fortis - going international

8/7/2019 FORTIS - GOING INTERNATIONAL

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GROUP II

Tinkesh Bhatia (106)Shrikar Rawalpelli (143)

Elroy Rodriques (146)

Payal Shah (150)

Nandini Som Mathur (154)

INTERNATIONAL MARKETING


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INDIAN MEDICAL INDUSTRY

y India is the fourth largest market in the Asia Pacific region.

y Accounts for almost 10% of global drug production by

volume.

y Private Sector accounts for 65% of primary care and 40%

hospitals.

y OTC medicines will increase from $15.7 b to $18.1

Source : BMI


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HOSPITALS: Indias Healthcare Boom

y The Healthcare delivery market in India pegged at around

US$ 45 billion in 2012.

y Opportunity in healthcare being significantly leveraged by

private healthcare providers.

yGlobally healthcare is typically provided through a largelygovernment-funded public system, the Indian healthcare

industry is dominated by the private sector.

Source : DATAMONITOR


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FORTIS HEALTHCARE LTD

y Incorporated in the year 1996 and is promoted by MalvinderMohan Singh.

y First Hospital at Mohali in year 2001.

y Fortis Healthcare network encompasses 46 running hospitals.

y 7 more hospitals planned to start by 2012 .

y Ambition of owing 6000 beds and becoming a US$ 1 billionrevenue earning company.


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INTERNATIONAL MARKETINGDECISIONS


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OBJECTIVE

y Explore new markets .

y

Diversify business & explore new opportunities.

y Increase Topline and Bottomline.

y Establish Fortis as a global player in the healthcare

industry.


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INTERNATIONALIZATION STRATEGY

y Organic Growth strategy in emerging economies.

y Joint Ventures with leading Hospital chains in the region.

y Acquisition of hospitals in ASIA.

y Promote Medical tourism in developed economies.

y Obtain Market access through Management Contracts.


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INTERNATIONAL ENCOUNTERS

y Acquired 25.3 % stake in Parkway holdings but exited due to

very high valuations.

y Acquired controlling stake in Clinique Darn, a Mauritius

based private hospital for $ 7 Mn.

y Acquired an under construction specialised cancer hospital inSingapore.


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WHY INDIAN SUB-CONTINENT ?

y Strong and Emerging economies.

y Increasing income of middle class.

y Increased focus on healthcare sector.

y Greater proportion of public funds being directed to

healthcare projects.


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MARKET ENVIRONMENT IN

INDIA-SUBCONTINENT


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POLITICAL ENVIRONMENT

y Bangladesh has had a democratic political framework since

1991.

y Amicable relations with the world's major powers.

y End of conflict in SRI LANKA.

y Unstable political environment in Pakistan.

Source : BMI


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ECONOMIC ENVIRONMENT

y Private consumption in Bangladesh generates 75% of GDP.

y Ongoing privatization program in Bangladesh is creating

opportunities for Foreign Investors.

y GDP growth of Sri-Lanka poised at 7% and is expected to be

consistent.

y GDP growth of Bangladesh is expected to grow at the rate of

5% - 6%.

Source : BMI


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SOCIAL & DEMOGRAPHIC ENVIRONMENT

y Approx 60% - 65 % of population in the age group of 15-64years in the sub continent.

y Approx 6.5 % of the population in the age group of 65 yearsand above in the region.

y Poor Social infrastructure in Bangladesh.

y High Literacy rates , low mortality rates reflects Sri Lankasprogress.

Source : BMI


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ENTRY STRATEGY

y Acquisition of hospital or chain of hospitals in the region.

y JV with strong players in new markets.

y Partnership with government for PPP projects.

y Innovative tie ups & management contracts.


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WHY PARTNER WITHFORTIS

y Practical experienced in solving the problem with no added costlyfrills.

y Responsive understand the need to support their business partnersquickly.

y Innovative access to a broad range of technology options to create anoptimal solution.

y Flexible customized solutions to suit your need.

y Competitive world class development capability, particularly in nicheapplications


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SUCCESS DRIVERS

KEYDIFFERNTIATORS

STRONG IT SYSTEM

BRAND

OPERATIONAL

SYNERGIES

BANDWIDTHFOR FUTURE

GROWTH


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OPPORTUNITYFOR FORTIS

y Lack of basic healthcare : Low Spend on Healthcare per

person in countries like Bangladesh & Sri Lanka.

y

Countries like Bangladesh, Sri Lanka do not have access toquality medical care: They will necessarily have to look at

other countries for their healthcare needs.

y Costs and quality will be of equal concern to these countries:

They will look for the right quality and yet do not have theability to pay first world prices.

y The Fortis offering: First world quality at third world prices.


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MEDICAL TOURISM


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WHY MEDICAL TOURISIM

y Industry rapidly growing and being developed by both public

& private organizations.

y

Forecast to grow to 40 million trips or 4% of global tourismvolume.

y India a new entrant and industry expected to grow at a rate

of 30%.

y Forecasted to become a $2.3 Billion business for India.

Source : Frost & Sullivan


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PRODUCT MIX

y Open Heart surgery

y Cranio Facial Surgery and Skull base

y Neuro Surgery with Hypothermia

y Complex Spine surgery with implantsy Biopsy Simple Brain Surgery

y Bone Marrow Transplants

y Dental Surgery

y Plastic Surgeries

y Health & Wellness packages


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SEGMENTATION

y Working & Middle Class families.

y Patients unable to afford treatments.

y Wealthy Patients for Luxury treatments.

y Uninsured & Underinsured Individuals.


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TARGET MARKETS

USA UK

CANADAMIDDLE

EAST


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STRATEGY IN DEVELOPED NATIONS

y Stepping up their presence in countries with established

Medical Tourism and those with potential in the near term

future.y Tying up with health insurance companies in the UK, US.

y Accreditation by the joint Commission International

Accreditation agency(USA) & Trent International

Accreditation ( UK).y Tying up with Travel insurance companies.


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PRICING STRATEGY

US THAILAND UK INDIA

Heart Surgery 40,000 7500 23,000 6000

Bone Marrow

Transplant

2,52,000 - 1,50,000 26,000

Liver Transplant 3,00,000 - 2,00,000 69,000

Knee Replacement 20,000 8000 12,000 6,000

Price in USD


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PROMOTION STRATEGY

y Provide group discounts to medical tour operators.

y Provide options to Tourist across various FORTIS Hospitalsin ASIA.

y Promote Health & Wellness packages in magazines.

y Use Social Media for promotion of Health & Wellness

packages.


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VALUE PROPOSITION

y Centers of excellence providing specialty high quality

treatments.

y Quality Healthcare at fraction of the cost.

y Availability of skilled doctors and hospitals.

y State-of-the-art medical establishments of great repute.


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SYNERGY

y Pan India expansion is progress with hospitals being set up at

all Metros in INDIA.

y

Also Setting up of boutique hospitals in India and Asia.y Acquisition of hospitals in nationals like Singapore &

Mauritius help in providing more options to medical tourist.

y Focus on Medical tourism and promote Fortis Brand in Asia.

y Leverage on the Hospital network to promote Medicaltourism.


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EXPECTED OCCUPANCIES

0

10

20

30

40

50

60

70

80

90

FY 08 FY 09 FY 10 FY 11 (Est)

Occupancy in %

occupancy


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EXPECTED REVENUES

659

989 10971316

164632

4978

132

247

FY 09 FY 10 FY 11 ( Est) FY 12 ( Est) FY 13 ( Est)

Hospital Medical Tourism

In crore


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THANK YOU

fortis - going international

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