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Group Members

• Prashant
• Rohan
• Prasad
• Prabhat
• Prajwal
• Kushal
• Datta
• Mahesh
• Banti Raja
• Sandeep. P
•Hospitality Industry
Our Mission

“ We envision to provide clean, convenient


quality accommodation with friendly service
at affordable price to exceed customer’s
expectation and thereby ensuring financial
success and growth opportunities for the
company and its shareholders”
Business Idea
• High-end medical treatment facilities in India
are scarce and concentrated only in selective
cities.
• Figures confirm the fact that outstation patients
account for 65 to 70 percent of the occupancy.
• Affordable lodging and dinning near the
hospitals is the prima concern for these
patients and their relatives/visitors.
Concept of ‘Aashray’
- Is the type of dharmshala or hotel
or may be the lodge situated near
the hospitals.
- It will ensure the cleanliness and
hygiene of a hotel but will work
on a very small number of
employees.
- Aggressive cost cutting practices
shall ensure profitability.
---- Location of Aashray, type of rooms, number of rooms and rentals
charged will depend on the following factors-
 QUANTITATIVE INFORMATION:
• No. beds in the hospital The higher the
• Occupancy rate of the hospital better
• Percentage of outstation patients
• F.S.I in the area
• Cost of land near hospital The lower the
• Cost of construction in the city better

 
Porter’s five forces analysis
• High initial investment and first
mover advantage ensures high
entry barriers.
• Threat of substitutes is low.
• Bargaining power of supplier and
customers is low.
• Exit barriers are very low as fixed
investments (land and building)
are easy to recover.
Swot Analysis
Strengths Weakness
First mover advantage. Differentiation is low, easy to
Stable returns. imitate.
Exit barriers are low. Availability of required land.
Few growth avenues.
Entry barriers are low.
Opportunities Threats
Market size. Unorganized players.
Tie ups with hospitals in Hospitals may venture into
metros. this field.
Franchise Demand is derived from
hospitals.
Marketing & Sales
• Tie-up with NGOs /social workers
• Branding & Awareness:
- tie ups with hospitals (in metros), and franchises
if possible
- Occupancy in Aashray’s cannot be expected to
be very high in the initial phase of the launch. As the
service is new and in its introductory phase,
awareness will definitely add to the customers base.
Financial Planning & Financing Needs
• Revenue:
- Revenue will be mainly contributed by the rentals of the
rooms.
• Costs:
 Fixed costs included:
• Administrative and general expenses (a small portion is variable)
• Property taxes
• Insurance
• Payroll
 Semi-fixed expenses include:
• Energy costs
• Operation and maintenance expenses
Business Risks
Competition:
• The idea is simple and easy to initiate.
competition can be from the following-:
---- Big players may enter the fray.
---- Competition from unorganized and
domestic players (Dharmashala’s, paying
guest services and rented flats) may intensify.
---- Few hospitals may find it profitable to start
their own accommodation facilities
Demand:
• Competitions may results in price reduction and
fall in occupancy.
Construction:
• Rise in cost of raw materials (overshooting of
budgeted cost).
• Delay in construction due to various factors like
labor strike force, major change in government
policies, and irregularly in supply of Raw material.
Measure To Counter Risks
• Judiciously identify lucrative locations and try to
leverage on first mover advantage. Thus
discouraging the big players to enter competition.

• Create awareness about the brand and advertise


on few attributes like low cost with hygiene
environment, tie ups with hospitals will help in
countering the competition from unorganized
players.
• Valve added services like-emergency bus
service, air coolers and early booking discount
etc. will help in negating competition and
ensure occupancy.

• One way to counter the risks in construction


(monetary and time delay)is to insure the
complete process.
Actuals
Relative
S.NO Hospitals Type
Treatment
Cost
Multi-
1 Apollo Hospital, High
specialty
Hyderabad
Super-
2 Narayan Hrudyalaya, Moderate
Specialty
Bangalore
Medical
3 IGIMS, Patna High
Center
Medical
4 RIMS, Ranchi Moderate
Center
Medical
5 Govt.Med.Hosp, Low
Center
Nagpur
We have divided the distribution of rooms for the
above mentioned hospitals in the following way
depending on the qualitative factors:
Apollo Naryana IGIMS RIMS GMT

A(Beds 20% 20% 65%


only) 30% 50%
B(toilets 35% 40% 25%
attached) 45% 30%

C(Toilet 45% 40% 10%


and 25% 20%
kitchen)
The total no. of rooms to be built is taken as 50% of target
customers.

Target Customer = Total no. of beds in hosp. X Avg.


Occupancy of Hosp. X Avg. no. of outstation patients

The final figures come out to be:


Apollo Naryana IGIMS RIMS GMH
A 17 21 64 105 207
B 30 43 96 63 80
C 38 43 53 42 32
Total 85 107 213 210 319
Now the total floor space required to
build A,B & C types of rooms are:

Room Type Floor space in sq feet

A 125

B 150

C 175
The total capital required to build these five Aashrays
depends on:

•Cost of land near the hospital


•Floor Space Index (F.S.I)
•Cost of Construction in the city
•Total Floor Space Required

Actual figures of the above (as confirmed from real


estate agents in respective cities)
Come out as:
Hospita No. of Cost of F.S.I Total Cost of Total
l Beds land Floor constru cost
(sq.feet Space ction in (in lacs)
) require city(sq.
d feet)
Apollo 550 1000 2.25 18992 500 155
Naryan 500 1550 2 15671 500 190
a
IGIMS 1000 750 2.5 31343 450 235
RIMS 990 700 2.5 28400. 450 207
625
GMH 1500 900 2.5 39046. 450 316
875
Organizational Roadmap
Phase 1:
• Shortlist locations for Aashray.
• Identify 15-25 hospitals for launch of Aashray
over a period over three to four years.(Identify
hospitals on the basis of quantitative and
qualitative information as described above).
• Depending upon the capital available choose
the best property acquisition mode and build
Aashray.
• Spread awareness (through NGOs, social workers
and local television advertising)and try to establish
brand name.

Phase 2:
• This is the expansion phase. Using flows from
existing Aashrays get into newer locations.
• Having achieved learning curve; explore the
possibility of venturing into metros.
• Possibility of building Aashrays in areas located centrally
between big hospitals in the metros to carter to all of
them simultaneously.
• Explore the possibility of catering to ‘medical tourists’.
• Keep the options for franchising open.

Phase 3:
• The industry is in maturity phase.
• Choose between milking the cash cows and venturing into
new avenues.
• Learning curve may help in venturing into
following-
 Identifying educational centers without
hostels and providing dormitory for students.
 Working women hostel.
 Residential facility for BPO employees.
THANK U

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