For Office Use:

Grade

Communication for Managers

Group Assignment No. 1

“Apollo Hospitals Enterprise Limited”

Submitted By:

Group No.: 12

Section: X

Batch: MBA-FT (20XX-20XX)

Institute of Management, Nirma University

Date of Submission: 15/10/20XX

Introduction of the Industry:

Introduction:

Healthcare has become one of India’s largest sectors - both in terms of revenue and
employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing,
telemedicine, medical tourism, health insurance and medical equipment. The Indian
healthcare sector is growing at a brisk pace due to its strengthening coverage, services and
increasing expenditure by public as well private players.
Indian healthcare delivery system is categorised into two major components - public and
private. The Government, i.e. public healthcare system comprises limited secondary and
tertiary care institutions in key cities and focuses on providing basic healthcare facilities in
the form of primary healthcare centres (PHCs) in rural areas. The private sector provides
majority of secondary, tertiary and quaternary care institutions with a major concentration in
metros, tier I and tier II cities.
India's competitive advantage lies in its large pool of well-trained medical professionals.
India is also cost competitive compared to its peers in Asia and Western countries. The cost
of surgery in India is about one-tenth of that in the US or Western Europe.

Market Size:

The healthcare market can increase three fold to Rs 8.6 trillion (US$ 133.44 billion) by 2022.
India is experiencing 22-25 per cent growth in medical tourism and the industry is expected
to reach US$ 9 billion by 2020.
There is a significant scope for enhancing healthcare services considering that healthcare
spending as a percentage of Gross Domestic Product (GDP) is rising. The government’s
expenditure on the health sector has grown to 1.4 per cent in FY18 from 1.2 per cent in
FY14. The Government of India is planning to increase public health spending to 2.5 per cent
of the country's GDP by 2025.

Introduction and structure of the Company:

Apollo Hospitals Enterprise Limited is an Indian hospital chain based in Chennai, India. It is
the largest private healthcare services provider in India. It was founded by Dr. Prathap C.
Reddy,thirty six years ago, in 1983 as the first corporate healthcare in India. The first branch
at Chennai was inaugurated by the then President of India, Zail Singh. 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) as well as 13 NABH National
Accreditation Board for Hospitals & Healthcare Providers hospitals.

Apollo Hospitals Group is the only global institution with presence in every facet of the
healthcare eco-system, encompassing curative health, pharmacies, retail health, diagnostics,
telehealth, home health, as well as preventivehealth and wellness, medical education and skill
development along with health insurance and pharmacies. To mark the pioneering efforts of
the company inthe area of Preventive Healthcare in India, theHon’ble Governor of Tamil
Nadu, Shri Banwarilal Purohit, launched a Postal Stamp in February this year.It opened its
3400th pharmacy store this fiscal. Thepharmacy business now contributes 39% to theirtop
line.Their retail business has a robust network of birthing centres, primary clinics, dental
clinics, sugar clinics,dialysis centres and diagnostic labs, making them the leading retail
healthcare provider in the country.On the 24th of February, the company opened its 70 th
hospital, a multi-speciality hospital in Lucknow – ApolloMedics, inaugurated by Shri Ram
Nath Kovind, the Hon’ble President of India.It has received 44awards and accolades in India
and abroad, in recognition oftheir commitment towards patient centricity, clinicalexcellence
and innovation. It was also awarded the No 1 rank among Indian hospitals, for the 16th year
in a row byThe Week magazine.

Apollo’s Governance structure broadly comprises of the Board of Directors and the
Committees of the Board at theapex level and the Management structure at the operational
level. With a view to have a more focused attention on various facets of business and for
better accountability, the Boardhas constituted the following committees viz. Audit
Committee, Stakeholders’ Relationship Committee, Nomination and Remuneration
Committee, Risk Management Committee, Corporate Social Responsibility Committee and
Investment Committee. Each of these Committees have been mandated to operate within a
given framework.

Business Information:
 1. Products:
The two major products of the group are Healthcare and
Pharmaceuticals.

SALES VALUE (Rs

PRODUCT NAME Cr.)

