AMRI Roadmap

EXECUTIVE SUMMARY : Roadmap & Way Forward
| December 2014
1. Indian Healthcare Scenario
2. Eastern India’s Healthcare Market
3. Growth Drivers for Health Care Industry
4. Situational Analysis / Present Scenario
5. Strategic View – Short Term, Mid Term & Long Term
6. Multi Dimensional Achievement Path
CONTENTS

Indian Healthcare Scenario
The Indian Health Care Industry, Growing at a CAGR of 15% is
Expected to touch US$ 250 billion by 2020
-- PRICE WATERHOUSE COOPERS
India being a country with growing population, country's per capita healthcare
expenditure has increased at a CAGR of 10.3% from $43.1 in 2008 to $57.9 in 2011
and going forward this figure is expected to rise to $88.7 by 2015
--ECONOMIC TIMES
Private sector's share in healthcare delivery is expected to increase from 66% in 2005
to 81% by 2015. Private sector's share in hospitals and hospital beds is estimated
at 74% and 40%, respectively
--EQUENTIS CAPITAL
URL - http://www.pwc.in/industries/healthcare.jhtml
URL - http://articles.economictimes.indiatimes.com/2013-12-02/news/44657410_1_healthcare-sector-healthcare-delivery-fortis
URL - http://economictimes.indiatimes.com/topic/Equentis-Capital

Growth Drivers for Health Care Industry
Huge scope for enhancing healthcare services considering
that healthcare spending as a percentage of GDP
Rural India, which accounts for over 70 per cent of population
and is set to emerge as a potential demand source
Only 3 per cent of specialist physicians cater to rural demand
Vast opportunities for investment in healthcare infrastructure
in both urban and rural India
About 1.8 million beds required by the end of 2025
Additional 1.54 million doctors and 2.4 million nurses
required to meet the growing demand
DATA SOURCE -

Eastern India – Health Care Industry Update
KOLKATA – Nucleus of the East
The private sector has emerged as a vibrant force in India's healthcare industry,
lending it both national and international repute.
Private sector's share in healthcare delivery is expected to increase from 66% in 2005
to 81% by 2015. Private sector's share in hospitals and hospital beds is estimated
at 74% and 40%, respectively.
There is substantial demand for high-quality and specialty healthcare
services in tier-II and tier-III cities.
As per data available for 2008, the total number of sanctioned beds in Kolkata
stood at 26,739 for an estimated population of 51 lakh
POSSIBLE CATCHMENT AREA
 Entire City Populace
 Entire State of WB
 Neighboring States
 Neighboring Countries –
Bangladesh
Nepal
Bhutan
Myanmar
DATA SOURCE URL - http://healthcare.financialexpress.com/201007/market01.shtml

Situational Analysis – SWOT Assessment
STRENGTH WEAKNESS
THREATOPPORTUNITY
- EMAMI GROUP : Parent Company Backing
- Existing Brand Recognition
- Multiple Units
- Advanced Technological Infrastructure
- Non Standardized Service Decorum
- No Accreditations
- Low Morale of Workforce
- Diluted Branding
- Negative Brand Perception
- Pre-Dominant Branding of Other Players
- Non Synchronization between Units
- Inability of Workforce to Face Challenge
- Multiple Geographical Touch Points
- Head Start in Growing Healthcare Market
- Media Attention
- Existing Doctor’s Pull

AMRI ROADMAP :: Way Forward Strategic View
Short Term
Next 6 months
→Reach Break-Even Scenario in coming months to achieve Financial Freedom
→Brand Repositioning for Market Acceptance/Increased Footfall/Awareness/Occupancy/Top-Line
CONSOLIDATION MODE
 Move Onward
 Corporate Restructuring
Induce IN-SYNC approach across the organization by redefining the core corporate team that will start the TRANSFORMATION
journey and take the group to the next level.
 Planning for Deeper Market Penetration
Strategic GO TO MARKET approach a for capturing newer market share
 Corporate Empanelment
 Focus on District Level Brand Visibility & Sales Thrust
 Special Emphasis on North East Zone
 Continuous & Sustainable Promotional Campaigns Across Markets
 BPR Initiative
 Ensuring Clinical Excellence
 Ethical Excellence and Evidence Based Treatment
 Recruiting Star Consultants for our Centres of Excellence
 Service Excellence & Billing Transparency

Short Term
Next 6 months
CONSOLIDATION MODE
 REDIFFUSION Y&R – leading advertising agency working on repositioning of BRAND AMRI
 AMRI Interactive Future Ready Web Portal – Launching Shortly
 Recruitment of core team in Finance, Medical Services, Nursing, Maintenance, Procurement at Group Level
 We are also strategizing to increase our top line besides initiating aggressive cost control measures.
 Apparatus

Short Term
Next 6 months
CONSOLIDATION MODE
Restructuring Mukundapur Unit is of prime importance in terms of Infrastructure, Improvement in Service
Delivery Module & Increasing Brand Awareness. In the last two and a half years it has gone through major
changes and Brand dilution is the biggest threat to the unit as of now.
In next few months we would reposition & re-launch AMRI Mukundapur.
The infrastructural development work would also be completed by this time and it would thus become
a full-fledged Multi-Disciplinary Hospital.
 Introducing WOW factors for Patient Satisfaction
 MUKUNDAPUR
However we feel that only group level macro planning would not be enough as all the four units have
different concerns and they need to be resolved accordingly

Short Term
Next 6 months
CONSOLIDATION MODE
 Implementation of 40:60 Revenue Model with skewed towards surgery based revenue
Establish COE – Neuro Science, Uro Science, Cardiac Science, Gastro Science
Introducing Full Time Star Consultants
 Initiate full set up for ONCOLOGY including Radiotherapy
 Increase ARPOB + Reduce ALOS + Maximize CONGO Share
 DHAKURIA
A newly opened Unit with lost glory, we are trying to rebuild and re-launch AMRI DHAKURIA as a
flagship strategic business unit of AMRI Hospitals Ltd.

