Presented by:Niraj Dadhich

Kalpana KumariM. Nitinkumar

&Someritu Bhattacharjee

Team A1 PresentsCorporate Story

OnFortis Healthcare Limited

Meaning of logo

"creating a world-class integrated healthcare delivery system in India, entailing the finest medical skills combined with compassionate patient

care".

vision

Top Management

Mr.ShivinderMohanSingh Mr.MalvinderMohanSingh, MD Chairman

22,April,1999- Mohali-The foundation stone was laid.

02,Nov,1999- Mohali-Commencement of construction.

22,May,2000- Mohali-Dedication ceremony.

28,June,2001- Mohali-Inauguration- fortis heart institute.

3,Nov,2001- Mohali- Ipd inauguration.

19,Nov,2001-Mohali-Fortis inn started.

21,Aug,2002-Mohali-multispeciality hospital inaugurated.

27,July,2003-Amritsar-hospital inaugurated.

FORTIS TIMELINE

29,Oct,2003-Jessa Ram agreement signed.

7,April,2004-Jessa Ram construction started.

17,July,2004-Noida-1st surgery done.

5,Aug,2004-Launch of fortis corporate logo.

15,Oct,2004-Jessa Ram completed.

7,Nov,2004-Noida inaugurated.

3,June,2005-Mohali centre inaugurated

8,June,2005-Shalimar Bagh.

1,July,2005-Cardiac soft launch.

20,Nov,2005-Noida cardiac program launch.

2005-Fortis Escorts acquisition.

2,Aug,2007-Jaipur Fortis Escorts hospital inaugurated.

27,Aug,2007-Mohali hospital receives JCI accreditation.

7,Sep,2007-Gurgaon ground breakin ceremony.

2007-Fortis acquires Malar hospital.

2009-Fortis buys Wockhardt hospitals

FORTIS

NETWORK

FHL differentiated itself with its contemporaries in India by adopting unique hospital design, services, and

programs that comply with international standards. The demographic shift and higher longevity of Indian population

offered tremendous opportunities to many private corporate hospitals. Fortis was one of them to grab the

opportunity.

What FORTIS did?

MARKETING

Marketing Strategy

The company launched an aggressive outdoor campaign in the year 2009 in the NCR region. It won the best outdoor campaign by 4P’ s business marketing & advertising magazine for the year 2009.

Targeting Medical Tourism-2bn industry by 2010

Using brand equity of Escorts for the cardiac care market

The company is also entering into new satellite and heart command centre arrangements and promoting it

Fortis took the following steps:-

FHL ensured to establish good and positive image about the hospital and get feedback.

Organized CME's / Seminars and lectures for promotion of the activities and services of the medical faculty and specialties.

Developed and nurtured new market and client support and coordination activities.

Interact with physicians on a regular basis.

Identify and map the potential of target customers.

Dr Saumitra Bharadwaj, marketing manager at Fortis hospital, NOIDA, hospitals believes that hospitals should create goodwill for themselves and should not completely rely on advertisements.

Fortis believes patients are the best brand ambassadors so they regularly update their site with the testimonials of their patients.

On regular basis Fortis takes feedback from patients and visitors.

Fortis was the first hospital to organize an exhibition in the National Capital Region, wherein the general public could visit all departments of the hospital and get answers from experts. Secondly, Fortis launched a dialysis technician program for women from the weaker section of society in which they were given free training by the hospital and they will be assimilated in the hospital itself.

Apart from organizing CMEs almost every week, camps, there’s a special OPD where consultants charge Rs 100 only.

They have patient coordinators , counselors, ward in-charge etc to take care of all need of patients.

Fortis was the 1st hospital to open a facility which is totally dedicated to women.

It is called as FORTIS LA FEMME

“Fortis La Femme. A unique facility, dedicated to the

healthcare of a woman. Spanning her entire life, from birth to post menopause. Because her needs

are very special.”

This the motto and slogan of FORTIS LA FEMME

This facility is located at Greater Kailash.

The services which are provided by this hospital are:

Obstetrics

Cosmetic surgery

Women’s wellness program

In Vitro Fertilization

Laparoscopic surgery

Neonatology

Gynecology

These are the main services apart from these there are many other services and programs

Non Medical Facilities

Gift Shops

Coffee Shop

Foot & Hand Impression

Chocolate Shop

Other marketing STUNTS

Fortis launched website where patients can get their query answered online and patients welcomed this idea with a good and huge response.

Fortis has a joint venture with DLF,in which it holds a majority stake of 74%.

Advertisement in a major motion film.

Flower of Service Industry

8 p’s of Fortis healthcare

SWOT Analysis

Top management.

IT enabled HIS & PACS Systems allow speedy access to patient information from anywhere within the network and hence speedier diagnosis.

