Presented By:

Akshay S. Jalihal (Roll No. 06)

Ashwini Dhage (Roll No. 13)
Priyanka Selukar(Roll No. 37)

Apollo Hospitals Enterprise Limited (AHEL)

Apollo Hospitals Enterprise Limited (AHEL) is a leading

private sector healthcare provider in Asia
It was incorporated as a Public Limited Company in the
year 1979
AHEL owns and operates a network of leading primary,
secondary and tertiary hospitals and clinics across India
It consists of :

Apollo
Apollo
Apollo
Apollo
Apollo
Apollo
Apollo

Group of Hospitals
Global Projects Consultancy
Health and Lifestyle Limited
Pharmacy
Hospitals Education and Research Foundation
Insurance Company Limited
Reach Hospitals

The Apollo Group of Hospitals

Capacity
49 hospitals with total bed capacity of 7,946 beds as on June 30,
2012
36 owned hospitals including JVs/ Subsidiaries and associates
with 5,908 beds and 13 Managed hospitals with 2,038 beds
Of the 5,908 owned beds, 5,218 beds were operational and had
an occupancy of 74%
The total number of pharmacies as on June 30, 2012 was 1,357
Financial Performance
Q1FY13 Consolidated Revenues of Rs. 8,813 million (up 21.8%
yoy)
Q1FY13 Consolidated EBITDA of Rs. 1,480 million (up 24.0%
yoy)

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

Porter's Five Forces Analysis

The threat of new entry is quite high: if anyone looks as if
theyre making a sustained profit, new competitors can
come into the industry easily, reducing profits
Ex.- Fortis , Max, Escort , WOCKHARDT and DUNCANS
GLENEAGLES INTERNATIONAL
Competitive rivalry is extremely high: if someone raises
prices, they will be quickly undercut. Intense competition
puts strong downward pressure on prices
Buyer Power is strong, again implying strong downward
pressure on prices
There is some threat of substitution.
Ex Telemedicine or shifting to other medicine like Ayurveda
or natural care
Unless it is difficult to find some way of changing this
situation, this looks like a very tough

SWOT Analysis

Opportunities
India is emerging as a major player in this industry, because of its
high population
As per the IRDA(Indian Regulatory and Development Authority),
only 10 percent of the market potential has been tapped till date
and market studies indicate a 35 percent growth in the coming
years
Today, people are spending more on healthcare and preferring
private services to government ones
Hospitals in India are running at 80-90% occupancy
Threats
Medical equipment accounts for 40-45% of the total expenditure in
hospitals
The migration of skilled technicians and nursing personnel to
developed countries
There could be a shortfall of over 450,000 doctors in the year 2012

SWOT Analysis Contd..

Strengths
Seamless delivery of services at every level of care primary,
secondary and tertiary
4 JCI accreditations across all specialties, the first in the country
to do so
Quality programmers are registered by the Indian Council of
Medical Research, ISO 9002
Provision of high-quality healthcare at affordable rates
Availability of sophisticated medical equipment, such as the PETCT scan, 320 Slice CT Scanner, Cyber knife

Weaknesses
High attrition rates among the nursing workforce to Western
countries and competitors due to higher salaries and perks
The rising costs of healthcare delivery makes majority of the
private hospitals expensive for a normal middle-class family

Some Suggestions for improving the position

of the Apollo hospitals

Typically large hospitals with approximately 500 bed

capacity takes about 9-10 years to break even whereas
super-specialty hospitals with about 100 beds take about 67 years to break even. Therefore, going in for
superspeciality hospitals seems to be a more viable option
today

Hospitals could also generate revenues from medicines if

they are supplying them in-house

Health Plan packages can be provided by hospitals to family

and corporate. For example Family Health Plan Services
(FHP), a subsidiary of Apollo Hospitals does health
management of employees of its clients

Some Suggestions for improving the position

of the Apollo hospitals contd..

Apart from preventive healthcare, stress management programs

could be provided. For example ,Effective Stress Management
Programme offered by Wockhardt Hospital. This programme
provides a medical perspective of stress and is conducted by a
medical professional

Hospitals can become integrated healthcare systems i.e. when

medicines, food services, laundry and linen etc will become
"purchased" services. These third-party operations will increase
the profit margins.

Mergers could be used for synergy of skills - i.e. to help the

merged organizations benefit from one another's individual
strengths by applying them across the board. It also helps them
to make joint investments in branding or information technology
and also to react effectively to the changed market forces

Thank You..