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    For the complete report, get in touch with us at : info@netscribes.com Indian hospital market faces a critical crunch in the number of hospital beds in comparison to the demand it faces. The hospital market in India has strong growth potential that is characterized by continual possibility of growth. Persistent growth in population necessitates the growth in both public as well as private hospital facilities to cater to population of varied economic standards residing in the country. A gradual trend is being observed in terms of demand for quality healthcare service within the hospital market. This is not only because of changing nature of Indian patient population but also due to the booming medical tourism that India is currently catering to. As a result of these, the sector is attracting good amount of foreign investments or foreign hospital chains establishing business in the country. The Indian government is also undertaking numerous initiatives including tax incentives and budget allocations that would aid in investment inflow and betterment of the market. Indian entrepreneurs are bringing in innovation within the hospital business by revolutionizing the approach towards healthcare delivery. Initiatives are being taken to penetrate smaller cities and towns where the private sector was hesitant to penetrate even a few years back. Primary and secondary care is being offered through specialty clinics or smaller hospitals specializing in few key areas to reduce their cost of operation yet increase revenue by carrying out more number of the selected few procedures. On the other hand, mobile hospitals and telemedicine is being popularized to reach patient population in rural and urban slum areas for delivering immediate healthcare services.

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    Market Research Report : Hospital market in india 2013

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    For the complete report, get in touch with us at : info@netscribes.com Indian hospital market faces a critical crunch in the number of hospital beds in comparison to the demand it faces. The hospital market in India has strong growth potential that is characterized by continual possibility of growth. Persistent growth in population necessitates the growth in both public as well as private hospital facilities to cater to population of varied economic standards residing in the country. A gradual trend is being observed in terms of demand for quality healthcare service within the hospital market. This is not only because of changing nature of Indian patient population but also due to the booming medical tourism that India is currently catering to. As a result of these, the sector is attracting good amount of foreign investments or foreign hospital chains establishing business in the country. The Indian government is also undertaking numerous initiatives including tax incentives and budget allocations that would aid in investment inflow and betterment of the market. Indian entrepreneurs are bringing in innovation within the hospital business by revolutionizing the approach towards healthcare delivery. Initiatives are being taken to penetrate smaller cities and towns where the private sector was hesitant to penetrate even a few years back. Primary and secondary care is being offered through specialty clinics or smaller hospitals specializing in few key areas to reduce their cost of operation yet increase revenue by carrying out more number of the selected few procedures. On the other hand, mobile hospitals and telemedicine is being popularized to reach patient population in rural and urban slum areas for delivering immediate healthcare services.

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    96 views24 pages

    Market Research Report: Hospital Market in India 2013

    Uploaded by

    Netscribes, Inc.
    For the complete report, get in touch with us at : info@netscribes.com Indian hospital market faces a critical crunch in the number of hospital beds in comparison to the demand it faces. The hospital market in India has strong growth potential that is characterized by continual possibility of growth. Persistent growth in population necessitates the growth in both public as well as private hospital facilities to cater to population of varied economic standards residing in the country. A gradual trend is being observed in terms of demand for quality healthcare service within the hospital market. This is not only because of changing nature of Indian patient population but also due to the booming medical tourism that India is currently catering to. As a result of these, the sector is attracting good amount of foreign investments or foreign hospital chains establishing business in the country. The Indian government is also undertaking numerous initiatives including tax incentives and budget allocations that would aid in investment inflow and betterment of the market. Indian entrepreneurs are bringing in innovation within the hospital business by revolutionizing the approach towards healthcare delivery. Initiatives are being taken to penetrate smaller cities and towns where the private sector was hesitant to penetrate even a few years back. Primary and secondary care is being offered through specialty clinics or smaller hospitals specializing in few key areas to reduce their cost of operation yet increase revenue by carrying out more number of the selected few procedures. On the other hand, mobile hospitals and telemedicine is being popularized to reach patient population in rural and urban slum areas for delivering immediate healthcare services.

