZATIONAL STRUCTURE

Inventus organisers enables anybody to create and publish organizational charts of their
company or team structure within minutes. With our org charting software there are no limits
to your creativity for the design, layout, or content of your org chart. Whether kept simple for
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company, Inventus organisers makes it happen. Thanks to direct linkage to leading human
resource management systems such as SAP ® ERP HCM, Success Factors™, PeopleSoft®,
Workday®, Oracle HR®, the created org charts will always be up to date. Finally, various
display options make the organizational charts available to individual target groups. Custom
organizational charts for any requirement. Inventus organisers enables you to meet nearly any
requirement like dotted line, HR Analytics, functional relations or a design based on your
Corporate Identity. Next to the content and design of your organizational charts also the user
interface can be adjusted according to your needs by adding e.g. a hierarchy tree, detail view,
object list or freely editable elements. Extensive print-, search-, and export functions complete
the package.

1.4 PRODUCTION AND SERVICE LAYOUT

Hospitals in India
Apollo presence encompasses over 10,000 beds across 70 hospitals, 2556 pharmacies, over
172 primary care & diagnostic clinics, 148 telemedicine units across 13 countries, health
insurance services, global projects consultancy, 15 academic institutions and a Research
Foundation with a focus on global clinical trials, epidemiological studies, stem-cell and
genetic research.

▪ Ahmedabad
A multi-specialty quaternary care hospital, it is indeed one of the cornerstones of the
healthcare infrastructure in Gujarat, setting new benchmarks in quality standards.

13
▪ Bangalore
This hospital is well known for its state-of-the-art technology and outstanding expertise in all
medical specialties, making it a powerhouse of healthcare in Bangalore.

▪ Chennai
The flagship hospital of the Group, Apollo Hospitals, Chennai was established in 1983. Today
it is one of the most respected medical institutions in the world.

▪ Delhi
The first hospital to be JCI accredited in India, these 700 bedded hospitals is a very popular
destination for healthcare delivery of international standards.

14
▪ Hyderabad
The first functional health city in Asia and a perfect example of an integrated healthcare
system offering expert solutions across the healthcare space.

Key Medical Procedures

Apollo Hospitals has consistently led game-changing developments in healthcare by bringing
to the people, the latest innovations in key medical specialities and super specialities on par
with the West. We highlight in this section some of the latest procedures, services and
therapies that Apollo hospitals provides, in keeping with the tradition of providing
outstanding healthcare of international standards.

Treatments

• Percutaneous Mitral Valve Repair with MitraClip

MitraClip is a breakthrough innovative catheter-based technology that uses a small clip

attached to the mitral valve to treat degenerative mitral regurgitation.

• Proton Treatment Centre

15
In the world of medical technology, "state-of-the-art" is a continually upgrading objective and
the recent technological advances in genomics and the molecular sciences...

• da Vinci® Robotic Surgical System

The da Vinci® surgical system is the most advanced platform for minimally invasive surgery
available today. The robotic system is a breakthrough in surgical technology.

• Renaissance™ Robotic Surgical System

The Renaissance™ Robotic Surgical System transforms spine surgery from freehand
procedures to highly-accurate, state-of-the-art robotic procedures.

• Minimally Invasive Cardiac Surgery

MICAS or MICS CABG is a safe and complete operation that has revolutionised the way
coronary surgery is performed.

• Cosmetic Surgery

16
Our highly experienced specialists in cosmetic and plastic surgery, state-of-the-art
infrastructure & a patient centric ambience ensure world class medical attention and care.

• Oral & Maxillofacial Surgery

Our Centre for Oral & Maxillofacial Surgery provides the latest treatments for diseases of the
mouth, jaw and face.

• Bone Marrow Transplant

Bone Marrow Transplantation treats certain cancers like leukaemias, lymphomas and some
non-cancerous diseases like thalassaemia.

• Hand Microsurgery

Apollo Hospitals is one of the very few dedicated centers in the country for treating hand
injuries. Highly intricate and complex, surgeries are performed aided by a microscope.

• Infertility Care

17
Our Center for Assisted Reproduction offers world class infertility treatment with advanced
procedures and equipment and has been achieving high success rates.

• Hip Arthroscopy

Hip Arthroscopy is one of the most rapidly evolving arthroscopy techniques.

• Fractional Flow Reserve (FFR)

Fractional Flow Reserve (FFR) is used to determine if a cardiac patient really needs a stent or
bypass surgery or can be kept only on medicines avoiding any procedure.

Technology
• CyberKnife®

The world's first and only robotic radiosurgery system designed to treat tumors anywhere in
the body with sub-millimeter accuracy.

• Novalis Tx™

As one of the most advanced cancer treatment options available, Novalis Tx™ radiosurgery
& radiotherapy is changing the face of cancer treatment.

18
• G Scan

This new open standing MRI Machine is a revolutionary platform for musculoskeletal
applications including the spine.

• 320 Slice Advanced Technology

The 320 Slice CT Scanner is the 7 th of its kind in the world, and a first for India. It is an
advanced imaging system that scans your body from head to toe, in less than one minute.

• OCT Technique - Optical Coherence Tomography

OCT - Optical Coherence Tomography is a light-based catheter which acquires on an image

(photo) inside the heart blood vessel.

• Bioresorbable Vascular Scaffold (BVS)

The new Bioresorbable Vascular Scaffold (BVS), the latest advance in treating Coronary
Artery Disease is a non-metallic mesh tube that is used to treat a narrowed artery.

19
• Single Port Endoscopic technique of Carpal Tunnel Release (ECTR)

The ECTR technique, a first of its kind in India performed at Apollo Speciality Hospitals,
Teynampet, Chennai.

• True Beam STX

TrueBeam STX system brings cutting edge Cancer care to our Hospitals , helping us
tremendously in the fight against cancer.

• Gallium 68 (G68)

Gallium 68 (G68) is a high-definition technology with excellent resolution and images

virtually free of motion, it is now possible to diagnose even smaller lesions.

• Brain and Spine Suite

The state-of-the-art Brain and Spine Suite is equipped with the advanced intraoperative MRI
(iMRI) which is used to acquire an updated and detailed MR image data at virtually any time
during the surgery.

20
Apollo Expertise

They have pioneered many revolutionary procedures and technologies in India, and a whole
lot of health tourists come to opting either for medical care or elective procedures. Some of
the health procedures are-

➢ Total Knee /Hip Surgery Replacements

➢ Birmingham Hip Resurfacing Procedure
➢ Liver, Multi-Organ, and Cord Blood Transplants
➢ Coronary Angioplasty
➢ Stereotactic Radiotherapy and Radio surgery
➢ Cosmetic Surgery
➢ Bariatric Surgery - laparoscopic
➢ Laparoscopic Hernia Repair
➢ Laparoscopic Adrenalectomy
➢ Cardiac Surgeries

1.6 ORGANIZATIONAL POLICIES OF APOLLO HOSPITALS

The Risk Management Policy is intended to enable Apollo Hospitals Enterprise Limited
(‘AHEL’ or the ‘Company’) to adopt a defined process for managing its risks on an ongoing
basis. An important purpose of this document is to implement a structured and
comprehensive risk management process, which establishes a common understanding,
language and methodology for identifying, assessing, monitoring and reporting risks and
which provides management and the Board with the assurance that key risks are being
identified and managed. This policy provides the overall framework for the Risk Management
process of the Company. The policies underlined herein define the mechanism by which
AHEL will identify measure and monitor its significant risks. The Board is responsible for
establishing and overseeing the establishment, implementation and review of the risk

21
management process. The Board may delegate the responsibility of reviewing the
effectiveness of the risk management process. The Policy may be reviewed periodically with
the changes in business and market circumstances. All changes to the Policy should be
approved by the Board or by the authority as delegated by the Board.

➢ Policy on preservation of documents

The Board of Directors (the “Board”) of Apollo Hospitals Enterprise Limited (the
“Company”) has approved the following Policy (“The Policy”) of the Company for
preservation of Documents /Records maintained by the Company either in Physical Mode
or Electronic Mode (hereinafter referred to as “the Documents”). This Policy has been
formulated in accordance with the Regulation 9 of the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing
Regulations).
The purpose of this Policy is to ensure that the all the necessary documents and records of
the Company are adequately protected and preserved as per the statutory requirements and
to ensure that the records of the Company which are no longer needed or are of no value
are discarded after following the due process for discarding the same. This Policy is also
for the purpose of aiding employees of the Company in understanding their obligations in
retaining and preserving the documents and records which are required to be maintained
as per the applicable statutory and regulatory requirements.

➢ Policy on disclosure of material events

The Board of Directors (the “Board”) of Apollo Hospitals Enterprise Limited (the
“Company”) has adopted the following policy and procedures with regard to
determination of Materiality of events or information which are required to be disclosed to
the Stock Exchanges in terms of Regulation 30 of Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing
Regulations) (The Policy). This Policy has been formulated in accordance with Clause (ii)
of sub-regulation (4) of Regulation 30 of the Listing Regulations.
The purpose of this Policy is to determine materiality of events and information based on
criteria specified under clause (I) of sub-regulation (4) of Regulation 30 of the Listing
Regulations and to ensure that the Company shall make disclosure of events / information
specified in para A and B of Part A of Schedule III of the Listing Regulations to the Stock
Exchanges.

22
➢ Policy on determining material subsidiaries

Introduction the Board of Directors (The “Board”) of Apollo Hospitals Enterprise Limited
(the “Company”) has adopted the following policy and procedures with regard to
determination of Material Subsidiaries as defined below. The Board may review and
amend this policy from time to time.
This Policy will be applicable to the Company with effect from 1 December, 2015 in
terms of Clause 16 (c) of Chapter IV of Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (“LODR”). Policy Objective
To determine the Material Subsidiaries of Apollo Hospitals Enterprise Limited and to
provide the governance framework for such subsidiaries.

➢ Code of conduct for Board Members

Apollo Hospitals Enterprise Limited is committed to conducting its business in
accordance with applicable laws, rules and regulations and the highest standards of
business ethics and ethical conduct. This Code of Conduct ("Code") reflects the business
practice and principles of behaviour that support this commitment. The Board of Directors
("the Board") is responsible for setting the standards of conduct contained in the Code and
for updating these standards as appropriate to reflect legal and regulatory developments.
The Code is intended to provide guidance and help in recognizing and dealing with ethical
issues and to help foster a culture of honesty and accountability. Every Director is
expected to read and understand this Code and its application to the performance of his or
her duties, functions and responsibilities.

➢ Code of conduct for Senior Management Personnel

This Code for the Senior Management Personnel of the Apollo Hospitals Enterprise
Limited (the Company) helps the Company to maintain the Standard of the Business
Ethics and ensure compliance with the legal requirements, specifically under Clause 49 of
the Standard Listing Agreements of the Company with the Bombay and National Stock
Exchanges. The Code is aimed to prevent any wrongdoing and to promote ethical conduct
at the Board and Senior Management level.

