Idea in 20 words! Carrying out entire vaccination course and normal healthcare check-up of newborns through a world-class home service model.

1. AURORA -Baby Care At Your Doorstep
Category –  People  Planet  Profit
A Venture of Synergy Team
Members:
1. Ganesh C B at IIT Madras getganz@gmail.com +919940621646
2. Minakshee Shukla at Syntel Inc. minakshee05@gmail.com +918308826652
3. Dr. Rohan Biradar at Chetana Business School rohanbiradar30@gmail.com +919960583808
4. Sanuj krishnan at XLRI Jamshedpur sanoojcools@gmail.com +917209429707

2. TABLE OF CONTENTS
Executive Summary .......................................................................................................................................................3
Business Problem...........................................................................................................................................................3
Business Solution ...........................................................................................................................................................4
Service Description And Value Proposition ...................................................................................................................4
Our Core Offerings .....................................................................................................................................................4
Augmented Services/offerings ..................................................................................................................................4
Target Audience & Market Size .................................................................................................................................5
Mumbai .................................................................................................................................................................5
Delhi .......................................................................................................................................................................5
Revenue Model And Pricing ..........................................................................................................................................7
Key findings from the survey: ....................................................................................................................................7
Sales And Distribution Model ........................................................................................................................................8
Bird’s Eye View of the Plan ............................................................................................................................................9
Team Structure And Composition ...............................................................................................................................10
Introducing Our Core Team of 4 members ..............................................................................................................10
We will recruit: ........................................................................................................................................................10
Personnel Plan: ........................................................................................................................................................11
Competitive Landscape ...............................................................................................................................................12
Growth And Scalability ................................................................................................................................................13
Our Strategy.............................................................................................................................................................13
Associated challenges and issues: ...........................................................................................................................14
Key points and assumptions : ..................................................................................................................................16
2|Pa g e

3. EXECUTIVE SUMMARY
Idea in 20 words!
Carrying out entire vaccination course and normal healthcare check-up of
newborns through a world-class home service model.
We envision revolutionizing baby care in India. Having quality care in the safety and comfort of
home is what we envisage for the newborns. By carrying out the entire vaccination course,
comprehensive check-ups, conduct tests and follow-ups AT HOME we help save the back and
forth trips and coordinating appointments for customers.
BUSINESS PROBLEM
It is difficult to stay on top of the vaccines schedule for children with new vaccines
coming and many of them needing multiple/booster doses.
Regular “well baby” check- ups are essential for baby health and growth. An experienced
pediatrician must weigh, measure, check the eye sight, hearing and health condition of
the newborns for the first 3 years – which we frequently miss.
Performing such activities in traditional manner has become very costly and also
inconvenient (requiring on an average 25 hospital visits over first two-three years) with
more and more families having both the parents working.
Taking babies for a vaccination shot or check-up needs a lot of preparation. You may
need to feed them regularly, carry nappies, and since it is difficult to drive with babies,
usually both the parents together make the trip to Hospital and it takes usually between 3
to 5 hours for the entire trip.
3|Pa g e

4. BUSINESS SOLUTION
The goal of our business it to meet the above stated in a world-class and cost-effective manner.
The whole idea is to get signups from nursing homes and hospitals for vaccination and
comprehensive periodical checkups of newborns carried out by experienced pediatricians. We
envisage a state of the art mobile vaccination unit with doctor and paramedic to carry out this
activity at the convenience of our customers/patients.
SERVICE DESCRIPTION AND VALUE PROPOSITION
The home delivery of baby healthcare service is carried out with the aid of mobile unit, medical
team (pediatrician& paramedic), cold storage (for drugs) and extensive ERP. Our service is
divided into Core and Augmented Offerings as explained below:
OUR CORE OFFERINGS
1. Health consultancy
 20 comprehensive health check-ups for the baby
2. Entire Vaccination course
AUGMENTED SERVICES/OFFERINGS
1. Nutritional advices
2. Patient referral (referring infants) to hospitals on critical/complicated
conditions
4|Pa g e