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    HospitalMarketinIndia

    July2013

    ExecutiveSummary
    Market Overview
    ThehospitalmarketinIndiawasvaluedatINRx2 tnin20 andisexpectedtoreachINRx5 tnby 20 ThesectorisdividedprimarilyintopublicandprivatealongwithNGOoperatedhospitals Constantlyrisingpopulationresultsinperennialshortageofhospitalbeds

    Drivers:

    Challenges:
    ShortageofMedicalProfessionals LackofInvestmentinITInfrastructure ShortageofFDIInflowinIndian Hospitals

    Drivers& Challenges

    ShortageinNumberofHospitalBeds IncreasingLifestyleDiseases SurgeinMedicalTourism GovernmentInitiativesPropelling Investment GrowingTargetHospitalizationPopulation Group GrowingHealthInsuranceMarket RisingDisposableIncome SpecialtyClinics GlocalHealthcareSystems

    Key yTrends

    HospitalMobileApplications HospitalInformationCentre KeyPlayers

    LuxuryOfferings DiversifiedBusinessApproach

    Competitive Landscape

    ApolloHospitalsEnterpriseLtd. FortisHealthcare(India)Ltd. ColumbiaAsiaHospitalPvt. Ltd. ManipalHealthEnterprisesPvt. Ltd.

    CareHospitalsPvt.Ltd. MaxHealthcareInstitute Ltd.


    2

    HOSPITALMARKETININDIA2013.PPT

    EconomicIndicators IndianHealthcareScenario Introduction MarketOverview Drivers&Challenges ITAdoption RoleofGovernment KeyTrends KeyInitiatives CompetitiveLandscape TradeFairs&Events RecentTransactions Strategic StrategicInsights Appendix
    HOSPITALMARKETININDIA2013.PPT

    EconomicIndicators(1/3)
    INRtn 15 14 13 12 11 10 Q1 Q2 20 d1 c1 b1 a1 d2 c2 b2 a2

    SAMPLE
    d3 c3 3 b3 a3 d4 c4 b4 a4 Q3 20 Q4
    N.B.:NewSeriesBase:200405

    GrossDomesticProductAtFactorCost(AtConstantPrices):Quarterly

    20

    20

    InflationRate:Monthly y
    %
    1.0 08 0.8 0.6 0.4 0.2 0.0

    Nov20 Dec20

    Dec20 Jan20

    Jan20 Feb20

    Feb20 Mar20

    Mar20 Apr20 4

    HOSPITALMARKETININDIA2013.PPT

    HealthcaresysteminIndiarequiresalargerpublicoutlay duetohugepopulationbase
    HealthcareIndustryOverview HealthcareSector MarketSize&Growth
    A% a b c d f e INRbn AccordingtoWorldHealthStatistics2011Report,India, 10,000 healthcarecomprisedofr%ofIndiasGDPin20 PublicandprivateexpenditureonhealthaspercentageofGDP wasr1%andr2%respectively
    8 000 8,000 6,000

    Favorabledemographics,increaseinawarenesslevels 4,000 andbettermedicalcarearesomefactorsthataredriving 2,000 0 healthcaresectorinIndia 2012 2013e 2014e 2015e 2016e 2017e Hospitalformsthelargestsegmentofoverallhealthcare marketfollowedbypharmaceutical,medicaldevices, HealthcareMarketSegmentation 20 healthinsuranceanddiagnostics Gradual G d lpenetration t ti of fh health lthi insurancei isstepping t i up f% affordabilityofhealthservicesthroughincreaseddemand forpreventiveandcurativehealthcareservices d% e% a% Superiorqualityhealthcarecoupledwithlowtreatment c% costincomparisontoothercountriesisbenefitingIndian medicaltourism,therebysteeringforthIndianhealthcare b% market
    TreatmentformajorsurgeriesinIndiacostsapproximatelym% ofthatindevelopedcountries A B C D E F

    HOSPITALMARKETININDIA2013.PPT

    FDIInflowinIndianHealthcareSegments

    SAMPLE
    INRm1 bn

    SeveralhealthcaresegmentsinIndia haveearnedgoodvolumeofFDIovera12 yearsspanbetween20 to20