➢ Whistle Blower Policy

As per the requirements of the Section 177 of the Companies Act, 2013, every listed
company and such class or classes of companies as prescribed in the Companies

23
 (Meetings of Board and its Powers) Rules, 2014 is required to establish a vigil mechanism
through the “Whistle Blower Policy” for directors and employees to report concerns of
unethical behaviour, actual or suspected fraud or violation of the Company’s Code of
Conduct. Apollo Hospitals Group believes in the conduct of affairs in a fair and
transparent manner by adopting highest standards of professionalism, honesty, integrity
and ethical behaviour and is committed to developing a culture where it is safe for all
employees to raise concerns about any unacceptable practice or any event of misconduct.
The organization provides a platform for directors and employees to disclose information
internally, which he/she believes shows serious malpractice, impropriety, abuse or wrong
doing within the company without fear of reprisal or victimization. Further, assurance is
also provided to directors and employees that prompt action will be taken to investigate
complaints made in good faith.

➢ Policy on Corporate Social Responsibility

Apollo Hospitals Enterprise Limited (‘Company’) has developed its Corporate Social
Responsibility Policy (‘Policy’) in accordance with section 135 of the Companies Act
2013 and the rules made there under.

➢ Policy on Related Party Transactions

This policy has been adopted by the Board of Directors of Apollo Hospitals Enterprise Ltd
(the Company), on the recommendation of the Audit Committee of the Company, to
ensure high standards of Corporate Governance while dealing with Related Party(is) (as
defined below). This policy shall be guided by the Framework Governing Related Party
Transactions and has been drafted with an objective of ensuring compliance with the
provisions pertaining to Related Party Transactions in the Companies Act, 2013(the Act)
read with the Rules framed thereunder and Revised Clause 49 of the Listing
Agreement(collectively known as “Regulations”). Purpose Related Party Transactions
(“RPTs”) are appropriate if they are in the interest of the Company and its stakeholders.
The purpose of the RPT Policy is to authorize, monitor, regulate and report contracts,
arrangements and transactions between the Company and a related party.

➢ Material Subsidiary Policy

Introduction the Board of Directors (The “Board”) of Apollo Hospitals Enterprise Limited
(the “Company”) has adopted the following policy and procedures with regard to

24
 determination of Material Subsidiaries as defined below. The Board may review and
amend this policy from time to time.
This Policy will be applicable to the Company with effect from 1 December 2015 in terms
of Clause 16 (c) of Chapter IV of Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (“LODR”).

➢ SEBI Insider Trading Policy

APOLLO HOSPITALS ENTERPRISE LIMITED POLICY FOR PREVENTION OF

INSIDER TRADING (in terms of SEBI (Prohibition of Insider Trading) Regulations,
2015)
Apollo Hospitals Enterprise Limited (the “Company”) is a public company whose equity
shares are listed on the National Stock Exchange of India Limited and BSE Limited and
subject to the rules and regulations issued by the Securities and Exchange Board of India
(SEBI). Additionally, the Company’s Global Depository Receipts (“GDRs”) are listed on
deluxe burg Stock Exchange. The Board of Directors of the Company have adopted this
Insider Trading Policy (the “Policy”) to comply with the SEBI (Prohibition of Insider
Trading) Regulations, 2015 (“SEBI Regulations”).

➢ Code for fair disclosure

The Securities and Exchange Board of India SEBI) notified the SEBI (Prohibition of
Insider Trading) Regulations, 2015 (Regulations) on January 2015, which is effective
from May 15, 2015. Pursuant to Regulation 8 of the Regulations, Apollo Hospitals
Enterprise Limited, (herein after called “AHEL”) is required to formulate a code of
Practices and Procedures for Fair Disclosure of unpublished price sensitive information
(Fair disclosure code). Accordingly, a Code of Practices and Procedures for Fair
Disclosure of Unpublished Price Sensitive Information was formulated by the Company.

25
 CHAPTER: 2
INDUSTRIAL ANALYSIS

2.1 INDUSTRY OVERVIEW

(GROWTH RATE & CONTRIBUTION TO GDP)

1980s

Since its inception, Apollo Hospitals has seen three decades and each has brought with it, its
own share of cherished memories.

➢ 1980 to 1990

Apollo Hospitals inaugurated in 1983, Medical insurance scheme was introduced, Announced
their first dividend within 3 years of operation

Apollo Hospitals was inaugurated in 1983 by Shri Giani Zail Singh (President of India). The
first Apollo Hospital was in Chennai. The hospital commenced commercial operations the
next year.

➢ 1983 - First Cardiac Surgery (Atrial septal Defect) First Apollo Health check.

➢ 1984 - First kidney transplantation at Apollo Chennai First Coronary Artery Bypass Graft
Surgery.

Dr. Prathap Reddy has always maintained that comprehensive health insurance is essential to
optimize the medical equation. Apollo Hospitals, under his guidance, was always the fore
runner in this field. As early as 1986, a medical insurance scheme was introduced, in
collaboration with United India Insurance Company Limited. The group showed great
promise, and blossomed very fast. Within three years of operation, they announced their first
dividend and by 1988 had expanded to Hyderabad.

26
➢ 1988 - Introduced Coronary Artery Stenting for the Ist time in India.

➢ 1988 - First pharmacy retail outlet in Chennai.

➢ 1989 - IVF Unit creates medical history with the birth of a baby by 'GIFT' procedure.

➢ 1990 - Revolutionary orthopaedic surgery - equalizing of limbs and deformity correction

by Lazaro procedure.

1991 to 2000
Apollo Hospitals rapidly scaled up Hospitals opened in Delhi, Madurai, Vishakhapatnam.
Apollo Chennai was awarded the ISO 9002 Certification

The 90's also saw Apollo Hospitals rapidly scaling up its operations and infrastructure.

1991 - First international patient - from Middle East.

In 1993, Apollo hospitals launched the 24-hour ambulance service.

1994 - Teletherapy Unit and India's first Dose Rate Micro Solectron installed at Apollo
Specialty Hospital.

1994 - Cardiac Surgery Programme completes 10,000 surgeries.

In 1995, the Apollo Speciality Hospital, a state-of-the-art cancer hospital in Chennai was
inaugurated.

1995 - First bone marrow transplant.

1995 - First multi organ transplant in the country at Apollo Hospitals, Chennai.

1995 - First Stereotactic radiosurgery unit in South Asia.

1996 - First dedicated lilac based stereotactic radio surgery unit - X knife with CLINAC 600
SR, outside of USA.

1996 - saw the Apollo Indraprastha Hospital inaugurated in New Delhi and the establishment
of the Apollo Nursing College.

1996 - Successfully completed 1,000 renal transplants.

The latter part of the 90's was marked by the inauguration of the hospital in Madurai and the
Apollo Heart and Kidney Hospital in Vishakhapatnam.

Recognition started pouring in for Apollo's commitment and efforts. In 1991, Dr. Prathap C
Reddy, along with Chief Nephrologist - Dr. M.K. Mani, were awarded the Padma Bhushan
Award.
27
In 1998 Apollo Hospital Chennai was awarded the ISO 9002 Certification.

1998 - First successful paediatric and adult liver transplants in India at Apollo Indraprastha
Hospital.

Dr. Prathap C Reddy received the prestigious Sir Nil rattan Sirca Memorial Oration (JIMA)
Award for single-handedly making super speciality care available to a vast section of society.

The story of Apollo Hospitals became a case study at the prestigious Harvard University.

First of its kind CT Scanner - 4th Generation at Apollo Hospitals, Hyderabad.

First High frequency Cath lab in India at Apollo Hospitals, Hyderabad.

ICU at Apollo Hospitals Hyderabad equipped with touch screen monitors - first of its kind in
Asia.

1999 - Dedicated stroke unit with 24 hours neurology cover, spiral CT scanner and Intra
vascular Neuro lab and Intra Cranial Doppler - first in India.

2000 - First telemedicine facility in the country inaugurated at Aragonda by Bill Clinton,
President of USA.

2000 to 2005

Apollo Delhi first in India to get JCI Accredited Hospitals opened in Ahmedabad, Bengaluru,
Kolkata Launched the Nationwide Emergency Number 1066.Apollo Hospitals, New Delhi
became the first hospital in India to receive accreditation from JCI, USA. Subsequently six of
our hospitals got the JCI accreditation. Apollo continued to grow as a healthcare powerhouse.
It added hospitals in Ahmedabad, Bilaspur, Mysore, Kolkata and Kakinada among others.
Apollo Aragonda, inaugurated in 2000 was the first telemedicine facility in the country. It was
inaugurated by the then President of USA, Bill Clinton.

2001 - Apollo Specialty Hospital, Chennai completes 100 Bone Marrow Transplants. In 2002,
Apollo started its First Med hospital network in Chennai. Apollo also launched its nationwide
single emergency number 1066.

In 2002, SACHi - The Saving A Child's Heart initiative was launched. SACHi is a community
service initiative aimed at providing quality paediatric cardiac care to children from
underprivileged sections of society. In 2002, Dr. Prathap C Reddy received the Ernst &
Young Entrepreneur of the Year Award. This was followed by the Asia-Pacific Bio-Business
Leadership Award in 2005.

2002 - The first Apollo Clinic inaugurated in Delhi.

28
Apollo Hospitals was recognized as a 'Super brand of India' in the healthcare sector for 2003
and 2004. Apollo Hospitals, Chennai was rated 'Best Private Sector Hospital' in India by The
Week magazine for 2003 and again in 2004. Saving A Child's Heart (SACHi) - was a runner-
up in the 'Corporate Governance' category at Hospital Management Asia 2004, a major
hospital expo in Bangkok, Thailand.

Apollo Clinics were awarded Franchisor of the Year for 2003 and 2004.

2004 - Apollo Hospitals, Hyderabad - First in the world to use satellite technology for
telemedicine.

2004 - First Drug eluting stent used at Apollo Hospitals, Hyderabad

2005 - First CRADLE launched in Gurgaon, Kakinada.

2005 - First 16-slice PET CT Imaging System in South East Asia launched at Apollo
Hospitals, Hyderabad.

2005 - First 64-Slice CT Angio System launched at Apollo Hospitals, Chennai.

2005 - First 3 Tesla MRI in India in New Delhi.

2006 to 2008

Apollo Health City launched at Hyderabad, Prime Minister launched the Apollo Reach
Initiative, Apollo Munich Insurance launched

In 2006, Dr Reddy was awarded the 'Modern Medicare Excellence Award 2006' by the ICICI
Group for his outstanding achievements in the healthcare industry. Avaya Global Connect
award was received for the second successive year in 2006 by Apollo Hospitals, Hyderabad
for customer responsiveness in the healthcare sector.

In 2006, Apollo Hospitals was nominated as the Consumer Healthcare Super Brand in an
independent survey conducted by the Super Brand Council, in association with AC-Nielsen.

2006 - Apollo Hospitals, Chennai receives accreditation from JCI, USA.

2006 - Apollo Hospitals Hyderabad receives accreditation for Acute Stroke from JCI, USA -
the first hospital in the world outside the United States to receive Disease Specific
Certification.

The first functional Health City in Asia was launched by Apollo in 2007.

2007 - Apollo Hospital at Bengaluru.

