market research report : hospital market in india 2012
DESCRIPTION
For the complete report, get in touch with us at : [email protected] Netscribes (India) Pvt. Ltd., a knowledge consulting solutions company, announces the launch of its report – Hospital Market in India. The Indian hospital market is currently experiencing rapid growth over the last few years and it is expected to continue this trend in the near future. The report provides a snapshot of the hospital market. It begins with an introduction section which offers a study of the types and specifications of the hospital in India. The market overview section provides an insight into the current and forecasted market size of the equipment. An analysis of the drivers explains the factors for growth among which are the dearth in hospital beds in comparison to the demand it faces, growing healthcare industry, growing affordability among people, growing medical tourism, increasing lifestyle diseases, changing demographic structure and growing health insurance market. Key challenges include insufficient medical professionals, lack of investment in IT infrastructure and shortage of FDI flows in Indian hospitals. The next section provides a study on the role of government that is taking measures to raise the number of hospitals both public and private and also providing financial incentives to the private players to encourage them to establish more and more hospitals. The next section provides the Trends that are developing in the hospital market among which are growth in Secondary Care Hospitals, growing interest of foreign hospitals to start business in India, public private partnership projects, funding from private equity firms, increase in operation of mobile hospitals, domestic hospitals offshore expansion along with telemedicine and health city emergence in hospital market. The competition section gives overview of hospitals in the country that have grown over time segmented on the basis of region. It is then followed by some hospitals that have or will soon commence operation in 2012-13. Thereafter, the report highlights the features of the major players operating in the market. It includes an elaborate profile of the major domestic players in the market along with their financial analysis. Porters Five Forces Analysis has been incorporated for a brief but effective understanding of the market scenario. The strategic recommendations section focuses on some effective strategic decisions which can be taken up by companies to increase their market shares.TRANSCRIPT
Hospital Market in India
March 2012
2
SAMPLE
HOSPITAL MARKET IN INDIA 2012.PPT
Executive Summary
Market
Drivers &
Challenges
Competition
Drivers:
�Shortage in number of hospital beds
�Growing healthcare market
�Growing affordability among people
�Growing Medical tourism
� Increasing lifestyle diseases
�Changing demographic structure
�Growing health insurance market
Challenges:
�Shortage of medical professionals
� Lack of investment in IT infrastructure
�Shortage of FDI flows in Indian hospitals
Role of
Government
Trends
�The hospital market is currently worth INR xx units and is expected to reach INR yy units by 20--
�The sector is divided primarily into public and private along with NGO operated hospitals
�Constantly rising population results in perennial demand for hospital beds exceeding its supply
Major Hospitals Chains
Player A
Player B
Player C
Player D
Player E
Player F
�Secondary Care Hospitals
�Foreign Hospitals
�Public Private Partnership
�Government contribution to raise number of hospitals
�Financial incentives to private sector
�Future Plans
�Private Equity
�Mobile Hospitals
�Expansion plans to foreign shores
�Telemedicine
�Health Cities
3
SAMPLE
HOSPITAL MARKET IN INDIA 2012.PPT
•Introduction
•Market Overview
•Drivers & Challenges
•Role of Government
•Recent Trends
•Competition
•Region wise hospital profiles
•Hospitals commissioned in 2012-13
•Key Players
•Strategic Recommendation
•Appendix
4
SAMPLE
HOSPITAL MARKET IN INDIA 2012.PPT
Hospitals can be classified on grounds of ownership and
clinical operation
Clinical Basis
Ownership Basis
Public Hospitals
Run by Central Government,
State Government and local bodies
Voluntary Hospitals
Functions with public or private funds
on a non-commercial basis
Corporate Hospitals
Public limited companies formed
under Companies Act run
commercially and is likely to operate
chain of hospitals
General Hospitals
Hospitals staffed by at least two
medical officers that provides in-
patient accommodation and medical
care for more than one category of
medical discipline
Rural Hospitals
Located in rural areas permanently
staffed by at least one physician that
provides in-patient accommodation
and medical care for more than one
category of medical discipline
Specialized Hospitals
Provides medical attention for one
discipline and is administratively
attached to a general hospital
Tertiary Hospitals
State and Central government
established in their state capitals
Isolation Hospitals
Hospitals for the care of persons
suffering from infectious diseases
Source:
`
`
HO
SP
ITA
L
Teaching Hospitals
A hospital to which a college is attached
for medical/dental education
Private Hospitals
Hospitals owned and operated by
individual or group of people as
business for purpose of profit earning
5
SAMPLE
HOSPITAL MARKET IN INDIA 2012.PPT
Hospital market accounts for half of the healthcare sector's
revenues that has tremendous future growth potential
• Hospitals are a major component of the Indian Healthcare industry forming a more than 50% of healthcare sector revenues
• The hospital market is currently worth INR X1 units and is expected to reach INR X7 units by 20--
• The market is expected to grow at a CAGR of a% between 20-- to 20--
