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Medical Tourism Market – India November 2014
Executive Summary Market
Drivers & Challenges
Government Initiatives
SAMPLE
Medical tourism market in India is expected to grow at a CAGR of 20.1% from 2013 to 2018 International patients travelling to India is expected to rise significantly in coming years Drivers: High quality treatments at low costs Expanding private healthcare infrastructure Increasing demand for fertility treatments Alternative medicine Aesthetic Pleasure Convenience to patients
Medical Visas Fiscal Incentives
Challenges: Regulatory issues No provisions for follow up care Unsuitable environment and problems associated with travelling Lack of international accreditations Strong competition from other Asian countries PPP Model for Healthcare Promotional Activities
Medical Tour Facilitators
Competition
Erco Travels Pvt. Ltd. Sahara India Pariwar
Bonanza Medical Tourism Pvt. Ltd. Forerunners Healthcare Consultants Pvt. Ltd.
Hospitals Apollo Hospitals Enterprise Ltd Fortis Healthcare (India) Ltd.
MEDICAL TOURISM MARKET IN INDIA 2014.PPT
Max Healthcare Institute Ltd. Global Health Pvt. Ltd. 2
•Macroeconomic Indicators •Introduction •Market Overview •Medical Tourism Destinations •Drivers & Challenges •Government Participation •Market Trends •Competitive Landscape Hospitals Medical Tour Facilitators
•Strategic Recommendations •Appendix MEDICAL TOURISM MARKET IN INDIA 2014.PPT
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Economic Indicators (1/3)
SAMPLE
GDP at Factor Cost: Quarterly INR tn 15
13
13.71 13.14 12.47
13.69 13.06 12.41
12
11.61
11.65
14
14.71 14.04 13.36
14.15 13.51
12.75
11
Q1
Q2 2010-11
2011-12
2012-13
Q3 2013-14
Q4
Inflation Rate: Monthly %
2 1
0.85
1.26
0.83
0.42
0 -1 -2
-1.65 Jul 2013 - Aug 2013
Aug 2013 - Sep 2013
Sep 2013 - Oct 2013
Oct 2013 - Nov 2013
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Nov 2013 - Dec 2013 4
Medical tourism is one of the fastest growing segment of the tourism industry in India Medical Tourism – An Introduction
It involves traveling of a patient to a different country for the treatment of a disease or an ailment or a specific condition at a lower cost with better quality of services than their home country
SAMPLE Types of Medical Tourism
Outbound
Patients travel from home country to receive medical care from other countries
Inbound
Patients from foreign countries travel for treatment to the home country
MEDICAL TOURISM MARKET IN INDIA 2014.PPT
Intrabound
Patients of the home country travel to receive medical care from a centre of excellence, which is located in some other state within the country
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High inflow of foreign patients is causing the market for medical tourism to grow strongly Medical Tourism Market – Overview (1/2)
Market Size & Growth
• Medical Tourism is a booming business and is drawing loads of overseas patients each year
INR bn
• Most of the medical tourists in India are catered by top private hospitals Top hospitals in India usually provide an end-to-end service that combines personalized services rendered in the hotel industry to top-of-the-line quality healthcare.
• Apart from the low cost of healthcare, the level of services in the leading hospitals and medical centers are at par with those being offered in the US and UK • An estimated 230,000 foreign patients travel to India for healthcare procedures every year Foreign patients are mainly from South East Asia and Middle East who travel to India for medical treatments
x6
t
Y1%
s r
x1
x2
x5 x4
x3
q p 2013
2014e
2015e
2016e
2017e
2018e
Foreign Patients Treated in India mn f X1%
e
b1
d c
a1
b a 20--
MEDICAL TOURISM MARKET IN INDIA 2014.PPT
20--
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Drivers & Challenges – Summary Challenges Drivers
Regulatory issues
High quality treatments at low costs
No provisions for follow up care
Expanding Private Healthcare Infrastructure
Unsuitable environment and problems associated with travelling
Increasing demand for fertility treatments
Lack of international accreditations
Alternative medicine
Strong competition from other Asian countries
Aesthetic pleasure Convenience to patients
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Promotional Activities
Medical Visas
Government Initiatives PPP Model for Healthcare
Fiscal Incentives
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Trends – Summary
Alliances Among Various Sectors
Government Alliances
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SAMPLE
Porter’s Five Forces Analysis
Impact x Threat of New Entrants
Impact x
Bargaining Power of Suppliers
Impact x
Competitive Rivalry
Impact x
Bargaining Power of Buyers
Impact x
Threat of Substitutes
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SAMPLE
Competitive Benchmarking (2/5)
Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3) Operating Margin
%
Net Margin
40 30
a1 b1
20 10
a2
b2
a3
b3
0
Company A
Company B
Company C