29
Apollo Hospitals, Chennai was once again rated 'Best Private Sector Hospital' in India by The
Week magazine in 2007 and 2008, Apollo Hospitals, Chennai & Hyderabad won the
Healthcare Awards 2008, instituted by the Express Healthcare Publications (The Indian
Express Group). The awards received included:

• Apollo Hospitals Chennai - Overall Best Hospital of the year

• Apollo Hospitals Chennai - Operational Excellence

• Apollo Speciality Hospital Chennai - Leveraging Global Opportunity

• Apollo Health City Hyderabad - Sustained Growth

• Apollo Health City Hyderabad - Patient Care

• Apollo Hospitals Group partnered with Munich Health, a world leader in the field of
health insurance to launch Apollo Munich.

In 2008, Apollo Hospitals turned 25.

The Prime Minister of India, Dr. Manmohan Singh launched the Apollo Reach Hospitals in
2008. Apollo Reach Hospitals was launched with the aim to make world class healthcare
accessible to people even in remote areas of the country.

2008 - Apollo Hospital at Karimnagar.

2008 - Apollo Hospitals, Bengaluru becomes the 6th Apollo hospital to receive accreditation
from JCI, USA.
2008 - 2,000 successful renal transplants completed.

2009 to 2010

6 Apollo Hospitals JCI Accredited Cyber Knife Radiosurgery launched at Chennai. Govt of
India released Commemorative Stamp Apollo Hospitals at Chennai, Delhi and Hyderabad
were reaccredited by the Joint Commission International (JCI), USA.

Apollo Hospitals at Bengaluru and Kolkata were accredited by the Joint Commission
International (JCI), USA. Apollo Speciality Cancer Hospital, Chennai launched the
CyberKnife™ Robotic Radiosurgery System.

The 'Apollo Liver Clinic' was launched at Apollo Hospitals, Chennai.

Apollo Hospitals Group featured among the top 5 in the India's 'Most Caring Hospitals'
survey done by India Today. The Novalis™ Radiosurgery system was launched at Apollo
Health City, Hyderabad.

30
2009 - Apollo Hospital at Karur.

2009 - ACE@25, a clinical balanced scorecard with international quality benchmarks

launched in all Apollo Hospitals.

2010 - Hospitals in Secunderabad, Bhubaneswar, Lavasa, Hyderguda.

2010 - M-health services launched.

2010 - Auditory brain implant performed independently for the first time in India

2011 to 2012

Became the World's busiest Solid Organ Transplant Centre, Apollo Day Surgery Centre
launched at Chennai, Apollo Specialty Hospital completed 1000 Aesthetic Surgeries

Apollo Hospitals, Chennai introduced an innovative healthcare delivery model - Apollo Day
Surgery, which is the first-of-its-kind in Chennai and a dedicated facility for minor surgeries
requiring short-stay. Apollo Hospitals Centre for liver disease and transplantation completed
100 liver transplantations in less than 4 years with over 90% success rate, creating a milestone
in the history of medicine.

2.2 CURRENT ISSUES OF APOLLO HOSPITALS

Every day, whenever he is in Chennai, Dr Prathap C. Reddy, founder and Chairman of Apollo
Hospitals Enterprise, visits his group's flagship hospital on Greams Road. Reddy, 79, has been
following this routine ever since the hospital was set up three decades ago. He inspects the
premises, meets the staff and sees patients. He often talks to patients' relatives as well to find
out what they think of the facilities the hospital provides.

This constant desire to improve may well be the secret of his success. Reddy has transformed
not just his company, but also, in the process, India's health-care sector . He opened the
country's first corporate hospital, in Chennai on September 18, 1983, at a time when hospitals
were mostly run by state backed institutions or charitable organisations. Over the next two
decades, Apollo became India's largest operator of hospitals. Many others have since followed
suit, creating a new business model and providing the wider public with a health-care
alternative which never existed earlier. Apollo today owns 36 hospitals in India with 5,800
beds, and manages another 13, including one in Bangladesh, with 2,038 beds.

31
In recent years, however, Apollo has been overtaken by the younger Fortis Healthcare. Fortis,
controlled by the billionaire brothers Malvinder and Shivinder Singh, opened its first hospital
in 2001 and expanded rapidly through acquisitions. It now operates 75 hospitals with 12,000
beds in India and several other countries. India accounts for 68 hospitals and 10,000 beds.

Apollo has also been feeling the heat from regional rivals such as Max Healthcare in north
India, Manipal Hospitals in the south, Vaatsalya Healthcare in the tier II and III towns of
southern India, and specialised chains like the Bangalore-based HealthCare Global
Enterprises. Vaatsalya, for instance, runs 17 hospitals in Tier II and Tier III towns in Andhra
Pradesh and Karnataka. Its co-founder and CEO Ashwin Naik says the company aims to
increase the number of hospitals to 50 in four states. HealthCare operates 25 cancer treatment
hospitals, mostly in smaller cities. It was set up in 2005 and has 425 oncologists in its
network. "The focus is on personalised medicine with in-depth analysis so that there is proper
cancer treatment instead of a hit-and-miss approach," says founder and Chairman B.S.
Ajaikumar. The health-care sector is also changing. Lifestyle diseases such as diabetes are on
the rise, and the growing spread of health insurance has made costly health-care facilities
affordable for many more than before.

32
While Apollo initially focused solely on expensive medical care at its high-end hospitals, it is
now opening neighbourhood clinics as well where it does not conduct surgeries but only
offers consultations and diagnostic services. It is also setting up specialised clinics for dental
care, diabetes (branded as "sugar" clinics), and dialysis.

2.3 COMPETITORS OF APOLLO HOSPITALS

Rank Company Leadership CEO Employees Total Revenue

Score Funding

Suneeta Reddy 81/100 54,698 $0 $1.4B

Managing Director

Dilip Jose 92/100 5,300 $146M $258.7M

CEO

2 Ravindranath
Kancherla 64/100 273 $33.2M $140.4M

Managing Director

3 Radhakrishnan K
70/100 16 -- $3.8M
Co-Founder

4 Surender Rao
87/100 3,000 -- $80M
Managing Director

5 Nandakumar Jairam
80/100 12,000 $311M $600M
Chairman & CEO

6 Manivannan
Selvaraj 67/100 715 $19.5M $12.1M

Managing Director

33
7 Rajit Mehta
CEO -- -- -- --

8 Naresh Trehan
78/100 6,000 $155.4M $52M
Managing Director

9 Meena Ganesh
66/100 3,250 $75.1M $27.5M
CEO

10 Emmanuel Rupert
59/100 543 -- $96M
CEO

Chennai Meenakshi Multispeciality Hospital Ltd. News and Updates

Chennai Meenakshi Multi speciality Hospital Ltd has informed BSE that a Meeting of the
Board of Directors of the Company is scheduled to be held on February 11, 2017, inter alia, to
consider, approve and take on record the Unaudited Financial Results of the Company for the
quarter ended December 31, 2016. In view of the above, the Trading Window in the
company’s scripts by the Directors and Designated Employees of the Company will remain
closed from January 18, 2017 to February 13, 2017 (both days inclusive) in terms of the
Company’s Code of Prevention of Insider Trading read with SEBI (Prohibition of Insider
Trading) Regulations.
Statement of Investor Complaint under Reg. 13(3) of SEBI (LODR) Regulations, 2015 for
Quarter ended December 31, 2016| Announcement.

Birla Pacific Medspa Ltd. News and Updates

The Exchange has received the disclosure under Regulation 29(2) of SEBI (Substantial
Acquisition of Shares & Takeovers) Regulations, 2011 for JM Financial Capital Ltd
The Exchange has received the disclosure under Regulation 29(2) of SEBI (Substantial
Acquisition of Shares & Takeovers) Regulations, 2011 for JM Financial Capital Ltd
Disclosures under Reg. 29(2) of SEBI (SAST) Regulations, 2011

34
2.4 ENVIRONMENT SCANNING
Apollo Hospital, established in 1983, whose mission is: "Let everyone can accept a world-
class health care service." Is the price and quality, convenient services, is the core of the
Apollo Hospital. Selection results 2013 Asian Hospital Management Awards in the Asian
Management Conference HMA website: Apollo Hospitals India won several awards, is Asia
's only super-class Asian Hospital. Over the past 30 years, India's Apollo Hospitals has 37
hospitals distributed around the world , according to the introduction, in the total amount of
the medical services market in India , Apollo Hospitals will occupy more than 50% .they not
only became one of India's largest integrated healthcare group , but also to promote the
success of the revolutionary development of private hospitals in India . In this hospital, has a
license to practice medicine in the United States and Europe for more than 60% of doctors
probably even have been able to operate about forty more than 3000 cases of hospital surgeon

Analysis of the Organizing’s Business Environment and of Industry Survival and

Success Factors

➢ Macro Environment Analysis

• Political /legal factor;

Every government policy, will result in a significant impact on business rules Apollo
hospital, so politics is to increase the risk factor Apollo Hospital. Since India's
independence in 1947, the government established an Indian for all public health
system. The Government will not only help the public hospital, it can stabilize the
operation, but also to encourage the healthy development of private hospitals. This is
the public, private hospitals coexistence situation, so that the whole of India medical
institutions (including the Apollo Hospital), to get a good space for development.

• Social/Economic factor;

Due to lack of funds in India, public hospitals cannot meet the needs of all Indians. In
order to maintain the public health system can effectively run , the Indian government
increased private funding of the hospital, so that private hospitals to get more profit in
the case , the use of their profits back to society, reduce the burden on public hospitals
.This makes the Apollo Hospitals have more money , equipment and optimization
within the hospital environment , while better reputation, in order to attract more
customers

35
 • Technology factor;

Apollo Hospitals not only has the world's most advanced medical equipment , the
world's leading medical technology, and every doctor of medicine are very skilled in
many medical fields have reached world-class level of treatment .With these excellent
treatment conditions , can greatly enhance the therapeutic effect, while the low price
makes the world come to attract patients in treatment. Especially for Western people,
these good and cheap Hospital, Western countries cannot be given, so for the people
of the West has great appeal.

• Environmental policies factor;

While India gives the impression that more is dirty, messy, poor conditions, but in the
overall health situation is not very ideal conditions, medical standards in India
compared to other developing countries is much better. Indian star standard
management practice for hospital and medical care for its health care standards and
hardware facilities as standard, divided Samsung, three four-star and five-star
standards. Apollo hospital with its comfortable environment, clean equipment, has
won the praise given to patients with various countries.

• Globalization factor:

Forces of globalization also affects the Indian healthcare industry. Apollo Hospital
active medical outsourcing, the annual revenue for the UK to provide medical services
to more than $ 1 billion. This makes Britain the patient to see a doctor at the hospital
queuing time is much shorter. This shows that the forces of globalization for India 's
economy because of the rapid development of the medical industry, while the effects
of globalization can be made stronger so that Apollo Hospitals greater.

2.5 PORTER’S FIVE FORCES MODEL IN APOLLO HOSPITALS

1. Threats of new entrants

Threat of new entrants reflects how new market players impose threats to the existing market
players. If the industry will be profitable and barriers to enter the industry will be low, it will
attract more players and hence, the threat of new entrants. will be high.