Patient's nursing is maintained at internationally accepted norms.(ISO certification)

Our hospitals have large bed-to-floor space ratios in patient rooms, lending a healing environment to patients

Strengths

Huge losses since inceptions

Increasing cost of curative medical services

weaknesses

Healthcare – 2.8 trillion(USD) industry Prominence of Private Sector

Improvement in life expectancy and Change in disease profile

Quality led demand in healthcare industry

Focus on Public Private Partnerships (PPP)

Increased focus on Medical Value Travel (source of foreign exchange)

Opportunities

long gestation period

Shortage in medical education and training facilities

Availability of funding for healthcare

Increasing Penetration of Health Insurance

increased competition in new or existing territories, integration of new facilities and teams into existing network, effective handling of clinicians relations.

Threats

Fortis Operational Management and Structure

The Fortis hospital network is based on a “hub and spoke” model with multispecialty “spoke” hospitals providing comprehensive health care services and “hub” hospitals with sub specialty services in one or more areas. This model helped Fortis provide comprehensive health care services from within its own network to a large geographical area. To make optimal use of the intra-network referral model, the number of patients referred for surgeries from within the network versus those who came from outside were constantly monitored.

Since the beginning of FORTIS, numerous corporate social initiatives along with “Fortis Center For Community Initiative” (FCCI) have been launched. “The Fortis Charitable trust” and “The Fortis Charitable Foundation” function as its operating arms. Some of the taken initiatives are:

FORTIS’ CHIRANJEEVI SCHEME

FORTIS’ HIV/AIDS AWARENESS SCHEME

WORLDCLASS HEALTHCARE AT GRASSROOT LEVEL Saarthak, spreading hope beyond cancer

Sahayak, the courage to face life on dialysis

GIFTING A GIRL A BETTER TOMORROW: Fortis’s Chetna initiative

CSR

Fortis health care believes to have highly motivated

and committed employees by implementing the best in class human resource

application in the healthcare industry.

Employing qualified manpower

Delegating power in a simple organizational structure

Effective training and development program

Flexible career opportunities

Remuneration policy

Recruitment process

Common culture

HR Strategies

Organizationalculture

“We are what we repeatedly do, excellence, then is not an act,

but a habit" - Aristotle.

culture building mantra, therefore, is to "Walk the Talk" - everyday, in every way, in whatever we do.

Fortis Healthcare culture 

structured induction

The Fortis Healthcare Ambassador program.

Social interaction

Efforts by FORTIS

Management structure

Managing Director

CEO CFOPresident

strategy & OD

President- medical strategy and quality

“LIFE BLOOD AND NERVE CENTRE OF BUSINESS”

Profit & LossAccount

Particular March 31, 2009 (Rs. in lacs)

March 31, 2008(Rs. In lacs)

March 31, 2007(Rs. In lacs)

INCOMEOperating IncomeOther Income

63,054.482,839.30

65,893.78

50,709.524,089.38

54,798.90

51,943.00597.51

52,540.51

EXPENDITUREMaterials ConsumedPersonnel ExpensesOperating ExpensesSelling, General and Administrative Expenses

18,953.8414,736.1714,329.256,449.24

54,468.50

16,147.8113,835.8312,047.606,592.00

48,623.24

17,727.0013,448.9410,573.964,638.37

46,388.27

Profit before Financial Expenses, Depreciation and Amortization 11,425.28 6,175.66 6,152.24

Financial Expenses 4,366.07 5,547.74 6,600.43

Profit before Depreciation and Amortization 7,059.21 627.92 (448.19)

Depreciation and Amortization 4,874.00 4,682.48 8380.42

Profit / (Loss) before Tax and Prior Period Items 2,185.21 (4,054.56) (8,828.61)

tax 410.91 1954.91 727.57

Net Profit / (Loss) after Tax and before Prior Period Items 1,774.30 (6,009.46) (9,556.55)

Prior Period Items 648.13 (11.38) 182.95

Net Profit / (Loss) for the year 2,406.37 (5,998.08) (9,739.50)

Net Profit / (Loss) before Minority Interest and share in losses of Associate CompaniesLess: Profits/ (Losses) attributable to Minority InterestLess: Share in current year losses of Associate Companies

274.1850.30

(504.16)54.43

62.32(9.77)

Net Profit / (Loss) attributable to the shareholders of Fortis Healthcare

2,081.89 (5,548.35) (9,811.59)

Add: Balance brought forward from previous year (26,877.18) (21,328.83) 11,517.24

Net Profit / (Loss) carried over to the Balance Sheet (24,795.29) (26,877.18) (21,328.83)

Particular March 31, 2009

(Rs. in lacs)

March 31, 2008

(Rs. In lacs)

March 31, 2007

(Rs. In lacs)

SOURCES OF FUNDS

Shareholders’ FundsShare CapitalShare Application Money Pending AllotmentReserves & Surplus

23,870.65

-107,986.29131,856.94

23,826.65

15,000.00100,561.12139,387.77

20,767.01

-37,447.5858,214.59

Minority interest 2,157.44 2,141.83 1,935.09

Loan FundsSecured LoansUnsecured Loans

35,586.9012,313.3047,900.20

27,540.5510,005.1537,545.70

35,571.6223,648.1159,219.73

Deferred Payment Liabilities creditDeferred Tax Liability (Net)