    Hospitalanddiagnosticcenters

    Medicalandsurgicalappliances

    INRm2 bn

    Drugsandpharmaceuticalssector

    INRm3 bn

    HOSPITALMARKETININDIA2013.PPT

    Hospitalscanbeclassifiedongroundsofownershipand clinicaloperation
    ClassificationofHospitals
    OwnershipBasis ClinicalBasis Hospitalsstaffedbyatleasttwomedical officersthatprovidesinpatient accommodationandmedicalcareformore thanonecategoryofmedicaldiscipline Providesmedicalattentionforonediscipline andisadministrativelyattachedtoageneral hospital Hospitalsforthecareofpersonssufferingfrom i f ti diseases infectious di StateandCentralgovernmenthospitals establishedintheirstatecapitals Ahospitaltowhichacollegeisattached formedical/dentaleducation Locatedinruralareaspermanentlystaffedby atleastonephysicianthatprovidesinpatient accommodationandmedicalcareformore thanonecategoryofmedicaldiscipline

    Public Hospitals

    RunbyCentralGovernment, StateGovernmentandlocalbodies

    General Hospitals

    Private Hospitals

    RunbyCentralGovernment, StateGovernmentandlocalbodies

    Specialized Hospitals Isolation H it l Hospitals Tertiary Hospitals Teaching Hospitals

    Corporate Hospitals p

    Publiclimitedcompaniesformedunder CompaniesActruncommerciallyandislikely t operate to t chain h i of fhospitals h it l

    Voluntary Hospitals

    Functionswithpublicorprivatefundsona noncommercialbasis

    Rural Hospitals

    HOSPITALMARKETININDIA2013.PPT

    HospitalsisthemostcrucialaspectofIndianhealthcare sector,constantlydevelopingtoprovideworldclassservice
    MarketOverview(1/2)
    HospitalsareamajorcomponentoftheIndian Healthcareindustryformingmorethana%ofthetotal healthcaresectors sector srevenue Hospitalsectorisdividedintopublicandprivate
    Thereare~pprivatehospitalsand~qpublichospitalsacross thecountry

    MarketSizeandGrowth PrivateHospitals
    INRtn 6 5 +X% 4 3 2 1 0 20 20 20e 20e 20e 20e 20e x1 x2 x4 x3 x5 x6 x7

    PotentialgrowthprospectofIndianhealthcareis attractingmanyforeigncompanieswhoarewillingto investorestablishbaseinIndia


    ThereisagrowingtrendtotapthehighpotentialtierIIand tierIIIcities Atrendofgrowthinspecialtyandmultispecialtyhospitals inthecountryisalsoobserved

    PrimaryHealthcare facilitiesactsasthebackboneofpublichealthcaresystemestablishedand operatedprimarilybygovernmentinstitutionswithlowinvolvementofprivate Basedonapproachofuniversality,comprehensivenessandequityinhealth,thecountrylags behindintermsofstandardizationofprocesses,qualityandservice

    KeyHealthcare DeliveryFormats

    SecondaryCareHospitals thatmayormaynotspecializeintreatmentofaspecificailmentbut offersmostessentialservices Inmostcasesitcatersto85%to90%ofmedicalrequirements Thesegmentconsistsofdistrictandallotherprivatelyrungeneralprivatehospitals TertiaryCareHospitals arespecializedwhichofferspecificfacilitiesandemployhighly specializedpractitionerswhoalsoofferspecializedconsultativecare Serviceisprovidedbyprivate,regionalorcentrallevelinstitutionssuchasmultispecialtyand singlespecialtyhospitals
    HOSPITALMARKETININDIA2013.PPT

    Drivers&Challenges Summary
    Drivers
    ShortageinNumberofHospitalBeds IncreasingLifestyleDiseases SurgeinMedicalTourism GovernmentInitiativesPropelling Investment Growing G i Target T H Hospitalization i li i PopulationGroup GrowingHealthInsuranceMarket RisingDisposableIncome

    Challenges
    ShortageofMedicalProfessionals LackofInvestmentinITInfrastructure ShortageofFDIInflowinIndian Hospitals