36
Here are some factors that reduce the threat of new entrants for Apollo Hospitals of India A:

• Entry in the industry requires substantial capital and resource investment. This force also
loses the strength if product differentiation is high and customers place high importance to
the unique experience.
• Apollo Hospitals of India A will face the low threat of new entrants if existing regulatory
framework imposes certain challenges to the new firms interested to enter in the market.
In this case, new players will be required to fulfil strict, time consuming regulatory
requirements, which may discourage some players from entering the market.
• The threat will be low if psychological switching cost for consumers is high and existing
brands have established a loyal customer base.
• New entrants will be discouraged if access to the distribution channels is restricted.

2. Threat of Substitute Products or services

The availability of substitute products or services makes the competitive environment

challenging for Apollo Hospitals of India A and other existing players. High substitute threat
shows that customers can use alternative products/services from other industries to meet their
needs. Various factors determine the intensity of this threat for Apollo Hospitals of India A

The Threat of Substitute Products or services increases when;

• A cheaper substitute product/service is available from another industry

• The psychological switching costs of moving from industry to substitute products are low.
• Substitute product offers the same or even superior quality and performance as offered by
Apollo Hospitals of India A’s product.

However, this threat is substantially low for Apollo Hospitals of India A when;

• The switching cost of using the substitute product is high.

• Customers cannot derive the same utility from substitute product as they derive from the
Apollo Hospitals of India A’s product.

3. Rivalry among existing firms

The Rivalry among existing firms shows the number of competitors that give tough
competition to the Apollo Hospitals of India a High rivalry shows Apollo Hospitals of India A
can face strong pressure from the rival firms, which can limit each other’s growth potential.

37
Profitability in such industries is low as firms adopt aggressive targeting and pricing strategies
against each other.

The Rivalry among existing firms will be low for Apollo Hospitals of India A if;

• There are only a limited number of players in the market

• The industry is growing at a fast rate
• There is a clear market leader
• The products are highly differentiated, and each market player targets different sub-
segments
• The economic/psychological switching costs for consumers are high.
• The exit barriers are low, which means firms can easily leave the industry without
incurring huge losses.

4. Bargaining Power of Suppliers

Bargaining power of suppliers in the Porter 5 force model reflects the pressure exerted by
suppliers on business organisations by adopting different tactics like reducing the product
availability, reducing the quality or increasing the prices. When suppliers have strong
bargaining power, it costs the buyers- (business organisations). Moreover, high supplier
bargaining power can increase the competition in the industry and lower the profit and growth
potential for Apollo Hospitals of India A Similarly, weak supplier power can make the
industry more attractive due to high profitability and growth potential.

Bargaining power of suppliers will be high for Apollo Hospitals of India A if:

• Suppliers have concentrated into a specific region, and their concentration is higher
than their buyers.
• This force is particularly strong when the cost to switch from one supplier to other is
high for buyers (for example, due to contractual relationships).
• When suppliers are few and demand for their offered product is high, it strengthens the
suppliers’ position against Apollo Hospitals of India A
• Suppliers’ forward integration weakens the Apollo Hospitals of India A’s position as
they also become the competitors in that area.
• If Apollo Hospitals of India A is not well educated, does not have adequate market
knowledge and lacks the price sensitivity, it automatically strengthens the suppliers'
position against the organisation.

38
 • Other factors that increase the suppliers’ bargaining power include-high product
differentiation offered by suppliers, Apollo Hospitals of India A making only a small
proportion of suppliers’ overall sales and unavailability of the substitute products.

5. Bargaining Power of Buyers

Bargaining power of buyers indicates the pressure that customers exert on the business
organisations to get high quality products at affordable prices with excellent customer service.
This force directly influences the Apollo Hospitals of India A’s ability to accomplish the
business objectives. Strong bargaining power lowers profitability and makes the industry
more competitive. Whereas, when buyer power is weak, it makes the industry less
competitive and increase the profitability and growth opportunities for Apollo Hospitals of
India

There are some factors that increase the bargaining power of buyers:

• A more concentrated customer base increases their bargaining power against Apollo
Hospitals of India A
• Buyer power will also be high if there are few in number whereas a number of sellers
(business organisations) are too many.
• Low switching costs (economic and psychological) also increase the buyers’
bargaining power.
• In case of corporate customers, their ability to do backward integration strengthen
their position in the market. Backward integration shows the buyers' ability to produce
the products themselves instead of purchasing them from Apollo Hospitals of India A
• Consumers’ price sensitivity, high market knowledge and purchasing standardised
products in large volumes also increase the buyers' bargaining power.

39
 CHAPTER: 3

MARKETING STRTEGIES

3.1 PRODUCTS & SERVICES OF APOLLO HOSPITALS

Finished Products

SALES
PRODUCT INSTALLED PRODUCTION SALES
UNITS VALUE (Rs
NAME CAPACITY QUANTITY QUANTITY
Cr.)

HealthCare
N.A. 0.00 0.00 0.00 3085.3760
Services

Pharmaceuticals N.A. 0.00 0.00 0.00 2323.6950

Services
Apollo Cosmetic Clinics
Apollo Cosmetic Clinic is a part of Apollo Hospitals, a dedicated center which specializes in
cosmetic plastic surgeries. Apollo Cosmetic Clinics is headed by Manuel Ahoyed.

40
Apollo Diagnostics
Apollo Diagnostics is a part of Apollo Health and Lifestyle Limited (AHLL) launched in
April 2015.

Apollo Pharmacy
Apollo Pharmacy is a part of Apollo Hospitals. It is India's first and largest branded pharmacy
network, with over 2200 plus outlets

3.2 4 p’s of APOLLO HOSPITALS

1. PRODUCT
➢ The service product is an offering of commercial intent having features of both
intangible and tangible, seeking to satisfy the new wants and demands of the
consumer.
➢ Quality Level
➢ Accessories
➢ Packaging
➢ Product line:
➢ Brand name

APOLLO HOSPITAL PRODUCT

➢ Apollo hospital has more than 53 branches
across the country.
➢ Best for heart problems and Knee and Hip replacement surgeries besides other major
ailments.
➢ The specialties include – Heart, Orthopedics, Spine, Cancer Care, Gastroenterology,
Neurosciences, Nephrology & Urology Critical Care.

2. PRICE
A particular product or service is acceptable to the customer at particular price and if the price
increases then the same product or service might become less acceptable to the customer.
Pricing prices may be profit oriented, government controlled, competitive or customer
oriented

41
Service pricing follows the principles and practices of pricing of goods and therefore they are
either cost based or market based.
1.Demand fluctuations should be successfully handled
2.Service pricing should be such as to provide value addition and quality indication
3.The pricing strategy should come up with the degree of competition.

APOLLO HOSPITAL PRICE

The hospital is priced premium and it can afford to do the same because of its positioning and
its assurance as well as the reliability on the brand of Apollo hospitals. Along with it, it also
helps that there are so many locations and specialties in Apollo hospitals. Thus, a patient is
reassured of his wellbeing.
Pricing in Private Hospitals
• Cost based pricing: Price: In hospital services, this method is cumbersome
because the tracking and identification of costs are difficult. Fee for services, however can
be used by doctors. Notwithstanding, some hospitals in the private sector follow this
method.
• Competition based pricing: Heterogeneity of service across and within providers
makes the approach complicated.
• Demand based pricing: Cost based pricing and competition-based pricing do not
consider certain criteria. Demand based pricing involves price setting consistent with
customer perception of value.

3. PLACE
• The means by which services get from producer to consumer and where they can be accessed by
the consumer.
• The more places to buy the product and the easier it is made to buy it, the better forth business.
• The kind of services a hospital is renderings very important for determining the location of the hospital.

APOLLO HOSPITAL PLACE

➢ Apollo Hospitals has around 8500 beds across 53 hospitals in India and overseas.
➢ It is located in 15 different places across India which include Ahmadabad, Anaconda,
Bangalore, Bhubaneswar, Ballarpur, Chennai, Delhi, Hyderabad, Kakinada, Kolkata,
Madurai, Mauritius, Mysore Noida.
➢ It is located internationally in Nepal, Bhutan, Bangladesh, Sri lanka, kawait.

42
4. PROMOTIONS
➢ Quality of treatment
➢ Word of mouth
➢ Medical camp
➢ Medical tourism
➢ Major surgery
➢ Social networking

APOLLO HOSPITAL PROMOTION

Apollo promotes itself through the Community Initiatives viz
➢ SACH – Save a Childs Heart
➢ CURE – Extends preventive as well as rehabilitative cancer treatment to the economically
backward.
➢ SAHI – Society to Aid the Hearing Impaired
➢ DISHA – Distance Health care Advancement Project

3.3 STP (Segmentation, Targeting and Positioning)

Khazanov National (category Government-owned companies of Malaysia) owned by IHH,
15% by Khazanov) Apollo Hospitals (10.9% owned by IHH) Pantai Holdings (100% owned
by IHH) Parkway Hospitals (100% owned by IHH) International

Khazanov National Berthed is the sovereign wealth fund of the Government of Malaysia.
Khazanov holds and manages selected commercial assets of the Government and undertakes
strategic investments on behalf of the nation. It is involved in sectors such as power,
telecommunications, finance, healthcare, aviation, infrastructure, leisure and tourism, and
property, amongst others. The fund is a member of the International Forum of Sovereign
Wealth Funds, which maintains and promotes the Santiago Principles on best practices in
managing sovereign wealth funds.

Its portfolio includes Axiata, CIMB, Tenaga National, IHH Healthcare, UEM
Group, Telekom Malaysia, Malaysia Airlines, and Malaysia Airports.

Khazanov was incorporated under the Companies Act, 1965 in Malaysia on 3 September
1993 as a public limited company and commenced operations a year later. Khazanov is owned
by the Malaysian government and administered by the Minister of Finance Incorporated,
except for one share held by the Federal Land Commissioner.

43
Khazanov is governed by a ten-member Board of Directors comprising representatives from
the Government and the corporate sector with diverse professional backgrounds and
expertise. Anji Raza, the current Prime Minister of Malaysia and Minister of Finance, is the
Chairman of the Board.

In 2016, Khazanov registered a proforma profit before tax (PBT) of RM1.55 billion, a 32%
increase over the previous year.[2] Its portfolio decreased 3.4% to RM145.1 billion in terms of
its realisable asset value (RAV), and declined 6.4% to RM101.9 billion in terms of net worth
adjusted (NWA). Khazanov also made investments totalling RM8.7 billion and 13
divestments with proceeds amounting to RM4.7 billion, with a gain on divestments of RM2.9
billion for the year.