5. TARGET AUDIENCE & MARKET SIZE
 Target customers for the initial phase are primarily couples having infants and living in
metro cities of India with annual income of more than 8 lakhs per annum
 The primary target according the socio economic segmentation will be the A & B
categories, which are in higher managerial, intermediate managerial, administrative and
professional services.
We are focusing on Mumbai and Delhi as our initial pitching cities. As we target hospitals and
nursing homes for customer acquisition, the number of hospitals and nursing homes will become
a significant factor for our targeting strategy. We have close to 90+ private hospitals (which
accounts to around 20,730 beds) in Mumbai in addition to a large number of private nursing
homes.
MUMBAI
 Current population of Mumbai is 20.5 million, and is expected to grow at the rate of
about 50% decadal growth rate. With a sex ratio of 774 and literacy rate at 86%
(according to 2011 census), it promises to be a dominant market to our business
 According to a socio economic survey conducted in Navi-Mumbai the median age of the
population is close to 28.55 years, with males averaging to 28.3 and females averaging to
27.9 years. 40% of the population has professionals of which 18% falls in Category A &
B of socio economic segmentation.
DELHI
 The population of Delhi in 2011 is 16.75 million with 8.97 million males and 7.77
million females, and is growing at a percentage decadal growth rate of 20.96%. The city
has a sex ratio 866, literacy rate of 86% and a population density per sq km of 11297.
5|Pa g e

6.  The total population in the age group of 0-6 is 1.97 million1 . Also about 44.56% of the
total population in the age group of 20-30 has females who are our potential customers.
 The birth rate2 is 19.35 per thousand in 2007.
The inference from studying the demographics of these two cities is that there is a huge potential
for growth of the proposed business plan in these cities. Going by the birth rates every year there
are 324112 births in Delhi (according to statistics of 2007) and 175298 births in Mumbai
(according to 2009 statistics). The decreasing trends in birth rate in both the cities over the past
decade can be considered as a challenge to the proposed plan. As the targeted segment is the
upper middle class and upper class and since this is a long term relation based business, the
decrease in birth rates will have only a meek effect on the business. The increase in sex ratio and
socio economic growth in these cities will help in the growth in the numbers of the targeted
segment.
1
Source: http://censusindia.gov.in
2
Source: The economic survey of Delhi 2008-2009. http://www.delhi.gov.in
6|Pa g e

7. REVENUE MODEL AND PRICING
For pricing we have bench-marked with the market pricing and the current industry offerings
(cost based pricing) for baby health. The crucial components considered are:
 Cost of vaccines (the MRPs of entire recommended vaccine doses ranges from a max. of
INR 22835 to min. of 3610)
 Cost of consulting ( number of hospital visits costing INR 750 each in first 3 years range
from max of 30 visits to a min of 10 visits
 Opportunity cost ( the cost of traveling, paid leaves and time opportunity and
convenience have been estimated at INR 10000)
We have priced these components optimally at INR 15000 (vaccination), INR 15000
(consulting) and INR 10000 (opportunity cost) all adding to a figure of INR 40000.
We have also carried out a survey to assess demand, willingness to pay, and affordability as we
believe that is a need to communicate with the potential recipients of services, asking them for
their opinions regarding service options, costs, and methods of payment. This survey also helped
us in coming to a rational price based costing. The 16 question survey was carried out on the
target segment with 74 respondents.
KEY FINDINGS FROM THE SURVEY:
Doctors do not spend enough time consulting the babies (47% of the respondents)
A high opinion of family and friends is the most important factor (43% of the
respondents) in deciding the service provider
Around 68% of the respondents were willing to pay anywhere between INR 30000 and
INR 40000 for our proposed service, where as 17% of them showed interest in a higher
range between INR 40000 and INR 50000
7|Pa g e

8. Around 82% of the respondents preferred early evening after 5 PM for the service or
anytime in the afternoon option
We will offer services at three price points:
 Basic/Budget Pack : INR 30000 Only
 Optimum Pack : INR 40000 Only
 Premium Pack : INR 50000 Only
3.
These will be sold to customers across Hospital and Nursing homes based on negotiated
agreements and tie ups.
SALES AND DISTRIBUTION MODEL
We target the hospitals and nursing home for customer acquisition with whom deals are
negotiated for each sign-up. Once we tie up with the hospitals/nursing homes, they become our
point of sales. We plan to deliver the world class baby care by using a state-of-the-art mobile unit
equipped with basic diagnostic kits and cold storage for vaccination. An ERP and Logistics
System - which helps us track customers, vaccines inventory, pediatrician profiles and decide the
optimum route - will be used for effective delivery of services.
8|Pa g e