    HOSPITALMARKETININDIA2013.PPT

    Hugedemandsupplygapforhospitalbedsisthepotent drivingelementofthehospitalmarket
    ShortageinNumberofHospitalBeds
    Indiafacesanacuteshortageinnumberofhospitalbedsincomparisontopopulationlevelof thecountry
    AccordingtoWorldHealthStatistics,Indiaispositionedamongthelowestcountriesonaglobal perspectivewithwhichisfarbelowtheglobalaverageofsbedspertpopulation AccordingtoNationalHealthProfile20,Indiahasapublicsectoravailabilityofonebedperfpopulation inggovernmenthospitalswhichisonlyhbedsperipopulation

    Impact

    Publicsectoraswellasp privatesectorneedstop pullup pthenumberofhospitals p andother healthcareinstitutionsaspopulationgrowthwillraisedemandformorehospitalbeds


    By20,populationsizewillbedmnthatwillnecessitateemnbedstoachieveHighLevelExpertGroup (HLEG)targetofibedsperjpopulation

    HospitalBedsPer1,000Population 2010
    Japan USA UK Russia SriLanka China Brazil Thailand India m n o p q r s t u
    DevelopedNations EmergingNations

    RuralUrbanHospitalBedRatioComparison
    RuralIndiaPublic HospitalBedRatio s RuralIndiais characterizedbypublic hospitalswhileUrban Indiabyprivatehospitals Private Hospital BedRatio u CentralIndia SouthernIndia UrbanIndia

    HOSPITALMARKETININDIA2013.PPT

    10

    Lackofforeigninvestmentsactsasanimpedimenttothe hospitalmarketofthecountry
    ShortageofFDIInflowinIndianHospitals
    IndianhospitalsislaggingbehindinacquiringsufficientshareofFDI
    FDIequityinflowinhospitalsectorisfarlowevenwhencomparedtodrugsandpharmaceuticalsectorin India FDIinvestmentinhospital&diagnosticcentersranksard intermsofamountofFDIequityinflowsinperiod betweenApr20 toJan20

    Impact

    Therearebothinternalandexternalissuesthatdecelerateforeigninvestmentsinourcountry

    ImbalanceinFDIInvestmentWithinHealthcareSector
    Hospital&DiagnosticCenters INRnbn~b%

    InternalIssues
    Highcostinvolvementinhospital establishment Depreciationofmedicalequipments Feasibilityissueinupgradinghealthcare equipments

    Drugs&Pharmaceuticals INRmbn~a%

    ExternalIssues
    Indianprivatehospitalsunabletoestablish hospitalsoverseas Requirementofindepthlocalized knowledge g ofhostcountry y Indiangovernmentfailstoprovideaclarity inpoliciesonoverallhealthcaresector
    HOSPITALMARKETININDIA2013.PPT

    11

    ITAdoptioninHospitalisprogressingslowwithonlyhigh endcorporatehospitals

    SAMPLE
    ITSpendingonHealthcare 18.3% s r t q

    INRbn
    40 35 30 25 20 15 10 5 0

    20 m%

    20e

    20e

    20e

    20e

    20e

    n% ITAdoptioninHospitals ITAdoptioninOtherHealthcareSegments

    Businessstreamliningandpatientadministration systemsistheprimemotiveforITadoptionin hospitals Hospitals H it l canprovide id better b tt careand dmanagecosts t betterinternallyandpatientscanlookforlower healthcarecosts ITleveragingandsharingdataoncloudhelpsinsaving i f t t and infrastructure dmanpowerto t agreat textent t t

    HOSPITALMARKETININDIA2013.PPT

    12

    RoleofGovernment:Summary

    SAMPLE
    BudgetaryAllocation Role of Government

    FinancialIncentives

    PublicPrivate Partnerships (PPPs)

    HOSPITALMARKETININDIA2013.PPT

    13

    KeyTrends

    SAMPLE
    Specialty Clinics DiversifiedBusiness Approach GlocalHealthcare Systems

    Key Trends
    Luxury Offerings Hospital InformationCentre HospitalMobile Applications

