Invest Before You Harvest

Attractive Investment Opportunities in Health & Wellness

Dr Lal PathLabs 04 November 2012

The presentation framework

The Indian Healthcare Industry and the changing face of the Indian consumer Catch the implications seizing healthcare retail opportunities for tomorrows India today Dr Lal PathLabs The advantage of partnering with the Leader Return on Investment

The Indian Healthcare Industry and the changing face of the Indian consumer
An ~ USD 100 billion (Rs. 5,30,000 crore) industry - 2015
Diagnostics Segment ~ USD 5 billion (Rs. 26,500 cr.) 2015 Overall Wellness Sector ~ Rs. 49,000 cr. currently Double by 2015

FMHG the new FMCG Catalysts The 5As

The Indian Healthcare Industry and the changing face of the Indian consumer

Aspirations

Allied

Affordability

5A
Accessibility Awareness

The Indian Healthcare Industry and the changing face of the Indian consumer
Aspirations: The changing lifestyle syndrome Affordability: Rising income Awareness: Power of Media; Digitalization; Connected Consumer; Education Accessibility: Retail network & penetration by services Allied:
Indian Healthcare Industry 5.2% GDP in India today GDP grow further Government plans USD 46 billion (Rs. 2,43,800 crore) in next 5 years Medical Tourism Medical Bill in India is 1/10th its global counterpart

The Indian Healthcare Industry and the changing face of the Indian consumer
The Wellness Explosion Paradigm shifts
Prescriptive Preventive Illness Wellness Fast growing lifestyle disease segment Diabetes, CAD Treatment based on medical tests (70%)

B2B B2C

Catch the implications Seizing Healthcare Retail Opportunities for tomorrows India today

Growth in the next 10 years 25 39 years 40 64 years Above 64 years 13% 25% - <greatest spend capacity> 32%

Focus on all growth buckets Customization is key

Catch the implications Seizing Healthcare Retail Opportunities for tomorrows India today
Doubling literate youth 333 million (33.3 crore) 574 million (57.4 crore) (by 2020) Education Household Incomes Youth will use branded services to mark identity Explosion of Opportunity Smaller households Numerous households
5.00 (2008) 4.81 (2015) Creation of million new households every year --- 1st time buyers The Rise of Women Working --- Emancipation/Empowerment 2 income sources in a nuclear family

EDUCATION/ HEALTHCARE/ RETAIL/REAL ESTATE

Outlook for Healthcare and Wellness Industry Spectacular takeoff

Changing Face of Indian consumer + Market Size Govt. Role Demographic Dividend
Entrepreneurs/ Companies/Individuals need to Join hands with Leader Brands LEVERAGE OPPORTUNITY - PROVIDE :

Accessibility

Availability

Affordability

Awareness

Adaptive (Customize)

Narrow Retail Window of Opportunity - Join hands with a Leader to become one

Dr Lal PathLabs The Advantage of partnering with the Leader

Leading Diagnostic Chain
Over 125 Labs; Over 2000 centers Over 10 million (1 crore) customers Over 60 Years of Expertise We know India better

Expertise - Hub & Spoke Model 16 hours Customer Care Support National Helpline 3988-5050 Home Collection know-how and Infrastructure Highest Accreditations in the Industry CAP/NABL/ISO Core Competency in the sector:
Pathology > Cardiology > Radiology + Imaging > Clinical Trials

External Quality Assurance Programs CAP/AIIMS/ CDC Atlanta, Georgia (USA) Quality, Service, Innovation is a way of life

Dr Lal PathLabs The Advantage of partnering with the Leader

Recent Launch of Asias Largest Lab at Rohini: A Game Changer

The Supreme Court of Testing in India

Dr Lal PathLabs The Advantage of partnering with the Leader

Hi Tech : Quality means Accuracy Hi Speed: Fast turnaround time

Hi Spread: Hub and Spoke model

Hi Touch : Care - Building Lifetime customers

Dr Lal PathLabs The Advantage of partnering with the Leader

Digitalization :

E - xperience Convenience from your home

Online Booking Online Payment Online Viewing of Reports On Dot At Home Collection Reports on your Mobile

APPINESS: Building APPS for Customer Delight and Happiness

Dr Lal PathLabs Join hands with the Leader

The Narrow Opportunity To increase Footprint

125 Labs 200 Labs 2000 Centers 3000 Centers Tier II cities/ Tier III cities/ Other parts Open for various formats partnership arrangements Few Years

Dr Lal PathLabs Lets Talk

Dr Lal PathLabs Advantage 60 years of expertise & Trust Diagnostic Sector Most accredited Lab network Network Reach Customer base Expertise of Hub/Spoke Business Model Technology Leadership Marketing/Sales/Ops Support Customer Care 16 hours Back-end Support Most accurate testing When you join forces with a Leader, you become one What we look for in our potential franchisee partners? Entrepreneurship Credibility Passion to build business Capital Local Expertise

Return on Investment
(Hypothetical Projections) Investment: ~ Rs. 4 lacs Revenue (15 samples x 25 x Rs.500/ sample x 12): ~ Rs. 20 lacs/annum Margin (25% commission): ~ Rs. 5 lacs/annum Running Cost: ~ Rs. 3 lacs/annum Net Margin: ~ Rs. 2 lacs RoI: ~ 50%

Come, be a partner in progress!