Operation Strategy for Appollo

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BY GROUP- 8 :
MADHUMANTI SAMADDAR (12EX-023)
PANKAJ KUMAR (12EX-060)
--STUDENTS OF IMT GHAZIABAD PGDM EXECUTIVE BATCH--
BY GROUP- 8 :
MADHUMANTI SAMADDAR (12EX-023)
PANKAJ KUMAR (12EX-060)
--STUDENTS OF IMT GHAZIABAD PGDM EXECUTIVE BATCH--

OPERATIONAL STRATEGY ANALYSIS
APOLLO HEALTHCARE
25TH FEBRUARY, 2013
OPERATIONAL STRATEGY ANALYSIS
APOLLO HEALTHCARE
25TH FEBRUARY, 2013
0+3669+
INDUSTRY OVERVIEW
The healthcare industry forms the backbone of any nation's well-being and can be broadly divided into five segments namely hospitals, pharmaceuticals, diagnostics, medical equipment & supplies and medical insurance. The Indian healthcare industry is highly fragmented and dominated by private players. It has witnessed a massive spurt in healthcare spend and is expected to reach US$100billion1 by 2015 from the current ~US$65 billion in 2012, growing at a CAGR of 20% a year. India currently faces a chronic shortage of healthcare infrastructure, especially in rural areas and Tier II and Tier III cities, and it is expected that India will have potential requirement of 1.75 million new beds by the end of 2025. In the present scenario, high entry barriers such as huge capital requirements and a cash crunch amongst most big business houses will favor existing players to pursue accelerated growth in the segment. The hospital segment holds a major share of the healthcare industry and is outpacing the overall industry growth. The size of the private hospital industry in India is estimated to be around US$25billion as per Assocham and growing at a CAGR of 20%. The demand for hospital services has been consistently soaring in the country, with every class of the society demanding better quality and standards of healthcare realizing the continuous growing demand, many INDUSTRY OVERVIEW

The healthcare industry forms the backbone of any nation's well-being and can be broadly divided into five segments namely hospitals, pharmaceuticals, diagnostics, medical equipment & supplies and medical insurance. The Indian healthcare industry is highly fragmented and dominated by private players. It has witnessed a massive spurt in healthcare spend and is expected to reach US$100billion1 by 2015 from the current ~US$65 billion in 2012, growing at a CAGR of 20% a year. India currently faces a chronic shortage of healthcare infrastructure, especially in rural areas and Tier II and Tier III cities, and it is expected that India will have potential requirement of 1.75 million new beds by the end of 2025. In the present scenario, high entry barriers such as huge capital requirements and a cash crunch amongst most big business houses will favor existing players to pursue accelerated growth in the segment. The hospital segment holds a major share of the healthcare industry and is outpacing the overall industry growth. The size of the private hospital industry in India is estimated to be around US$25billion as per Assocham and growing at a CAGR of 20%. The demand for hospital services has been consistently soaring in the country, with every class of the society demanding better quality and standards of healthcare realizing the continuous growing demand, many investors worldwide have expressed their keenness towards investing in the Indian hospital service market. The country is making strides in the right direction as evident from the 100% allowance of FDI in the hospital segment under the automatic route, since January 2000.

APOLLO HEALTHCARE
Apollo Hospitals is a major hospital chain based in Chennai, India. It was founded by Dr. Prathap C. Reddy in 1983.

The Company owns and manages 41 hospitals in and around India. It also has presence in nursing and hospital management colleges, pharmacies, diagnostic clinics, medical transcription services, third-party administration and telemedicine. In February 2013, Apax Partners LLP sold half its stake in the Company to Oppenheimer Funds Inc.

Several of the group's hospitals have...
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