Short Term
Next 6 months
CONSOLIDATION MODE
 Increase EBITDA Margin from 9% to 12%
HR Action Plan – Optimum Manpower Utilization & Regular Grooming/Etiquettes Workshop
Change Outdoor Facade & Indoor Ambiance Revamp
 Sorting out Legal/Statutory Issues
 Sorting out operational issues like F&B/Linen etc.
 SALT LAKE
Although SL Unit is in GREEN, there are some teething issues which needs to be tackled strategically
for long term sustainability.

Short Term
Next 6 months
CONSOLIDATION MODE
Increase OPD Footfall by 100% in next 6 months
Achieve 250+ Surgery per month
Increase Corporate Empanelment/Tie-Ups across Eastern India
 Introduction of GPS Enabled Critical Care Ambulance Fleet
 Restructuring & Strengthening Marketing Team
 BHUBANESWAR
A GREENFIELD Project started 1 year ago -

Mid Term
2015 - 2017
 Completing the process of Centralized Control and Group Formation.
 Finishing off all the Accreditation related work.
 Introducing academic courses by introduction of DNB, PGDCC and Paramedic Courses by Jadavpur University
 Increasing business, Reaching an EBITDA of 16%
 Considerably increase PBT and reduce negative PAT
 Creation of SOP
 Implementing full fledged “Telemedicine” system across all the units
 Create differentiation with peer group in terms of – Clinical & Service Excellence & Patient Experience
Group Level Planning

Mid Term
2015 - 2017
 Increase ARPOB to 20000 from existing 14500
 Reaching a positive 10% EBITDA level
 Earning Revenue of 110 crores
 Targeted EBITDA will be 8 crores
 Maintaining an average occupancy of 80%+ on a regular basis
 Finishing off Mukundapur 40 Kottah project and making it a complete tertiary care hospital
Unit Level Targets
 Mukundapur Unit

Mid Term
2015 - 2017
 Restarting the development process of the affected building
 Change outdoor façade for premium look and feel
 Maintaining average occupancy level of 85%-90%
 Reach a positive 15% EBITDA
 Earning a Revenue of 120 crores and an EBITDA of 16 crores
 Complete and make all the departments functional with required equipment and Doctors
Dhakuria

Mid Term
2015 - 2017
 Complete all Infrastructures Development Work
 Maintain occupancy level of 85% - 90%
 Increase EBITDA to 16%
 Reaching an ARPOB of 25000
 Complete all equipment up gradation work
 Give the entire unit a revamped new look and feel
 Reaching a revenue target of 166 crores and EBITDA of 23 crores
Salt Lake

Mid Term
2015 - 2017
 Make all the 370 beds operational
 Reach 65%-70% occupancy level
 Integrated Branding Approach
 Reaching ARPOB of 21000
 Earning a revenue of 145 crores and an EBITDA of 18 crores
 To start full-fledged Oncology & Radiotherapy Services
 To start Liver Transplant Service
Bhubaneswar

Long Term
Next 5-7 Years
 Create Centre of Innovation for defined specialties
 Introducing SAP for back office integration
 Make AMRI a paperless green hospital
 To establish AMRI as fastest growing Healthcare Brand in terms of Bed Strength & Revenue
and to establish National Footprint of AMRI Brand
 To promote international medical tourism and do International Marketing in a more planned
& organized way in order to get a good number of International patients on a regular basis
 Complete Rajarhat project and make AMRI Rajarhat a State of the art tertiary care Hospital
Forward March
→ 5-7 year is a long time span. A lot of plans we have to make AMRI Hospitals the best hospital
in Eastern India. At a glance we are planning to do following things :-

AMRI ROADMAP :: Multi Dimensional Achievement Path
• Drive Cultural Change in Service Delivery Attitude
• Uniform Brand Behavior Across All AMRI Units – Shirt Emblem/Badge – Let Me Help !
• AMRI Specific Internal Ambience Branding at All SBU’s
RE-ESTABLISH
• Create Synergy within AMRI Management / SBU / Staff
• Maximize Interactive Social Media Engagement with Populace
• Extensive Brand Exposure through PR Coverage, Brand Campaigns for Renewed TOMA
• Relationship Building Activities with Doctors, Opinion Makers, Thought Leaders
RE-BUILD
• Brand Ambassador – SOURAV GANGULY – India’s Biggest Come Back Hero
• Establishing AMRI Group as a Top Healthcare Brand
• CSR Events to Augment Socially Responsible AMRI Corporate Brand Identity
• Superior Healthcare Promise – Viral Patient Testimonial Video Capsules
RE-CONNECT
AMRI R3 Approach :: ILLUSTRATIVE MODEL || Timeline – IMMEDIATE + CONTINUAL

AMRI ROADMAP :: Multi Dimensional Achievement Path
RE-CONNECT
RE-BUILD
RE-ESTABLISH
TOMAS–TopOfTheMindAwarenessSlot
AMRI R3 Approach
AMRI MASS COMMUNICATION MODEL
BRAND VALUE - Saving Lives

Thank You
rupak@amrihospitals.in
Imagine Innovate Initiate

AMRI Roadmap

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