9. BIRD’S EYE VIEW OF THE PLAN
The diagram below gives a bird’s eye view of the proposed plan with indicative milestones.The
key miles stones of the plan are acquisition of talent, sourcing of the equipments, buliding
infrastructure and getting the initial clients & customers.We have also identified a 5 step process
flow for the activities that needs to be performed once the milestones are attained.
Acquisition of Technology &
talent - Infrastructure -
Pediatrician & Website, ERP and
Paramedic regulatory
requirements
Acquiring –
Sourcing –
Initial clients and
Mobile Units,
customers
Vaccines and Cold
storage
9|Pa g e

10. TEAM STRUCTURE AND COMPOSITION
INTRODUCING OUR CORE TEAM OF 4 MEMBERS
 Dr. Rohan Biradar - Sales and Business Development
Dr. Rohan is an MBA- MBBS with strong business acumen and subject matter expertise
with relevant experience.
 Sanuj Krishnan - Business Development and Talent Sourcing
Sanuj is an MBA from XLRI Jamshedpur with demonstrated capabilities in cross
functional roles in healthcare industry, talent and ideation.
 Minakshee Shukla - Operations and Talent Sourcing
Minakshee is an MCA with extensive experience working in IT, networking and resource
planning domains.
 Ganesh CB - Operations and Finance
Ganesh is a Mechanical Engineer - gold medalist and an IIT- Madras student with strong
flair for operations, business and finance.
WE WILL RECRUIT :
 A seasoned Pediatrician with at least 5 years of hospital experience to evaluate, plan and
administer a variety of baby care therapy activities and growth plans at the customers
comfort and place.
 An experienced paramedic to accompany the doctor and
 A driver who knows various routes in the city under consideration.
10 | P a g e

11. PERSONNEL PLAN:
The table below shows our personnel plan we have for the next 5 years. These are numbers have
been arrived at after an initial market inquiry.
Year 1 Year 2 Year 3 Year 4 Year 5
Pediatrician 3,000,000 6,000,000 9,000,000 12,000,000 12,000,000
Compounder 240,000 480,000 720,000 960,000 960,000
Office assistant 120,000 120,000 120,000 240,000 240,000
Driver 120,000 240,000 360,000 480,000 480,000
Total People 4 7 10 14 14
Total Payroll (INR) 3,480,000 6,840,000 10,200,000 13,680,000 13,680,000
We believe in multitasking and maximization of resource utilization to increase the chances of
our survival and flourishing.
11 | P a g e

12. COMPETITIVE LANDSCAPE
 Currently there are no players offering HOME SERVICE FOR BABYCARE in the
Indian Market. However in the US, there is a similar company called Mobile Doctor,
based out of Chicago. (http://www.mobiledoctors.com). They primarily target the elderly
for their home care services.
 Major players like Apollo Hospitals, can become our competitors if they see this as a
viable business option. We can also expect start-ups based on internet "desktop to
doorstep model" in the baby healthcare in future to enter into this business model.
 We plan to build an entry barrier by forming industry defining network with major
players (For example tie-ups with super specialty Children's Hospitals like Suraksha,
Yashoda and Ladycare). We can grow and make ourselves a household name for home
delivery of health services and serving as a channel partner for various Hospital Giants in
the country.
 We define the critical success factor in this industry as - Cost effectiveness, Technology,
Service orientation and Industry support. These can in course of time become a
formidable industry barrier in itself.
 Also expanding into the lucrative tier II cities opens up a huge market that can support
many competing players together
12 | P a g e

13. GROWTH AND SCALABILITY
We plan to start our operations in Mumbai. We are confident of getting 180 signups from the
first year of operation (averaging 15 signups per month) More details are given in the following
pages. Since this business is highly relationship oriented, we believe that having tie-ups with key
players in the industry will ensure a continuous supply of sign-ups and subsequent revenues.
Hence heavy initial investments will be required in building networks and tie-ups.
The growth we mentioned above comes from two basic means:
Penetration: We also plan to invite signups directly from the Aurora website (to be
specifically built for the purpose). The potential customers would be mostly the word of
mouth driven and also instances where pediatricians have recommended our service. We
may also consider increasing the bucket of services that we offer and also take care of
high growth child nutrition services
Geographical Expansion: Once we establish our stronghold in Mumbai, we will expand
to other tier I cities like Chennai and Delhi. We are also interested in taking venturing
into the attractive tier II markets like Ahmadabad and Kochi
OUR STRATEGY
Our objective is to become the leading provider of home based healthcare services for children
below 3 years. We have identified the following 4 strategic vehicles to achieve our goals.
1. Boost & adapt menu of offering
Continuously update the offering taking feedbacks from parents, pediatrician and
industry trends
Increase the service menu by adding rare diseases vaccines according to customer
tastes
2. Develop long-term strategic relationships with customers
13 | P a g e