• Company A recorded operating margin of x1%, higher than that of Company B which recorded operating margin of y2% but lower than that of Company C which recorded operating margin of z3% • Net margin for Company A , Company B and Company C are a1%, b2% and c3% respectively, wherein Company A has the highest net margin among these three companies
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Public: Domestic Company – Company 1 (1/5)
SAMPLE
Company Information
Offices and Centres – India
Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange
Mumbai
Head Office
Products and Services Category
Products/Services
Key People Name
Designation
Person 1
MD and Executive Director
Person 2
VC and VC of Share Transfer Committee
Person 3
Director
Person 4
Director
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Public: Domestic Company – Company 1 (2/5)
SAMPLE Key Ratios
Financial Snapshot Total Income
d
z1
s
a3
a1
r
c b
a4
a2
e
Particulars
Net Profit/Loss
z2
z3
z4
a
q p
2010
2011
2012
2013
Financial Summary • The company earned a net profit of INR x1 mn in FY 2013, as compared to net profit of INR x2 mn in FY 2012 • The company reported total income of INR y1 mn in FY 2013, registering an increase of y2% over FY 2012 • The company earned an operating margin of z1% in FY 2013, an increase of z2percentage points over FY 2012 • The company reported debt to equity ratio of a1 in FY 2013, an increase of a3% over FY 2012
2013
2012
2011
2010
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Key Financial Performance Indicators Indicators
y-o-y change (2013-12)
Value (20/03/2014)
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
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Decline
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Public: Domestic Company – Company 1 (3/5)
SAMPLE
Key Business Segments Segment 1 C%
a1%
B%
b1%
Key Geographic Segments
Segment 2
b2%
Region 1
b3%
b4%
A%
Region 2
C%
x1%
B%
y1%
x2%
x3%
x4%
2010
2011
2012
2013
A% 2010
2011
2012
2013
Business Highlights Description
News
Overview
• The company has operations in Country A, Country B and Country C that offers treatment for acute and chronic diseases in primary, secondary and tertiary care sectors
• Specializes in 50 specialties comprising cardiac sciences, oncology, radiology and imaging, Services
gastroenterology, neurosciences, orthopedics, critical care services and in minimally invasive surgeries and transplantation
• Operates retail pharmacy outlets all across the country
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Public: Domestic Company – Company 1 – SWOT Analysis (5/5)
SAMPLE S
W
O
T
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Private: Domestic Company – Company 2 (1/5)
SAMPLE
Company Information
Offices and Centres – India
Corporate Address
Tel No. Fax No. Website Year of Incorporation
Mumbai
Head Office
Products and Services Category
Products/Services
Key People Ready Meals
Name
Designation
Person 1
Director
Person 2
Director
Person 3
Director
Person 4
Director
Instant Mixes
Others
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Private: Domestic Company – Company 2 (2/5)
SAMPLE
Shareholders of the Company
Name
Ownership Structure
No. of Shares held
Segment Segment
Segment
19.0%
23.6%
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57.4%
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Private: Domestic Company – Company 2 (3/5)
SAMPLE
Financial Snapshot Total Income
Net Profit/Loss a3
t s
Key Ratios
a2
f d
b1
b2
b3
b4
c b
p
a 2008
2009
2010
y-o-y change (2013-12)
2013
2012
2011
2010
Profitability Ratios e
a1
r q
a4
Particulars
2011
Financial Summary
Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
• The company earned a net profit of INR x1 mn in FY 2011, as compared to net profit of INR x2 mn in FY 2010
Liquidity Ratios
• The company reported total income of INR x3 mn in FY 2011, registering an increase of x4% over FY 2010
Leverage Ratios
• The company earned an operating margin of x5% in FY 2011, an increase of x6 percentage points over FY 2010 • The company reported debt to equity ratio of x7 in FY 2011, a decrease of x8% over FY 2010
Current Ratio Cash Ratio Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
MEDICAL TOURISM MARKET IN INDIA 2014.PPT
Decline
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Private: Domestic Company – Company 2 (3/5) Business Highlights Description
SAMPLE News
• Company 2 has hospital network in Country A, Country B and Country C and is primarily headquartered in Overview
Country D • Presently located in 10 cities in India having hospitals in Region 1, Region 2 and Region 3
Facilities
• Has core specialties in heart care, brain and spine, bone and joint and minimal access surgery • Provides advanced medical diagnostics and treatment with personal care
Recognitions
• Obtained NABH accreditation within one and a half years of beginning operation in India • Hospital A, Region 1, Hospital B, Region 2 has been NABH accredited
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Private: Domestic Company – Company 2– SWOT Analysis (5/5)
SAMPLE S
W
O
T
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