-122.46

249.67-

499.33-

TOTAL 182,037.04 179,324.97 119,868.74

APPLICATION OF FUNDS 2008-09 2007-08 2006-07

Goodwill 39,606.16 39,269.48 38,171.00

Fixed AssetsGross BlockLess : Accumulated depreciation and amortizationNet BlockCapital Work in Progress including Capital Advances

115,576.2833,494.8882,081.4018,363.32

100,444.72

112,569.3829,237.2683,332.1212,001.6895,333.80

65,926.5525,478.6240,447.9310,400.9050,848.83

InvestmentsDeferred Tax Assets (Net)

5,412.57-

3,306.2984.68

44.191,943.68

Current Assets, Loans & AdvancesInventoriesSundry DebtorsCash and Bank Balances Other Current AssetsLoans and Advances

Less : Current Liabilities & ProvisionsCurrent LiabilitiesProvisions

Net Current Assets

1,326.0613,350.765,794.921,096.4314,784.9936,353.16

19,348.68 5,276.2424,624.9211,728.24

1,234.55 9,590.661,606.421,271.87

18,463.5232,167.02

12,452.415,333.95

17,786.3614,380.66

1,083.849,182.973,068.051,026.359,121.83

23,483.04

10,646.155,313.30

15,959.457,523.59

Miscellaneous Expenditure 50.06 72.88 8.63

Profit and Loss Account 24,795.29 26,877.18 21,328.83

TOTAL 182,037.04 179,324.97 119,868.74

Cash flow statement

Particular 2008-09 2007-08

Cash flow from operating activities (A) 4,799.09 1,160.5

Cash flows from investing activities(B) (9,660.16) (20,079.34)

Cash flows from financing activities(C) 9,226.42 18,845.71

Net increase / (decrease) in cash and cash equivalents (A + B + C)

4,365.35 (73.13)

Total cash and cash equivalents at the beginning of the year

1,463.04 1,536.17

Add: Cash and cash equivalents in respect of subsidiaries acquired

(100.67) -

Cash and cash equivalents at the end of the year

5,727.72 1,463.04

Cash flow statement

Current ratio

year Ratio

2006-07 2.21

2007-08 2.56

2008-09 1.89

2006-07 2007-08 2008-09 0

0.5

1

1.5

2

2.5

3

Ratio

Ratio

Debt-equity ratioyear Ratio

2006-07 1.01

2007-08 0.27

2008-09 0.36

2006-07 2007-08 2008-09 0

0.2

0.4

0.6

0.8

1

1.2

Ratio

Ratio

Interest coverage ratioyear Ratio

2006-07 0.93

2007-08 1.11

2008-09 2.62

2006-07 2007-08 2008-09 0

0.5

1

1.5

2

2.5

3

Ratio

Ratio

ROI (after tax)year Ratio

2006-07 -24.62%

2007-08 -5.25%

2008-09 1.63%

2006-07 2007-08 2008-09

-30.00%

-25.00%

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

Ratio

Ratio

Revenue trendyear Revenue (in

lacs)

2005-06 29,255.21

2006-07 51,943.00

2007-08 50,709.52

2008-09 63,054.48

2005-06 2006-07 2007-08 2008-09 0.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

70,000.00

Revenue (in lacs)

Revenue (in lacs)

24.3%

77.6%

2.4%

Competitors analysis

Name of the company

Market capitalization(Rs. In crore)

Fortis healthcare 5,770.70

Apollo hospitals 4,462.10

indraprastha 415.74

Fortis

hea

lthca

re

Apollo

hos

pitals

indra

pras

tha

0.00

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

Market capitalization (Rs. In crore)

Market capitalization (Rs. In crore)

Name of the company

Total Assets (Rs. In crore)

Fortis healthcare

1,085.03

Apollo hospitals

1,820.33

indraprastha 171.07

Fortis healthcare Apollo hospitals indraprastha 0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

1,600.00

1,800.00

2,000.00

Total Assets (Rs. In crore)

Total Assets (Rs. In crore)

Name of the company

Net worth (Rs. In crore)

Fortis healthcare

800.07

Apollo hospitals 1,370.86

indraprastha 121.80

Fortis healthcare Apollo hospitals indraprastha 0

200

400

600

800

1000

1200

1400

1600

Net worth (Rs. In crore)

Net worth (Rs. In crore)

Mergers & Acquisition

Fortis acquired Escorts in 2005.

2007-Fortis acquires Malar hospital.

Fortis Healthcare buy 10 hospitals from Wockhardt Hospitals

for $205.7 million.

After buying 24-percent stake in Singapore’s Parkway Holdings for $685.3 million, Fortis Healthcare has become the largest hospital chain in Asia.

Bibliography

www.fortishealthcare.comwww.business-standard.comwww.expresshealthcaremgmt.c

omwww.businessweek.comwww.google.com &

3 IDIOTS.

Thanks For Watching…

THE END