➢ TARGETING OF APOLLO HOSPITAL

❖ Apollo 16

Apollo 16 was the tenth manned mission in the United States Apollo space program, the
fifth and penultimate to land on the Moon and the first to land in

❖ Apollo Munich Health Insurance

the Apollo Hospitals group and Munich Health, one of the three business
segments of Munich Re; a leading reinsurance company based in
Germany. Apollo Munich

❖ Buzz Aldrin

American engineer and former astronaut. As the Lunar Module Pilot on Apollo 11, he was
one of the first two humans to land on the Moon, and the second person

❖ Eugene Cernan

Pilot of Gemini 9A in June 1966, as Lunar Module Pilot of Apollo 10 in May 1969, and as
Commander of Apollo 17 in December 1972, the final Apollo lunar

❖ Joseph Francis Sheaf

Flight, and later as head of the Apollo Spacecraft Program Office, Shea played a key role

44
 in shaping the course of the Apollo program, helping to lead

❖ Wally Shira

(30 cm) of the sister Gemini 7 spacecraft in December 1965. In October 1968, he
commanded Apollo 7, an 11-day low Earth orbit shakedown test of the three-man

❖ Michael Collins

Wilford Hall Hospital at Lockland Air Force Base, Texas, and he spent three months in a
neck brace. It also removed Collins from the crew of Apollo 9 and moved

❖ Neil Armstrong

space emergency. Armstrong's second and last spaceflight was as commander of

Apollo 11, the first manned Moon landing mission in July 1969.

❖ Subramanian Kalyan Raman

1934) is an Indian neurosurgeon and a former head of the Department of Neurosurgery

at Apollo Hospitals, Chennai. He was known for his pioneering techniques

POSITIONING OF APOLLO HOSPITAL

• Ether Dome (redirect from Ether Dome, Massachusetts General Hospital) statue of Apollo in
the Ether Dome was given to the MGH by statesman and orator, Honourable Edward Everett
in March 1845. In exchange, the hospital trustees the Ether Dome is a surgical operating
amphitheatre in the Bulfinch Building at Massachusetts General Hospital in Boston. It served
as the hospital's operating room from its opening in 1821 until 1867. It was the site of the first
public demonstration of the use of inhaled ether as a surgical aesthetic on October 16, 1846,
otherwise known as Ether Day. Crawford Long, a surgeon in Georgia, had previously
administered sulfuric ether in 1842, but this went unpublished until 1849.[ The Ether Dome
event occurred when William Thomas Green Morton, a local dentist, used ether to
anesthetize Edward Gilbert Abbott. John Collins Warren, the first dean of Harvard Medical
School, then painlessly removed part of a tumour from Abbott's neck. After Warren had
finished, and Abbott regained consciousness, Warren asked the patient how he felt.

45
 Reportedly, Abbott said, "Feels as if my neck's been scratched". Warren then turned to his
medical audience and uttered "Gentlemen, this is no Humbug". This was presumably a
reference to the unsuccessful demonstration of nitrous oxide anaesthesia by Horace Wells in
the same theatre the previous year, which was ended by cries of "Humbug!" after the patient
groaned with pain.
• Ganesh Kumar Mani (category Recipients of the Padma Shri in medicine) about my strategy
to save him. Finally, I prepared for his arrival at Apollo Hospital, temporary pace makers
were in place and he was operated upon the next Ganesh Kumar Mani hails from Delhi and
did schooling at MEAHS School in the city to pass the higher secondary examination in
1964. Choosing medicine as his career, Mani graduated from the Maulana Azad Medical
College, MBBS, in 1969 and secured the post graduate degree of MS in general surgery from
the same institution in 1975. Subsequently, he joined the Christian Medical College and
Hospital, Vellore, passed Much in cardiothoracic surgery in 1979 and the next year, in 1980,
passed MNAMS in cardiothoracic and vascular surgery from the National Academy of
Medical Sciences.

Mani is reported to have performed 500 consecutive bypass surgeries with zero mortality rate,
with an overall reduction in the morbidity rate of the hospital he worked for, down to one per
cent from the earlier 20 per cent. He is considered as a pioneer of a technique known
as Beating Heart Coronary Artery Bypass with autologous blood with minimal to nil usage of
homologous blood transfusion, and is rated by many as one of the safest cardiac surgeons in
India

3.4 CHANNELS OF DISTRIBUTION OF APOLLO HOSPITALS

46
Selection of Sample Hospitals

Two corporate hospitals namely APOLLO (Jublee Hills) and CARE (Banjara Hills) in
Hyderabad, Andhra Pradesh have been selected which are running on similar and almost
identical facilities.

Selection of Sample Size and its Justification

The sample is taken from three categories after giving adequate representation to all
classes. The three classes include doctors, nurses and administrative Personnel. Following
table showing the population and sample size of two selected super specialty hospitals.
Table No: 1 Population and Sample size in Selected Hospitals

S.No. Particulars APOLLO CARE Total

Population Sample Population Sample Population Sample

1 Doctors 156 75 127 75 283 150
2 Nursing 340 150 320 150 660 300

Staff
3 Administrative 45 35 40 35 85 70
Personnel

Discussion and Inference

Pertaining to the questionnaire to doctors in APOLLO, out of 156 doctors, the questionnaire
was distributed to 85 and only 75 response sheets were taken for final analysis. Out of 127
doctors in CARE, the questionnaire was distributed to 90 and 75 response sheets were
selected for final analysis. In the case of questionnaire relating to nursing staff, in APOLLO,
out of 560 nurses, 340 nurses are working on permanent basis and 220 are working on
contract basis. The questionnaires were distributed to 170 nurses who are working on
permanent basis and finally 150 questionnaires were selected for analysis. In the case of
CARE hospital, out of 510 nurses, 320 nurses are working on permanent basis and remaining
190 are working on temporary basis. The questionnaires were distributed to 180 respondents
who are working on permanent basis and 150 response sheets were taken for final analysis.
The questionnaires developed for administrative personnel was distributed to 45 numbers in
APOLLO, and 35 were selected as sample for final analysis. Out of 40 administrative
personnel in CARE hospital, 35 persons are selected for final analysis.
47
3.5 APOLLO PROMOTIONAL STRATERGIES
A past student of Ananda College, Naraka Goodhew entered the Engineering faculty
of University of Morata in 1986. He began his career quite late having lost two years since
completing A/L due to the long backlog in entering universities and two more years due
to JVP insurgency in the late 1980s.

He started his career at Unilever Ceylon as a management trainee, and within less than 10
years, Godahewa became the youngest CEO of MAS Holdings, one of Sri Lanka’s corporate
entities and an exporter of apparel products to international brands such as Victoria's
Secret Stores, Nike, Gap and Marks & Spencer. He managed several overseas operations for
MAS Holdings in countries such as Vietnam, Madagascar Indonesia and India gaining
valuable experience in setting up international joint venture partnerships. With exposure to six
different industries, namely FMCG, Telecommunications, Apparel, Insurance, health care,
and tourism. He has served both in private sector and public sector.

Involving in a National Cause at Sri Lanka Insurance

Presidents Mahinda Rajapaksa's Visit to SLIC in 2009 after the Government Take Over the
year 2009 was a critical year for the insurance company Sri Lanka Insurance corporation. As a
result of a Supreme court order the largest insurance company in the country was handed over
from private sector to the Government. Customer confidence was falling rapidly and unions
were gaining upper hand. This was the time financial institutions across borders were
collapsing due to world financial crisis. A crisis at the Sri Lanka Insurance Cooperation would
was triggered a chain reaction in Sri Lanka too. Godahewa was appointed as competent
authority of Sri Lanka Insurance in June 2009 with the task of handling the company affairs.
Subsequently appointed as the managing Director of Sri Lanka Insurance, Godahewa,
restructured the company within a very short period of time and posted some of the best
financial results with the revenue growth of over 30%. He was instrumental in launching the
new advertising campaign of Sri Lanka Insurance ‘Like Father Like Mother (Peakean,
Awakenment)’ in 2009 highlighting the two core strengths of Sri Lanka insurance of having
the government protection and private sector type service standards. He also rebranded life
and motor insurance products of SLIC making both categories the fastest growing insurance
brands in the market. During his tenure as Managing Director, Sri Lanka Insurance made
several strategic investments which were also resulted in substantial unrealized capital gains
to the company.

48
 CHAPTER: 4
FINANCIAL ANALYSIS

4.1 SOURCES OF FINANCE OF APOLLO HOSPITALS

BALANCE SHEET OF APOLLO MAR MAR MAR MAR MAR

HOSPITALS ENTERPRISES (in Rs. Cr.) '19 '18 '17 '16 '15

12 mths 12 mths 12 mths 12 mths 12 mths

SOURCES OF FUNDS

Total Share Capital 69.56 69.56 69.56 69.56 69.56

Equity Share Capital 69.56 69.56 69.56 69.56 69.56

Reserves 3,813.85 3,623.94 3,509.45 3,360.57 3,091.51

NETWORTH 3,883.41 3,693.50 3,579.01 3,430.13 3,161.07

Secured Loans 2,586.38 2,401.92 2,475.17 1,802.29 1,314.05

Unsecured Loans 466.64 494.71 193.55 299.67 202.53

TOTAL DEBT 3,053.02 2,896.63 2,668.72 2,101.96 1,516.58

TOTAL LIABILITIES 6,936.43 6,590.13 6,247.73 5,532.09 4,677.65

Gross Block 5,104.52 4,620.76 4,210.67 3,863.75 3,179.11

Less: Accum. Depreciation 1,134.71 859.25 610.66 932.13 751.57

NET BLOCK 3,969.81 3,761.51 3,600.01 2,931.62 2,427.54

Capital Work in Progress 818.81 698.30 327.55 0.00 512.16

49
INVESTMENTS 1,085.27 900.27 1,063.77 909.77 713.02

Inventories 561.15 538.68 442.50 422.15 332.50

Sundry Debtors 909.32 749.94 663.59 615.11 549.55

Cash and Bank Balance 277.66 294.56 272.75 255.76 249.23

Total Current Assets 1,748.13 1,583.18 1,378.84 1,293.02 1,131.28

Loans and Advances 806.34 868.80 822.98 1,124.91 1,035.96

Total CA, Loans & Advances 2,554.47 2,451.98 2,201.82 2,417.93 2,167.24

Current Liabilities 1,395.88 1,154.43 883.58 1,253.16 1,011.87

Provisions 96.04 67.52 61.84 53.17 130.44

Total CL & Provisions 1,491.92 1,221.95 945.42 1,306.33 1,142.31

NET CURRENT ASSETS 1,062.55 1,230.03 1,256.40 1,111.60 1,024.93

TOTAL ASSETS 6,936.44 6,590.11 6,247.73 4,952.99 4,677.65

Contingent Liabilities 1,065.38 1,735.81 632.84 2,188.89 1,424.79

Book Value (Rs) 279.13 265.48 257.25 246.55 227.21

4.2 Financial Ratios of Apollo Hospitals Enterprises

1. Gross profit ratio:

Gross profit ratio (GP ratio) is a profitability ratio that shows the relationship between gross
profit and total net sales revenue. It is a popular tool to evaluate the operational performance
of the business. The ratio is computed by dividing the gross profit figure by net sales.

