1. Hospital Market - India
February 2009

2. Executive Summary
Hospital industry accounts for ~x% of healthcare sector revenues
Market Estimated to be worth USD XX bn in 2008
Forecast to reach USD XX bn by 2010 growing at y% annually
Drivers: Challenges:
Poor public healthcare infrastructure High start-up cost and capital
LE
Drivers & expenditure
Increasing spend on healthcare services
Challenges Shortage of medical professionals
P
Increase in lifestyle-related diseases
Medical tourism
Competition S M
Nascent but growing medical insurance
A
Private sector dominates with x% market share, led by groups like ABC, EFG and XYZ
New entrants include domestic firms like AA, BB, CC and DD
Foreign entrants exploring the market for partnerships, acquisitions and greenfield projects
Favourable policies on FDI and taxations will increase foreign participation
Private equity investing significantly; investment set to increase, especially in regional hospitals
Future Large hospital groups making strategic acquisitions but future opportunities may be limited
Outlook Evolving concept of “health cities”, which have scale and provide a host of satellite services
Emergence of telemedicine for rural areas with participation from private sector and government
Despite increase in number of beds, supply constraints will remain in top cities
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3. •Market Overview
•Drivers & Challenges
•Competition
•Future Outlook
HOSPITAL MARKET - INDIA.PPT 3

4. Indian Hospital Industry accounts for half of the healthcare sector's
revenues and growth is estimated at y% annually
Overview Market Size and Growth
•Hospitals are a major component of the Indian Diagnostics
Healthcare industry contributing to x% of Pharma w% Insurance &
z% Medical Equipment
industry revenues x%
•Estimated to be worth USD XX bn in 2008
•Growing at y% p.a.
•Expected to reach USD XX bn by 2010
•Fragmented with a large number of
PLE y%
Hospital
independent, privately run hospital and
healthcare centres
•Demand for healthcare far exceeds supply due
to dismal performance by the government SAM 35
30
USD bn
a%
X
Y
Z
25 W
•A huge shortage of beds is a major driver for V
20
investment in a growing industry 15
Specialty hospitals in particular are expected to 10
grow faster than overall industry due to rise in
5
heart diseases and cancer
0
2006 2007 2008 2009 2010
Source:
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5. Drivers & Challenges
Drivers
Dismal government performance in
providing healthcare infrastructure Challenges
Growing demand for quality care and High start-up cost and capital
increasing ability to pay expenditure
Mounting instances of lifestyle
Shortage of medical professionals
diseases requiring hospitalization
Rapid growth of India as a destination
for medical tourism
Increasing penetration of medical
insurance
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6. Private players dominate the hospital market and with more entrants
and investments, this dominance is likely to continue
Competition Public vs. Private sector share
•Hospital industry is dominated by the private
sector with x% market share Public Sector
•Hospital industry in India is extremely y%
fragmented due to the large number of
nursing homes and small- to mid-sized
hospitals
•Large private players are leading industry
PLE x%
M
Private Sector
growth
competition is limited due to the large
untapped potential of the market
SA
•New players are also entering the market and
New Market Players
• ABC
Domestic International
• AA, USA
• EFG • BB, Dubai
• XYZ • CC, Singapore
• DD, USA
• EE, USA
Source:
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7. Hospital industry in India has a bright future and will see significant
investments from foreign firms, private equity and domestic players
Government policies on FDI and tax are encouraging foreign companies to enter
the market
Private equity firms are investing significantly in hospitals, both large corporate
chains and standalone regional hospitals
Large hospital chains use acquisitions that offer growth at a lower cost but future
opportunities may be limited
Future
Outlook `
Major hospital chains are investing in “health cities”, which have scale and provide
a host of satellite services
Telemedicine is emerging as a feasible option for public and private sector facilities
to provide basic medical care to rural areas
Despite increase in number of beds with significant contribution by top four private
groups, supply constraints will remain in top cities
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8. Thank you for the attention
The Hospital market report is a part of Netscribes’ Healthcare Industry Series.
For more detailed information or customized research requirements please contact:
Natasha Mehta, CFA Subhash Chennuri
Phone: +65 9651 6382 Phone: +91 98190 59664
E-Mail: natasham@netscribes.com E-Mail: subhashr@netscribes.com
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