14. Invest heavily in delivering customer ecstasy by being flexible, by spending more time
with customers and learning new ways to add value to them
3. Exploit strategic relationships to create new distribution channels
As indicated earlier, probing options for being channel partners for the established
healthcare institutions in providing extended services, through win-won relationships.
4. Web Strategy
First class interactive website designed to distinguish itself clearly among other
players, and other traditional informational websites.
Efforts to engage the customer community by having well maintained discussion
forums and social media interface.
ASSOCIATED CHALLENGES AND ISSUES:
1. Getting the initial set of clients is going to be the key challenge for us.
2. Hiring and retaining the right pediatrician with sufficient experience &
credibility - for a new home service business model
3. Establishing SOP for pediatricians that serves the twin purpose of customer
ecstasy and efficiency of operations in giving truly world beating health
service to newborns
4.
We expect the sales to pick up gradually and then get stable over time. The table below gives the
projected sign-ups (closings) for the first year of operations.
14 | P a g e

15. Projected closings = 60 for the first 6 Projected closings = 120 for the next 6
months averaging 10 signups per month months averaging 20 signups per month
We estimate the initial outlay to be INR 30 lakhs (approx.) as shown below:
We have obtained these figures by interviewing people in the corresponding fields. A more
specific value could be arrived at by going for quotations for various services directly from the
providers.
Total Initial Outlay : 3,000,000
17%
27% Cold storage
Mobile Units
10%
Furniture & fixtures
Equipments
3% 10%
Land & buildings
33% ERP, website and database
15 | P a g e

16. The following table shows the projected sales and net profit for eight years of operation of the
proposed plan. This forms the basis of subsequent calculation of NPV and IRR of the plan. We
have also mentioned the assumptions made in our calculations below the table.
Year 2011 2012 2013 2014 2015 2016 2017 2018
Growth % 40 40 40 40 20 20 12 12
Signups 180 252 353 494 593 711 853 1,024
Sales(‘000) 7,200 10,080 14,112 19,756 23,708.16 28,449.79 34,139.75 40,967.70
Net Profit
325 -2,320 -3,076 622.44 3,198.728 5,705.274 5,047.128 9,025.754
(‘000)
KEY POINTS AND ASSUMPTIONS :
 We have put the price of each signup at INR 40000.
 Major expenses considered are INR 3,000,000 per year for physician and INR 1,800,000
for vaccines, 360,000 for conveyance for year I of operation.
 We assumed the growth to be 40% (for first four years), 20 percent (next two years) and
getting stable at around 12% henceforth.
 Mobile units costs INR 10 lakh each and depreciate at 20% per year for five years
(straight line depreciation)
 Tax rate is assumed to be 35 percent in the calculation
 We have assumed subsequent outlays of INR 10 lakh each in second, third, fourth and
seventh year of operation due to proposed purchase of Mobile Units in those years
 We have also assumed outlays of INR 1 lakh per year towards website, database and ERP
maintenance.
 We assume access to equity capital and financing to support our financial plan
16 | P a g e

17.  We assume our financial progress based on realistic sales to minimum sales against
highest expenses.
The following table shows the Projected Cash Flow Estimate for the first 8 years under the
stated assumptions and projections.
Given below are the NPV and IRR of the business plan (assuming 8% as risk free interest rate)
The net present value of the idea works out to just over a 100 lakhs INR. This is based on a
conservative assumption about sales and growth of the business.
Initial Outlay NPV IRR %
3,000,000 10,467,954 32.4
We thank you for your patient reading and wish your sincere feedback about our business
proposal that would help us bring this dream of ours into reality.
Synergy for Aurora
17 | P a g e