50
Formula:

The following formula/equation is used to compute gross profit ratio:

KEY FINANCIAL RATIOS OF APOLLO HOSPITALS MAR MAR MAR MAR MAR
ENTERPRISES (in Rs. Cr.) '19 '18 '17 '16 '15

GROSS PROFIT MARGIN (%) 8.61 7.76 8.46 10.02 11.32

2. Inventory Turnover Ratio:

The inventory turnover ratio is an efficiency ratio that shows how effectively inventory is
managed by comparing cost of goods sold with average inventory for a period. This measures
how many times average inventory is “turned” or sold during a period. In other words, it
measures how many times a company sold its total average inventory dollar amount during
the year.

KEY FINANCIAL RATIOS OF APOLLO HOSPITALS MAR MAR MAR MAR MAR
ENTERPRISES (in Rs. Cr.) '19 '18 '17 '16 '15

INVENTORY TURNOVER RATIO 14.86 13.33 14.24 12.81 13.81

3. Current Ratio:

The current ratio is a liquidity ratio that measures a company's ability to pay short-

51
term obligations or those due within one year. It tells investors and analysts how a
company can maximize the current assets on its balance sheet to satisfy its current debt
and other payables.

KEY FINANCIAL RATIOS OF APOLLO HOSPITALS MAR MAR MAR MAR MAR
ENTERPRISES (in Rs. Cr.) '19 '18 '17 '16 '15

CURRENT RATIO 1.27 1.56 2.21 1.66 1.80

4. Return on Sales Ratio:

The return on assets ratio, often called the return on total assets, is a profitability
ratio that measures the net income produced by total assets during a period by
comparing net income to the average total assets. In other words, the return on
assets ratio or ROA measures how efficiently a company can manage its assets to
produce profits during a period.

KEY FINANCIAL RATIOS OF APOLLO MAR MAR MAR MAR MAR

HOSPITALS ENTERPRISES (in Rs. Cr.) '19 '18 '17 '16 '15

RETURN ON ASSETS EXCLUDING 279.13 265.48 257.25 246.55 227.21

REVALUATIONS

RETURN ON ASSETS INCLUDING 279.13 265.48 257.25 246.55 227.21

52
REVALUATIONS

5. CASH PROFIT MARGIN OR RETURN ON SALES RATIO:

The profit margin ratio, also called the return on sales ratio or gross profit ratio, is a
profitability ratio that measures the amount of net income earned with each dollar
of sales generated by comparing the net income and net sales of a company. In
other words, the profit margin ratio shows what percentage of sales are left over
after all expenses are paid by the business.

KEY FINANCIAL RATIOS OF APOLLO HOSPITALS MAR MAR MAR MAR MAR
ENTERPRISES (in Rs. Cr.) '19 '18 '17 '16 '15

CASH PROFIT MARGIN(%) 7.21 7.02 8.30 10.82 11.19

4.3 NET PROFIT /BALANCE SHEET OF APOLLO HOSPITAL

Apollo Hospitals Enterprises
Standalone Profit & Loss
------------------- in Rs. Cr. -------------------
account
Mar 16 Mar 15 Mar 14 Mar 13 Mar 12

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME
Revenue from Operations 5,409.07 4,592.79 3,861.63 3,317.79 2,800.07

53
[Gross]
Revenue from Operations
5,409.07 4,592.79 3,861.63 3,317.79 2,800.07
[Net]
Total Operating Revenues 5,409.07 4,592.79 3,861.63 3,317.79 2,800.07
Other Income 68.89 45.27 22.46 31.03 27.85
Total Revenue 5,477.96 4,638.06 3,884.09 3,348.82 2,827.92
EXPENSES
Purchase of Stock-In Trade 1,844.22 1,404.15 1,096.28 863.99 689.88
Operating and Direct Expenses 1,111.03 1,069.08 951.60 864.26 784.66
Changes in Inventories Of FG,
-77.61 -49.27 -45.99 -8.43 -19.07
WIP And Stock-In Trade
Employee Benefit Expenses 845.52 720.96 610.22 524.40 428.51
Finance Costs 133.58 83.29 87.07 72.63 63.60
Depreciation and Amortisation
198.13 158.04 129.08 108.52 91.13
Expenses
Other Expenses 945.29 769.80 635.66 520.02 451.69
Total Expenses 5,000.16 4,156.05 3,463.92 2,945.38 2,490.41
Mar 16 Mar 15 Mar 14 Mar 13 Mar 12

12 mths 12 mths 12 mths 12 mths 12 mths

Profit/Loss Before Exceptional,

477.80 482.02 420.17 403.43 337.52
Extraordinary Items and Tax
Exceptional Items -25.68 -14.69 0.00 0.00 0.00
Profit/Loss Before Tax 452.13 467.33 420.17 403.43 337.52
Tax Expenses-Continued Operations
Current Tax 97.92 92.22 83.33 79.84 64.90
Less: MAT Credit Entitlement 90.20 44.57 83.33 50.29 21.35
Deferred Tax 74.97 73.09 89.45 69.33 62.98
Total Tax Expenses 82.69 120.73 89.45 98.87 106.53

54
Profit/Loss After Tax and
369.44 346.60 330.72 304.56 230.99
Before Extraordinary Items
Extraordinary Items 0.00 0.00 0.00 4.55 0.00
Profit/Loss from Continuing
369.44 346.60 330.72 309.11 230.99
Operations
Profit/Loss for The Period 369.44 346.60 330.72 309.11 230.99
Mar 16 Mar 15 Mar 14 Mar 13 Mar 12

12 mths 12 mths 12 mths 12 mths 12 mths

OTHER ADDITIONAL
INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 26.55 24.91 23.77 22.43 17.72
Diluted EPS (Rs.) 26.55 24.91 23.77 22.22 17.16
VALUE OF IMPORTED AND
INDIGENIOUS RAW MATERIALS
STORES, SPARES AND LOOSE
TOOLS
DIVIDEND AND DIVIDEND
PERCENTAGE
Equity Share Dividend 83.48 80.00 80.00 76.52 53.79
Tax on Dividend 16.90 16.38 13.60 13.00 8.73
Equity Dividend Rate (%) 120.00 115.00 115.00 110.00 80.00

55
BALANSE SHEET OF APOLLO HOSPITAL
Apollo Hospitals Enterprises
Standalone Balance Sheet ------------------- in Rs. Cr. -------------------
Mar 16 Mar 15 Mar 14 Mar 13 Mar 12

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 69.56 69.56 69.56 69.56 67.23
Total Share Capital 69.56 69.56 69.56 69.56 67.23
Reserves and Surplus 3,360.57 3,091.51 2,895.16 2,658.03 2,246.33
Total Reserves and Surplus 3,360.57 3,091.51 2,895.16 2,658.03 2,246.33
Money Received Against Share
0.00 0.00 0.00 0.00 38.71
Warrants
Total Shareholders’ Funds 3,430.13 3,161.07 2,964.73 2,727.60 2,352.27
NON-CURRENT LIABILITIES
Long Term Borrowings 1,948.95 1,460.80 1,005.24 878.78 421.67
Deferred Tax Liabilities [Net] 476.91 401.95 328.86 239.41 170.09
Other Long-Term Liabilities 0.26 0.15 2.76 3.77 4.78
Long Term Provisions 0.00 0.00 0.00 0.00 265.70
Total Non-Current Liabilities 2,426.12 1,862.90 1,336.86 1,121.95 862.23
CURRENT LIABILITIES
Short Term Borrowings 153.01 55.78 15.93 18.93 138.30
Trade Payables 401.28 320.10 248.72 176.34 170.94
Other Current Liabilities 374.71 289.68 158.72 203.76 157.27
Short Term Provisions 53.17 130.44 131.64 106.00 77.32
Total Current Liabilities 982.18 795.99 555.01 505.03 543.82
Total Capital and Liabilities 6,838.43 5,819.96 4,856.59 4,354.58 3,758.32
ASSETS

56
NON-CURRENT ASSETS
Tangible Assets 2,824.11 2,413.86 1,975.91 1,677.47 1,423.88
Intangible Assets 107.52 13.69 12.79 14.04 12.12
Capital Work-In-Progress 579.10 512.16 463.57 357.92 189.32
Intangible Assets Under
0.00 0.00 17.39 14.81 11.62
Development
Fixed Assets 3,510.72 2,939.70 2,469.66 2,064.24 1,636.94
Non-Current Investments 842.45 598.86 541.76 525.45 647.01
Long Term Loans and Advances 702.41 585.06 487.61 301.60 510.33
Total Non-Current Assets 5,055.58 4,123.63 3,499.03 2,891.29 2,794.29
CURRENT ASSETS
Current Investments 67.32 114.16 148.27 370.59 117.11
Inventories 422.15 332.50 264.97 205.39 182.71
Trade Receivables 615.11 549.55 468.45 426.61 353.77
Cash and Cash Equivalents 255.76 249.23 208.90 255.47 186.96
Short Term Loans and Advances 372.45 419.92 248.93 189.93 97.67
Other Current Assets 50.05 30.98 18.04 15.31 25.83
Total Current Assets 1,782.84 1,696.33 1,357.56 1,463.29 964.04
Total Assets 6,838.43 5,819.96 4,856.59 4,354.58 3,758.32
OTHER ADDITIONAL
INFORMATION
CONTINGENT LIABILITIES,
COMMITMENTS
Contingent Liabilities 2,188.89 1,424.79 1,266.72 1,216.72 1,468.14
CIF VALUE OF IMPORTS
Raw Materials 98.49 109.97 104.18 89.03 40.78
Stores, Spares and Loose Tools 7.36 5.47 6.28 6.32 2.17
EXPENDITURE IN FOREIGN
EXCHANGE
Expenditure in Foreign Currency 9.23 8.24 3.74 3.93 3.45

57
REMITTANCES IN FOREIGN
CURRENCIES FOR DIVIDENDS
Dividend Remittance in Foreign
0.44 0.49 0.48 0.37 0.36
Currency
EARNINGS IN FOREIGN EXCHANGE
FOB Value of Goods - - - - -
Other Earnings 97.39 92.76 53.43 31.21 21.85
BONUS DETAILS
Bonus Equity Share Capital - - - - -
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted
105.69 113.41 79.44 66.02 71.37
Market Value
Non-Current Investments
798.65 557.88 501.39 486.08 607.64
Unquoted Book Value
CURRENT INVESTMENTS
Current Investments Quoted
63.58 115.84 144.36 365.75 100.18
Market Value
Current Investments Unquoted
16.79 6.79 13.59 13.59 20.38
Book Value

58
 CHAPTER: 5
KEY LEARNING’S FROM THE COMPANY
AND RECOMMENDATIONS

5.1 PERFORMANCE ANALYSIS OF THE COMPANY

❖ Standalone 9MFY19 Performance

• Revenues grew 16% to Rs. 61,695 million compared to Rs. 53,196 million in
9MFY18.
• EBITDAR grew 22% to Rs. 9,450 million as against Rs. 7,771 million in 9MFY18.
• EBITDA grew 22% to Rs. 7,523 million as against Rs. 6,156 million in 9MFY18.
• PAT was at Rs. 2,261 million compared to Rs. 1,735 million in 9MFY18.
• Diluted EPS of Rs. 16.25 per share in 9MFY19 (not annualised).