HealthCare Services 4422.6660

Pharmaceuticals 3886.0370

Other Operating Revenue 27.9530

Considering the figures of Apollo Hospitals Ltd.:

Apollo Hospitals has emerged as Asia's foremost integrated healthcare services provider and
has a robust presence across the healthcare ecosystem, including Hospitals, Pharmacies,
Primary Care & Diagnostic Clinics and several retail health models.

2. Services

Apart from healthcare services, the Group also has Telemedicine facilities across several
countries, Health Insurance Services, Global Projects Consultancy, Medical Colleges,
Medvarsity for E-Learning, Colleges of Nursing and Hospital Management and a Research
Foundation.

Apollo Hospitals is the largest provider of Cardiology services in India. In addition, 'ASK
Apollo' - an online consultation portal and Apollo Home Health provide the care continuum,
ApoKos - India's first rehabilitation hospital providing comprehensive rehabilitation for a
range of medical conditions. Apollo TeleHealth Services will reach a wide base of population
using modern Telehealth technologies in cost effective and convenient ways.
 3. Customers

The Apollo Standards of Clinical Care (TASCC) embodies standardization of processes and
outcomes for clinical excellence and patient safety, across all the Group hospitals irrespective
of their location and size. TASCC was first implemented in January 2012.

According to the FY’18 report, of the number of patients-

 Admissions 400,000+

 Out-Patients 3,500,000+

 Preventive Health Checks 300,000+

 Heart Surgeries 10,000+

 Joint Replacements 6,500+

 Neuro Surgical Operations 14,000

 Robotic Surgeries 800

 Kidney Transplants 850

 Liver Transplants 225

 Countries Medical Value Travel

 120 Bone Marrow Transplants

 170+ Radiotherapy Sessions 160,000+ Chemotherapy Sittings

4. Market

 India is a hugely under-penetrated market for healthcare services

 Demographic shifts, changing consumption pattern and increasing affordability makes

India one of the fastest growing healthcare markets

 It is pertinent to mention that the Country’s healthcare sector is strongly supported by

the Indian Government which has been undertaking commendable work to develop
India as a global healthcare hub. In the Union Budget 2018, the Government of India
announced the ‘Ayushman Bharat - National Health Protection Mission’ (AB-NHPM),
 under which over 100 million poor and vulnerable families of the country will get
access to quality healthcare through an insurance model.

 The overall Indian health care industry revenue currently stands at an estimated size
of USD 160 billion and is expected to touch a size of USD 372 billion by 2022

 The Indian healthcare delivery segment is largely driven by private sector players who
occupy a major share of nearly 80% of the country’s total healthcare market.

 The Apollo Group is well-positioned to accelerate.

5. Technology

Perhaps now more than any other time in our history, we are realising the importance
of technology in social service delivery, and its role in enhancing the general quality
of life. Growing up in India, where the majority has minimal access to basic public
amenities like healthcare, one develops an appreciation for the value of enabling such
technologies that assist and scale service delivery in the context of developing
countries. Technology can be transformative in delivering healthcare services, where
the density of doctors is one per 1,000. A strong imbalance exists where urban areas
have four times as many medical practitioners compared to rural areas, making rural
India grossly underserved. The quality of education of providers (allopathic,
ayurvedic, unani and homeopathic) is not comparable between rural and urban
centers. When 58 percent of the doctors in urban areas had a medical degree, only 19
percent of those in rural areas had that qualification.

Inferences:
 As the Indian healthcare market is growing, Apollo Hospitals’ focus on
standardization through TASCC will bring down the cost and will help Apollo
Hospitals to increase occupancy rate.
 As India’s penetration of hospitals is projected to grow, Apollo Hospitals should start
focusing on Tier-II and Tier-III cities.
 The diversified services offered by Apollo will help Apollo to increase their revenue.
 The robust growth in medical tourism in India will increase profitability of private
players like Apollo Hospitals.
 Indian Government has increased its expenditure on healthcare which would create
demand from untapped sectors. Thus, Apollo Hospitals can continue their expansion
without facing any bottlenecks.