Apollo Hospitals Enterprise Limited (AHEL) is a leading private healthcare provider in Asia. It owns and operates a network of hospitals and clinics across India. As of June 2012, AHEL had 49 hospitals with nearly 8,000 beds, including 36 owned hospitals. In the first quarter of 2013, AHEL reported consolidated revenues of 8.8 billion rupees, up 21.8% from the previous year. Apollo Hospitals has pioneered many new medical procedures and technologies in India and receives medical tourists. While opportunities for growth exist in India's expanding healthcare market, Apollo Hospitals faces threats like rising costs and shortage of skilled medical professionals.

1. Presented By:
Akshay S. Jalihal (Roll No. 06)
Ashwini Dhage (Roll No. 13)
Priyanka Selukar(Roll No. 37)

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

3. 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)

4. 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

5. Porter's Five Forces Analysis
 The threat of new entry is quite high: if anyone looks as if they’re
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

6. 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

7. 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 PET-CT 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

8. 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 6-7 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

9. 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

10. Thank You..