❖ Standalone Q3FY19 Performance

• Revenues grew 17% to Rs. 21,690 million compared to Rs. 18,561 million in
Q3FY18.
• EBITDAR grew 21% to Rs. 3,337 million as against Rs. 2,758 million in Q3FY18.
• EBITDA grew 21% to Rs. 2,679 million as against Rs. 2,211 million in Q3FY18.
• PAT was at Rs. 869 million compared to Rs. 674 million in Q3FY18.
• Diluted EPS of Rs. 6.25 per share in Q3FY19 (not annualised).

❖ Consolidated 9MFY19 Performance (Unaudited Management Estimates)

• Revenues grew 16% to Rs. 70,960 million compared to Rs. 61,312 million in
9MFY18.
• EBITDAR grew 25% to Rs. 10,425 million as against Rs. 8,332 million in 9MFY18.
• EBITDA grew 29% to Rs. 7,810 million against Rs. 6,064 million in 9MFY18.
• PAT grew 62% to Rs. 1,516 million compared to Rs. 936 million in 9MFY18.
• Diluted EPS of Rs. 10.90 per share in 9MFY18 (not annualised).

❖ Consolidated Q3FY19 Performance (Unaudited Management Estimates)

59
 • Revenues grew 17% to Rs. 24,908 million compared to Rs. 21,347 million in
Q3FY18.
• EBITDAR grew 25% to Rs. 3,664 million as against Rs. 2,933 million in Q3FY18.
• EBITDA grew 28% to Rs. 2,768 million against Rs. 2,170 million in Q3FY18.
• PAT grew 25% to Rs. 547 million compared to Rs. 438 million in Q3FY18.
• Diluted EPS of Rs.3.93 per share in Q3FY19 (not annualised).

5.2 REASON FOR THE EXPANSION OF APOLLO HOSPITAL

Healthcare group Apollo Hospitals has plans to invest Rs 1,400 crore over the next couple of
years for expansion, a top company official said here on Monday.
Moreover, the company is all set to come up with the modern Proton therapy at
its Chennai facility for the treatment of cancer patients in near future.

"We have lined up an investment of Rs 1,400 crore over next couple of years and the
investment would be made in the opening of new hospitals and expansion of already existing
healthcare centres," Apollo Hospitals Chairman Pratap C Reddy told reporters here.

He was speaking at the inauguration of a super-speciality tertiary care hospital by the group at
Navi Mumbai.

"We are looking at having our own hospital at Guwahati in North-East and we have already
acquired land in Jaipur for the setting of a hospital in future," he said.

Talking about the forthcoming Proton therapy at its Chennai facility, he said, "work has
already begun on the setting up of the Proton therapy at the group's Chennai facility and we
hope that it would become operational over next one-and-half years' time."

"Currently this facility was available only in two countries like China and Japan and India
will become the third country to have this facility for treatment of cancer patients," Apollo
Hospital's managing director Sunita Reddy said.

"We are also looking at adding oncology facility at the group's already existing hospitals at
places like Vizag and Bhubaneshwar," she added.

60
5.3 COMMENT ON ORGANISATIONAL LEADERSHIP OF APOLLO HOSPITAL

Dr. Prathap C Reddy, the visionary Founder-Chairman of Apollo Hospitals is widely

recognized as the architect of modern Indian healthcare. He is best described as a
compassionate humanitarian, who has dedicated his life to bringing world-class healthcare
within the economic and geographic reach of millions. The institution that he envisioned and
built - Apollo Hospitals, steered a revolution and marked the birth of the private healthcare
industry in India

Apollo Hospitals opened its doors in 1983 and introduced international quality healthcare to
India, at a cost that was a fraction of comparable costs in the western world. This was
Apollo's first act of social responsibility and underscored the fact that the organization's
business model has an intrinsic social conscience.

Over the years, Dr. Reddy has carried the torch of healthcare to distant corners of India.
Always the visionary, he harnessed technology and insurance to take healthcare to the masses.
The pioneering success of telemedicine and innovative insurance in Anaconda, the world's
first V-SAT enabled village in remote Andhra Pradesh validates the concept of 'Healthcare for
All'.

Recognizing that telemedicine can help meet the increasing demand for universal access to
high quality healthcare, Apollo Hospitals established telemedicine centres across the world.
Dr. Reddy also envisioned the path breaking Apollo Reach Hospitals model, one that takes
high quality healthcare to semi urban and rural geographies. This blueprint has been taking
good health to the very heart of India.

61
5.4 MARKET SHARE/GROWTH RATE OF APOLLO HOSPITALS

Q3FY19 Standalone Revenues grew 17% to Rs. 21,690 million compared to Rs. 18,561
million in Q3FY18, aided by SAP growth of 18% and Healthcare services growth of 16%
YoY. HC services growth of 16% YoY was led by new hospitals which reported 25% YoY
Revenue growth while existing hospitals grew 14% YoY. EBITDA was at Rs. 2,679 million
in Q3FY19 as against Rs. 2,211 million in Q3FY18 a YoY growth of 21%. PAT grew by 29%
to Rs. 869 million in Q3FY19.

Apollo Hospitals growth momentum continued in this quarter. The third quarter has
traditionally been a low season due to festival holidays, however, this year, we have been able
to register a good performance, both in the hospitals and in the pharmacy division. The
performance is primarily driven by a healthy result from our Mature hospitals, which reported
revenue growth of 14%, and were able to significantly accelerate revenue growth vis-à-vis
volume growth. This performance is a reinforcement of our strategy for these hospitals, of
focusing on COEs, higher quality of case mix and value pricing. Mature hospitals EBITDA
margins have improved to 21.8% this quarter, well on the way to the 23% target over the next
few quarters.

This performance reinforces the internal resilience of our business model which is well
diversified across specialties, geographies and maturities. We still have significant headroom
for growth at current capacities. Of the total 7,200 + operating beds (excluding AHLL &
Managed beds) that we have group-wide, 14 hospitals with over 1809 operating beds are new
and increased utilizations and volumes in these will aid growth and further margin expansion.

62
NEW LAUNCHES, INITIATIVES AND PARTNERSHIPS

• The Apollo Proton Cancer Centre (APCC) was inaugurated on January 25, 2019 in
Chennai by the Hon’ble Vice President of India, Shri Venkaiah Naidu in the presence of
the Hon'ble Chief Minister of Tamil Nadu, Shri Edappadi K. Palaniswami and Dr. Prathap
C. Reddy, Founder and Chairman, Apollo Hospitals Group. Opening a new frontier in
cancer care, the 150-bed APCC is an integrated cancer hospital in Chennai providing
world-class 360o comprehensive cancer care. The APCC will offer patients advanced
multi-room proton therapy with cutting-edge pencil-beam scanning technology that
provides the highest degree of precision.

• Apollo Hospitals Enterprise announced its foray into Kerala by signing an Operations and
Management contract relating to a 250-bed super-specialty hospital in Angamaly, the
northernmost suburb of Kochi. As per the contract, the Adlux Group will serve as
infrastructure partners while Apollo Hospitals would be responsible for all the operations
and management of the hospital. Located close to Kochi International Airport, the Apollo
Adlux Hospital, scheduled to begin operations in four to six months, will provide world-
class health care services to people of all socio-economic strata in this region.

• Apollo Hospitals Navi Mumbai, launched an advanced 3-bed HEPA filtered Bone
Marrow Transplant (BMT) unit. The new unit, a standalone dedicated facility for bone
marrow transplantation, will bring International standards of cancer care to offer patients
from Navi Mumbai and surrounding areas an accessible facility for bone marrow
transplant.

• Apollo Hospitals, Madurai Division (Madurai, Trichy, Karur & Karaikudi) launched an
Advanced Integrated Comprehensive Liver Care Network which facilitates treatment of
liver diseases. At present, in Madurai Division Apollo has five hospitals - two hospitals in
Madurai, one in Trichy, one in Karaikudi and one in Karur. Linking these five hospitals
together, a Comprehensive Advanced Liver Care is being provided, enabling Apollo
Hospitals to further treat any form of liver disease, from simple jaundice to an early stage
of liver disease, requiring liver transplant.

• Apollo Hospitals, Kakinada installed a Neuro Navigation system, a first-of-its-kind in the

coastal districts of Andhra Pradesh, for better patient care. The hospital is now equipped

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 with the most advanced computer aided navigation system, which helps in conducting
brain tumor removals and spinal surgeries with more accurate and minimally invasive
techniques. This machine will help achieve optimal accuracy, minimal incision, lower
trauma and speedy recovery for the patients.

• Apollo Hospitals and Republic TV have together in a unique partnership for discussions
about the future of healthcare in India. Titiled the ‘Future of Health’, the series will delve
into contemporary issues of healthcare in the country including the provision of care,
accessibility, financing and also recommend solutions for the way forward.

• Apollo Hospitals in collaboration with Lions Club and Sri Lanka Scoliosis Awareness
Program organized a walkathon at Colombo, Sri Lanka. This is the 4th consecutive year
and this program has helped over 300 Children to avail Scoliosis Correction Surgery at
their State-of-The-Art Spine Unit.

CLINICAL EXCELLENCE HIGHLIGHTS

• Doctors at Indraprastha Apollo Hospitals gave a new lease of life to a 20-day-old baby
born with a rare heart defect. The baby was diagnosed with 'Transposition of Great
Arteries' which is a congenital heart defect. In addition, the child also had two big holes in
his heart along with a condition that include increased work of breathing and poor weight
gain. Considering the criticality of baby’s condition, an open heart surgical procedure was
performed on the child. The child recuperated enough to go home after 10-12 days post
the surgery.

• The department of Surgical Gastroenterology at Apollo Hospitals, Bhubaneswar

performed an extremely rare surgery on a middle aged lady in restoring her food pipe
which had sustained injury following accidental swallowing of her denture. The middle
aged lady had multiple issues and was therefore in a very critical state.
Esophagocoloplasty procedure was conducted and the patient had an absolutely smooth
postoperative recovery and was discharged.

• Apollo Gleneagles Hospitals, Kolkata performed a rare surgery of removing a tumour

from the windpipe of a 74-year-old man. It was a challenge for the doctors to operate on
the windpipe as the tricky surgery involved removing a portion of the windpipe and
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 reconstructing it, after removal of tumour. Post the surgery which lasted for six and a half
hours, the patient recuperated well after the surgery and was discharged.

• Indraprastha Apollo Hospitals, Delhi performed a bilateral cochlear implant using the
Nucleus 7 (N7) devices on an 8-month-old baby, the youngest to receive an implant in the
country. Diagnosed at birth with severe hearing loss in both his ears, the baby was bought
by his parents to the hospital in an effort to find a treatment to restore his hearing. N7
devices are the most recent cochlear implant devices in the world right now and have a
better chip and connectivity with digital devices. The implantation surgery on the baby
went well without any complications.

• Apollo hospitals, Kolkata performed a successful surgery on a man’s right hand which
was crushed by a machine that bends iron. The initial prognosis was that the damaged
hand might have to be amputated; however the doctors at Apollo Gleneagles Hospitals,
Kolkata saved his hand by successfully performing a complicated surgery. Six months
post-surgery the patient had started to write with his repaired hand.

