It is no news that the Indian healthcare industry is going strong even in the wake of global meltdown. While every other industry is losing its sheen, healthcare is expected to reach newer heights in the coming years. According to the recent Indian Brand Equity Foundation (IBEF) report, the Indian healthcare market is currently estimated at $ 34.2 billion and private healthcare is estimated to be the largest component of the healthcare sector by 2012 which is expected to double to $ 38 billion by 2012. In the race to grab the largest piece of the healthcare pie, one of the leading corporate Groups with a strong chance is Fortis Healthcare.
Fortis Healthcare is a growing healthcare provider in India. Fortis Healthcare has established a network of world-class super speciality hospitals linked with a larger network of Multi Speciality Hospitals to provide high quality healthcare to the people of India, in a hub and spoke model.
This model has allowed the group to serve the comprehensive medical needs of patients in their local communities at its multi-speciality facilities. The hubs focus on super-speciality 'centres of excellence.' Patients in need of such medical intervention are referred to these hubs from the multi-speciality facilities in the region. This model has allowed the Group to efficiently deploy resources across its network as its super-speciality expert clinicians provide expertise and support to its multi-speciality hospitals. It also serves to increase the quality of care throughout the network.
Unlike most healthcare providers, Fortis has opted for a staff model for doctors in its key specialities. This means that the doctors are full-time employees of Fortis and not empanelled with different hospitals. This gives both doctors and patients a distinct advantage. The doctors do not have to run from hospital to hospital and are encouraged to enhance their knowledge through research or attending conferences while the patients have the benefit of access to doctors as needed. As full-time employees, the team has a strong commitment, leading to better patient care and quality.
During the global meltdown, the group has seen an opportunity in medical tourism. Huge recession in the US and developed countries will lead to cost cutting including their exorbitant healthcare costs. This will have a positive impact on the Indian healthcare industry. More international patients are likely to travel to India from these countries for their healthcare needs, which will provide further impetus to the domestic healthcare sector.
The group plans to have 35-40 hospitals comprising 6,000 beds by 2012. The total investment for this is expected to be around Rs 2,700 crore of which funding requirements from Fortis shall be around Rs 1,500 crore (as the additional capacities shall be in the same mix of greenfields, joint ventures, O&M and acquisitions).
Fortis acquired Escorts Healthcare System in 2005 and today runs one of the largest Cardiac Programmes in the world. The amalgamation of the Fortis-Escorts competencies is setting benchmarks for the way healthcare is delivered in India
Results Q3FY09:
Net sales up 30.3% at Rs 158.41 cr vs Rs 121.55 crNet profit of Rs 6.8 cr vs a net loss of Rs 19.36 cr. Operating profit up 363% at Rs 22.2 cr vs Rs 4.79 crOPM at 14.03% vs 3.95%
Recent developments
In its first ever acquisition overseas, Fortis announced that it has bought a controlling stake in Mauritian hospital, Clinique Darne, in a joint venture with the leading Mauritian industrial group CIEL that operates in agro-industry, textiles and equity investment.
In its first ever acquisition overseas, Fortis announced that it has bought a controlling stake in Mauritian hospital, Clinique Darne, in a joint venture with the leading Mauritian industrial group CIEL that operates in agro-industry, textiles and equity investment.
Future Plans:
Fortis Healthcare intends to have 40 hospitals with 6000 beds by 2012. Two Green-field hospitals are under-construction, these are:
Fortis Healthcare intends to have 40 hospitals with 6000 beds by 2012. Two Green-field hospitals are under-construction, these are:
A super-speciality hospital in Shalimar Bagh, West Delhi, with specialization in cardiac care, orthopaedics, neuro-sciences, renal sciences, mother and child care and gastroenterology (first phase - 250 beds).
As part of its greenfield project, Fortis bought a 7.5 acre plot in west Delhi's Shalimar Bagh to develop a multi-speciality hospital with 500 beds. The company plans to start construction as soon as the monsoons are over. The company zeroed in on Shalimar Bagh because it is a densely populated area of Delhi that does not have world standard medical facilities.
FIIMBS Medicity- a super-speciality hospital in Gurgaon, with a focus on trauma, oncology, mother and child care, cardiac care, orthopaedics, organ transplants and neuro-sciences (first phase -350 beds).
Fortis Healthcare has taken its total operational hospital strength to 26 hospitals (including 12 satellite/heart command centres).
Some of Fortis Hospitals List:
Hiranandani Hospital - Vashi, Mumbai.
Fortis Malar Hospital - Chennai
Fortis Escorts Hospital - Jaipur
Fortis La Femme - New Delhi
Fortis Hospital - Mohali
Fortis Hospital - Noida
Fortis Jessa Ram Hospital - New Delhi
Fortis Flt. Lt. Rajan Dhall Hospital - Vasant Kunj, New Delhi
Escorts Heart Institute and Research Centre Limited - New Delhi
Fortis Escorts Hospital - Faridabad Fortis Escorts Hospital - Amritsar
Fortis Escorts Hospital - Raipur Fortis La Femme - New Delhi
Conclusion
Stock @ NSE and BSE
NSE:
52-Week high 91.8 Low 45
BSE:
52-Week high 91.8 Low 45
BSE:
52-Week high 93 Low 46
At current Market Price of 65 it is a must hold in your Portfolio.
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