    HOSPITALMARKETININDIA2013.PPT

    14

    KeyInitiatives Summary

    SAMPLE
    HealthCities

    Key Initiatives
    Telemedicine MobileHospitals

    HOSPITALMARKETININDIA2013.PPT

    15

    HealthCitiesaregraduallybeingpopularizedtocater mostlytomedicaltourists
    HealthCitiesprimarilyincludesuperspecialtyhospitalattachedtoamedicalcollege,residential areawithinhousehighenddiagnosticcenters,commercialzonesandothercommon infrastructure HealthCitiescatertolargerpopulationsbyofferingadditionalfacilitiessuchashotels,recreational facilitiessuchasspa,gymandevengolfcourses TheyarealsoexpectedtolayagreateremphasisoneducationandR&D NarayanaHrudayalaya
    AsonMay20,thegroupaimstobuildsbedhealth citiesthatwilloffermedicalcarefacilitiesinheart, heart kidneyandcancer OnecityeachisplannedinJaipurandWestBengal, whiletwoshallcomeupontheoutskirtsofKolkata AsonDec20,thegroupisinplanstoinitiatea centreinLucknow,UPwithabedcapacityofmn beds

    H l hCi Health Cities i

    OdishaStateGovernment
    AsonJul20,thestategovernmentisplanningto setupanintegratedhealthcityontheoutskirtsof Bhubaneshwar Conceptnoteoftheprojecthasbeenpreparedby IndustrialInfrastructureDevelopmentCorporationof Odisha Projectisaimedatmakingthestateacomplete healthdestinationandpromotemedicaltourism Thegovernmentwouldpromotetheprojecton publicprivatepartnershipwithoneortwomega healthcarepromotersasanchorsoftheproposedcity

    Q QRG GEnterprises te p sesa announced ou cedits tsp plan a of o penetrating pe et at ghealthcare ea t ca eseg segment e twith t hospital osp ta c chain a inNCR C a along o gwith t Ludhiana, ud a a,Agra g aa and d Ja Jaipur pu as onJun20 ThegroupplanstosetupapbeddedsuperspecialtyfacilityinFaridabadthatisexpectedtobecommissionedinSep20 with an investmentofINRdbnthatwouldbenamedQRGHealthCity
    HOSPITALMARKETININDIA2013.PPT

    16

    CompetitiveBenchmarking(2/5)
    KeyRatiosofTop3Companies OperationalBasis(FY20)(1/3)
    %
    40 30 20 10 0

    GrossMargin a1

    OperatingMargin

    NetMargin

    a2 b1 c1 b2 c2 C

    b3

    c3

    Arecordedgrossmarginofa1%,higherthanBwhichrecordedgrossmarginofa2% Arecordedanoperatingmarginofb1%,higherthanbothBandCthatrecordedanoperatingmarginofb2%andb3% respectively Arecordedanetmarginofc1,higherthanbothBandCthatrecordednetmarginofc2andc3respectively

    HOSPITALMARKETININDIA2013.PPT

    17

    MajorPublicCompanies Summary
    NetProfit (INRmn)
    500,000,000 400,000,000 300,000,000 200,000,000 100 000 000 100,000,000 0 100,000,000 200,000,000 300,000,000 400,000,000 500,000,000 600,000,000 700,000,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000

    Sizeofbubblerepresents MarketCapitalizationinINRmn

    Revenue (INRmn)

    HOSPITALMARKETININDIA2013.PPT

    18

    Private:DomesticCompany PlayerA(1/5)
    CompanyInformation
    CorporateAddress TelNo. Website YearofIncorporation xx xx xx xx Delhi

    OfficesandCentres India

    ProductsandServices
    Category SportsGoods FitnessEquipment Products/Services xx xx

    HeadOffice

    KeyPeople
    N Name D i ti Designation

    EquipmentSupplier

    xx

    Others

    xx

    HOSPITALMARKETININDIA2013.PPT

    19

    Private:DomesticCompany PlayerA(2/5)
    ShareholdersoftheCompanyasonxx/xx/20
    Name No.ofSharesheld

    OwnershipStructure
    Directorsorrelativesofdirectors
    100 0% 100.0% 100 0% 100.0% 100 0% 100.0%