• Apollo Specialty Hospitals, OMR performed a rare surgery on a patient whose brain tissue
was oozing out through a hole in the ear. An eight-hour long complicated surgery was
conducted following which the patient had a speedy, anesthesia free recovery and was
discharged a week post-surgery.

• Dr. A. Sreenivas Kumar, Senior Consultant Cardiologist and Director, Cardiology and
Clinical Research, Apollo Hospitals, Jubilee Hills Hyderabad, created history by treating
five critically ill patients from a valve disease using Transcatheter aortic valve
replacements (TAVR) in a single day, a feat performed first time in India.

5.5 SWOT ANALYSIS OF APOLLO HOSPITAL

➢ Strengths
✓ existing distribution and sales networks
✓ high profitability and revenue
✓ high growth rate
✓ monetary assistance provided

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➢ Weaknesses
✓ investments in research and development

➢ Opportunities
✓ new products and services

➢ Threats
✓ financial capacity

1. STRENGTH

Over the past three decades, Apollo Hospitals' transformative journey has forged a legacy of
excellence in Indian healthcare. One of Apollo's significant contributions has been the
adoption of clinical excellence as an industry standard. Alongside, its ethos rests on the pillars
of technological superiority, a warm patient - centric approach, affordable costs and an edge
in forward-looking research and academics.

Apollo Hospitals was the first to invest in the pre-requisites that led to international Quality
accreditation like the Joint Commission International and Intrapathway Apollo Hospitals was
the first hospital in India to be accredited with this gold standard in 2006.

An early adopter of technology, Apollo Hospitals was one among the first few in the world to
leverage technology to build integrated healthcare delivery models, which facilitate seamless
healthcare delivery through electronic medical records, hospital information systems and
telemedicine-based outreach initiatives. Another critical manifestation of widespread
technology has been the amazing advancement in medical equipment and Apollo has
repeatedly pioneered the introduction of such innovations in India. Soon the country will have
its very first Proton Beam Therapy centre at Apollo Cancer Hospitals.

2. WEEKNESS OF APOLLO HOSPITAL

Apollo Munich Health Insurance: It’s a joint venture between Apollo Hospitals and Munich
Health, part of Munich Re.
Aircel : Aircel group is an Indian mobile network operator headquartered in Gurgaon, that
provides wireless voice, messaging and data services in India. It is a joint venture between
Maxis Communications Berthed of Malaysia and Sindy Securities & Investments Private

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Limited, whose current shareholders are the Reddy family of Apollo Hospitals Group of
India, with Maxis Communications holding a majority stake of 74%.
Apollo Health Street Limited : It offers Business process outsourcing (BPO)and IT services
internationally, operating out of three countries - the United States, the United Kingdom, and
[four centres in] India (Hyderabad, New Delhi, Chennai and Coimbatore).
Apollo Pharmacies: It is the largest retail pharmacy chain in India with over 1000 retail
outlets in India. Apollo Pharmacies is moving towards [clarification needed] offering e-prescription
based services to the end user and the doctor.
Apollo Health & Lifestyle Limited: Apollo Health & Lifestyle Limited (AHLL) is engaged
in establishing a network of clinics in India and neighbouring countries.
Med Varsity Online Limited (MOL): Med Varsity Online Limited is promoted by Apollo
Hospitals and NIIT Ltd. Med Varsity has developed over 1500 hours of medical content that
is accessible to the medical community anytime and anywhere.
Apollo Telemedicine Enterprises Limited (ATEL): Apollo Telemedicine Enterprises
Limited has developed the 'Apollo Telemedicine Network' that allows the participant sites to
collaborate with institutions in the country and abroad and provides their clientele access to
better healthcare in areas not adequately served by the medical community.
Family Health Plan Limited (FHPL): The company deals in the healthcare insurance sector
and is the largest Third-Party Administrator (TPA) in Asia.
Equipment World: Equipment World sources and selects medical equipment, catalogues and
provides advice and services on technology, techno-commercial issues.
Keimed.com Limited: Keimed.com Limited is a unified national pharmaceutical
procurement and supply chain management company for a wide range of medical goods,
consumables, drugs, surgical, health and personal care products.

3. Apollo Hospital Opportunities

Values make us who we are, defining us not only as individuals, but also as a family. Apollo
has always been a family, working together, crossing hurdles together, and notching up
victories together. Our values hold us and unite us for a common purpose. It upholds what we
believe in, what we hold close to our hearts, and that is what makes Apollo one of the greatest
healthcare providers in the world.
Pioneering Attitude:
Stay ahead of the curve by constantly creating innovative solutions for the wellbeing of our
patients and society as a whole
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Proactive Involvement:
Always look for ways to add value in everything we do by going the extra mile
World Class Excellence:
Continuously strive for excellence in all spheres - be it clinical, financial, operational, and
service or people management, by bench marking our processes and procedures with best in
class models available
Trustworthy Spirit:
Continue to be an institution of trust and a beacon of hope to all patients by keeping their best
interests at heart and delivering on all our promises
Compassionate Care:
Touch and enhance lives of patients by practising Tender Loving Care to create better
experiences for our patients

4. THREATS OF APOLLO HOSPITALS

Chennai: Four to five million of the 20 million deaths from heart failure are reported in India
alone, causing doctors to fear that India may soon become the heart failure capital of the
world. 54 percent of deaths in Chennai are attributed to heart attacks and other cardiac-related
ailments. Doctors are therefore desperate to find a solution to bring down the burden.

With the development of treatment techniques, surgical devices, drugs and effective cardiac
transplantation methods, the scenario in dealing with patients has been changing. “Treatment
of heart diseases is a long journey that requires a team. It is no more the job of a cardiologist
alone. It requires efforts from both medical professionals like cardiologists, nephrologists and
endocrinologists, as well as from allied healthcare professionals like nurses, percussionists
and the like,” said Dr Sunder. T, senior cardiothoracic and heart-lung transplant surgeon,
Apollo Hospitals.

As a failing heart affects all organs — notably the lungs, kidneys and the liver — the need for
an interdisciplinary approach is essential, the doctors said. With the need to create awareness
on the importance of this form of treatment, the Indian Heart Failure Association, along with
Apollo Hospitals, is organising the third annual conference on heart failure titled ‘Heart
Failure 360 degrees.

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 CHAPTER: 6

FINDINGS
MILESTONES OF APOLLO HOSPITALS

Medical

6 8 25
6 centres in India on 8 JCIA accredited 25 NABH (National
global trial for drug- hospitals Accreditation Board for
eluting Hospitals) accredited hospitals
bio-resorb able stents.
Apollo is one of them

25 125 345
25 World Class Heart Countries Medical Value 345 liver transplantations at
Institutes Travel Apollo Chennai's Center for
Liver Disease

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 375 1500 750
375 liver transplants Apollo Health City has Reached over 750 Bone
performed by Apollo performed 1500 Cochlear Marrow Transplants
Hospitals, Chennai and implant surgery and
Delhi reached a new milestone in
the history of aiding
hearing impaired in
Andhra Pradesh

70
 800 1,000 1,500
First program to complete 1000 patients successfully Apollo Speciality Cancer
800 Liver transplants treated through exultant Hospital, Chennai successfully
Micro vascular free tissue completes 1500 CyberKnife
transfer and Aesthetic Radio Surgeries
surgeries

1500+ 1,500 7,000

Over 1500 solid organ Apollo Speciality Cancer 7000 Kidney Transplants
transplants were Hospital, Chennai performed
performed in a year. successfully completes
1500 CyberKnife Radio
Surgeries

10,000 10,000 1.25 Lakh

10,000 Neurosurgeries Completed over 10,000 1,25,000 Coronary
performed per year Joint Replacement Angioplasties done till 2013
Surgeries

1.50 Lakh 7.50 Lakh 1 million

Crossed over 1,50,000 7,50,000 major surgeries 1 Million minor surgical

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 Heart Surgeries with performed and counting procedures performed
incredible success rates

20 million
Performed over 20 Million
Preventive Health Checks
so far
42 million
Touched over 42 Million
lives and still counting

Technology

• Apollo Hospitals, Hyderabad launched the state-of-the-art Brain and Spine Suite.

• South-East Asia’s first Proton Therapy was launched by Apollo Hospitals.

• South-Asia’s first digital PET/CT scanner was introduced at Apollo Proton Cancer Centre,
Chennai.

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• Indraprastha Apollo Hospitals, Delhi first to install the PET-MR Suite in South Asia

• First hospital group to bring the 320 Slice CT- Angio scan system and the 64 Slice CT-
Angio scan system to India

• First hospital group in South-East Asia to introduce the 16 Slice PET-CT Scan

• Apollo Gleneagles Hospitals, Kolkata, introduced the country's most advanced "128 Slice
Ingenuity PET CT- Positron Emission Tomography"

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 CHAPTER: 7
CONCLUSION AND SUGESTTION

7.1 CONCLUSION

Apollo Hospitals Enterprise Limited is an Indian hospital chain based in Chennai, India. It
was founded by Dr Pratap C. Reddy in 1983 and has hospitals in
India, Bangladesh, Kuwait and Qatar. Several of the group's hospitals have been among the
first in India to receive international healthcare accreditation by America-based Joint
Commission International (JCI). The Sri Lankan branch of Apollo Hospitals was shut down in
mid-2014 and the building was branded as Lanka Hospitals.

The group has developed services in telemedicine, after starting a pilot project in 2000 in
Pratap Reddy's home village.

7.2 Suggestions

• Assigned supervisor should make a proper schedule for internees regarding their
movement in different departments.
• Employees must be properly trained.
• Managers should keep an eye on works of employees on daily basis.
• ABC Hospital should lower their prices for the services so that its perception may
be improved in general public.
• The difference between the behaviors of the contractual, permanent employees was
quite obvious to say that permanent employees should review their behavior at
work.
• Feedback and proper guidelines should be given to employees by their managers to
encourage them.

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 BIBLOGRAPHY

1. "Annual Report 2016" (PDF). Apollo Hospitals Enterprises. Retrieved 26

December 2016.

2. "Hospitals in Dhaka - Apollo Hospitals". Apollo Hospitals.

3. "Clinic Locator".

4. Accreditation for 3 Apollo Hospital branches, The Hindu, 10 May 2006 accessed
at [1]11 Nov 2006

5. Telemedicine puts AP village on health map, The Indian Express, 7 September 2005
accessed at "Archived copy". Archived from the original on 21 October 2006.
Retrieved 2006-11-11. 11 Nov 2006

6. "NHS to recruit Indian doctors to plug gaps in GP services". Daily Telegraph. 7

April 2016. Retrieved 8 April 2016

7. http://www.business-standard.com/article/pti-stories/dedicated-healthcar...

8. http://www.ptinews.com/news/8312887_Dedicated-healthcare-centres-for-eld...

9. WIKIPEDIA THE FREE ENCYCLOPEDIA.

10. Special reference to GOOGLE.

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