• The hospital sector is divided into of public and private � In 20-- total number of hospitals was XX of which A1 were
public operated while the remaining B1 were private operated
� In 20-- total number of hospital beds was estimated to be YY of which A2 was under public ownership and the remaining B2 was under private ownership
• With the constant rising population, demand for hospital beds far exceeds the supply� According to recent study conducted by WHO, there are
only p beds per 1000 population which is far below the target of q beds per 1000 population by the Indian Health Ministry
• A huge shortage of beds is a major driver for investment in the hospital industry� There is a trend of growth in speciality and multi speciality
hospitals in the country
Market Overview Market Size and Growth – Private
Source:
0
2
4
INR tn
a
20--e
X7
20--e
X6
20--e
X5
20--e
X4
20--e
X3
20--
X2
20--
X1
100%
Hospital Beds A2% B2%
Hospitals A1% B1%
A B
Hospital Market Segmentation – 20--
6
SAMPLE
HOSPITAL MARKET IN INDIA 2012.PPT
Drivers & Challenges – Summary
Drivers
Shortage in number of hospital beds
Growing healthcare market
Growing affordability among people
Growing medical tourism
Growing health insurance market
Increasing lifestyle diseases
Changing demographic structure
Challenges
Shortage of medical professionals
Lack of investment in IT infrastructure
Shortage of FDI flows in Indian
hospitals
7
SAMPLE
Role of Government: Summary
Role
of
Government
Direct and Indirect
Initiatives
Future Plans Financial Incentives
HOSPITAL MARKET IN INDIA 2012.PPT
8
SAMPLE
Trends - Summary
`
Secondary Care Hospitals
Foreign hospitals are showing interest to penetrate Indian market
Mobile Hospitals
Private Equity
Indian hospitals expansion plans to foreign shores
Trends
Telemedicine
Health Cities
Public Private Partnerships
HOSPITAL MARKET IN INDIA 2012.PPT
9
SAMPLE
Major Public Companies - Summary
-700,000,000
-600,000,000
-500,000,000
-400,000,000
-300,000,000
-200,000,000
-100,000,000
0
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
19,000 19,500 20,000 20,500 21,000 21,500 22,000 22,500 23,000 23,500
Revenue
(INR mn)
Net Profit
(INR mn)
B A
Player A Player B
Size of bubble represents
Market Capitalization in INR xx
HOSPITAL MARKET IN INDIA 2012.PPT
10
SAMPLE
Public: Domestic Company – Company A Ltd (1/4)
Key People
Source:
Products and Services
Company Information
Corporate Address
Company A
Address Line 1
Address Line 2
City
Tel No. xxx
Fax No. yyy
Website www.companyA.com
Year of Incorporation 19--
Ticker Symbol mmm
Stock Exchange ---
Name Designation
Person A Founder, Executive Chairman
Person BManaging Director, Executive
Director
Person C Chief Executive Officer
Person D Group President
Category Products/Services
Healthcare Facilities
Healthcare
Consultation
Others
Hospital NetworkCity O
HOSPITAL MARKET IN INDIA 2012.PPT
Head Office and Hospital Network– India
City MHead Office
City N
11
SAMPLE
Key Ratios
Financial Summary
• The company incurred a net profit of INR Y4 unit in FY 20--, as
compared to net profit of INR Y3 in FY 20--
• The company reported total Income of INR X4 in FY 20--, registering
an increase of m per cent over FY 20--
• The company earned an operating margin of n per cent in FY 20--, an
increase of o percentage points over FY 20--
• The company reported debt to equity ratio of p in FY 20--, an
increase of q per cent over FY 20--
Particulars y-o-y change
(20– to --)20-- 20-- 20-- 20--
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
Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved Decline
Financial Snapshot
Source:
Financial Summary
Indicators Value (dd/mmm/20--)
Market Capitalization (INR)
Total Enterprise Value (INR)
EPS (INR)
PE Ratio (Absolute)
Net Profit / Loss
Total Income
0
5
10
15
20
25
0.0
0.5
1.0
1.5
2.0
X4
20--
Y3
X3
20--
Y2
X2
20--
Y1
X1
INR unit INR unit
20--
Y4
HOSPITAL MARKET IN INDIA 2012.PPT
Public: Domestic Company – Company A Ltd (1/4)
12
SAMPLE
Source:
Key Business Segments Key Geographic Segments
Business Highlights
Description News
Overview • Treatment facilities in fields of cardiology, oncology, neurology, orthopedics
Services• Telemedicine services, education, training programs & research services and a host of
other non-profit projects
B1
A1B4
A4
20--
C3B3
A3
20--
C2B2
A2
20--
C1
20--
C4 0
20
40
60
80
100
20--
100%A B C
The company
operates only
in Country A
HOSPITAL MARKET IN INDIA 2012.PPT
Public: Domestic Company – Company A Ltd (1/4)
13
SAMPLE
Appendix
Ratio Calculations
Operating Margin(Operating Income/Revenues)*100
Net Margin (Net Profit / Revenues) *100
Profit Before Tax Margin(Income Before Tax / Revenues *100
Return on Equity (ROE) (Net Income / Shareholders Equity)*100
Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100
Return on Working Capital(Net Income / Working Capital) *100
Return on Assets (Net Income / Total Assets)*100
Return on Fixed Assets (Net Income / Fixed Assets) *100
Operating Costs (% of Sales)(Operating Expenses / Sales) *100
Administration Costs (% of Sales)
(Administrative Expenses / Sales) *100
Interest Costs (% of Sales) (Interest Expenses / Sales) *100
Ratio Calculations
Current RatioCurrent Assets / Current
Liabilities
Cash Ratio
{(Cash & Bank Balance +
Marketable Securities) / Current
Liabilities)}
Debt to Equity Total Liabilities / Shareholders
Equity
Debt to Capital Ratio{Total Debt / (Shareholders
Equity + Total Debt)}
Interest Coverage Ratio EBIT / Interest Expense
Fixed Asset Turnover Sales / Fixed Assets
Asset Turnover Sales / Total Assets
Current Asset Turnover Sales / Current Assets
Working Capital Turnover Sales / Working Capital
Capital Employed Turnover Sales / Shareholders Equity
14
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