    Total

    20

    20

    20

    OwnershipstructurecorrespondstoDateofAGM:xx/xx/20, xx/xx/20 andxx/xx/20


    HOSPITALMARKETININDIA2013.PPT

    20

    Private:DomesticCompany PlayerA(3/5)
    Financial i i lS Snapshot h
    TotalIncome INRmn m NetProfit/Loss n INRmn

    K Ratios Key i
    Particulars yoychange (20 )
    N.A. N.A. N.A. 1.47 0.00 0.00 0.00 0.00

    20

    20

    20

    20

    ProfitabilityRatios
    OperatingMargin NetMargin ProfitBeforeTaxMargin ReturnonEquity ReturnonCapitalEmployed ReturnonWorkingCapital ReturnonAssets ReturnonFixedAssets
    N.A. N.A. N.A. 5.36% 0.00% 0.00% 0.00% 0.00% N.A. N.A. N.A. 3.89% 0.00% 0.00% 0.00% 0.00% N.A. N.A. N.A. 0.00% 0.00% 0.00% 0.00% 0.00% N.A. N.A. N.A. 0.00% 0.00% 0.00% 0.00% 0.00%

    0 20 20

    CostRatios
    Operatingcosts(%ofSales) Administrationcosts(%of Sales) Interestcosts(%ofSales)
    N.A. N.A. NA N.A. N.A. N.A. NA N.A. N.A. N.A. NA N.A. N.A. N.A. NA N.A. N.A. N.A. NA N.A.

    FinancialSummary
    CompanyearnedanetprofitofINRmunitsinFY20,as comparedtonetprofitofINRnunitsinFY20 ItreportedtotalincomeofINRpunitsinFY20, registeringanincreaseoftpercentfromFY20 Thecompanyreportedadebttoequityratioofx percentagepointsinFY20,anincreaseofypercentover FY20

    LiquidityRatios
    CurrentRatio CashRatio
    10.83% 35.86% 1.76 0.16 1.97 0.24 1.71 0.20 2.07 0.32

    LeverageRatios
    DebttoEquityRatio DebttoCapitalRatio InterestCoverageRatio
    14.21% 6.57% N.A. 1.16 0.54 N.A. 1.02 0.50 N.A. 0.50 0.33 N.A. 0.50 0.34 N.A.

    EfficiencyRatios
    FixedAssetTurnover AssetTurnover CurrentAssetTurnover WorkingCapitalTurnover CapitalEmployedTurnover
    N.A. N.A. N.A. N.A. N.A. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

    Improved

    Decline

    HOSPITALMARKETININDIA2013.PPT

    21

    Private:DomesticCompany PlayerA(4/5)
    BusinessHighlights
    Description Overview Facilities
    xx

    News

    xx

    HOSPITALMARKETININDIA2013.PPT

    22

    Public:DomesticCompany SWOTAnalysis PlayerA(5/5)

    XX XX

    S O
    XX

    W T
    XX

    HOSPITALMARKETININDIA2013.PPT

    23

    Thankyoufortheattention
    HospitalMarket IndiareportispartofResearchonIndiasHealthcareIndustrySeries. Foranyqueriesorcustomizedresearchrequirements,contactusat:
    Phone: Ph EMail: +91 912240987600 info@netscribes.com

    Followuson:

    AboutNetscribes,Inc. Netscribes, ,Inc.isaknowledge g consulting gandsolutionsf firmwithclienteleacrosstheglobe. g Thecompanys p y expertise p spans p areasof f investment&businessresearch,business&corporateintelligence,contentmanagementservices,andknowledgesoftwareservices. Atits coreliesatruevaluepropositionthatdrawsuponavastknowledgebase.Netscribes,Inc.isaonestopshopdesignedtofulfil clients profitabilityandgrowthobjectives. Disclaimer:Thisreportispublishedforgeneralinformationonly only.Althoughhighstandardshavebeenusedinthepreparation preparation,Netscribes Netscribes is notresponsibleforanylossordamagearisingfromuseofthisdocument.ThisdocumentisthesolepropertyofNetscribesandprior permissionisrequiredforguidelinesonreproduction.
    HOSPITALMARKETININDIA2013.PPT

    24

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