Industry Research – Playback to mentors

Company name: Narayana Health

Sector & Subsector: Healthcare & Hospitals

Group No: 06

Students’ Introduction
Sr.no. Name Roll no. Division

1 Avinash Bhanudasrao Deshmukh 06 OSCM

2 Omkar Madhukar Patil 24 OSCM

3 Aniket Sudhir Sutar 31 OSCM

4 Anshu Suryaprakash Thakur 34 OSCM

5 Hritik Rajendra Ugar 36 OSCM

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 About the Hospitals

• The hospitals subsector is a critical component of the healthcare industry, providing essential medical services,
treatment, and care to individuals across diverse demographics and medical conditions.
Characteristics: 1) Diverse Healthcare Providers 3) Supportive Ancillary Services
2) Focus on Patient Care 4) Technological Advancements

Segments / Categories: 1) Genaral Hospitals 3) Public & Private Hospitals

2) Specialty Hospitals 4) Community Health Centers (CHCs)

Why is this sub-sector important for the Economy?

1) Economic Contribution
2) Job Creation
3) Export Potential
4) Healthcare Spending

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 About the Hospitals

• Growth of the Hospitals Subsector:

- The Hospital subsector in India has been experiencing rapid growth, with a Compound Annual Growth Rate
(CAGR) of around 22% since 2016.
- The hospital market itself is a significant sub-sector and is projected to reach nearly $200 billion by 2032,
growing at a CAGR of 8%.

• Trends in Hospitals Subsector:

1) Digital Transformation
2) Personalized Medicine
3) Remote Monitoring
4) Generative AI in Healthcare

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 What’s new in the Hospitals?

• New developments and updates in the subsector:

1) Integration of Virtual Reality (VR) and Augmented Reality (AR) in medical training, patient education, and
surgical simulation for immersive learning experiences.
2) Emergence of Blockchain technology for secure sharing of electronic health records, patient consent
management, and healthcare supply chain management.
3) Advancements in Gene Editing and Gene Therapy techniques such as CRISPR-Cas9 for precision genome
editing and potential treatment of genetic disorders and diseases.
4) Implementation of Robotics and Automation in healthcare facilities for tasks such as surgical assistance,
medication dispensing, inventory management, and disinfection to enhance efficiency and reduce human error.

Impacts on the subsector due to government policies:

1) Regulatory Compliance 4) Healthcare Financing
2) Reimbursement Policies 5) Health Information Privacy
3) Public Health Initiatives 6) Value-Based Care Incentives:

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 About the Hospitals

Metrics 2019 2020 2021 2022 2023

Industry size (in crores) 1,54,627 2,83,628 7,94,087 11,09,486 12,93,785

Growth percentage of the sub- 57.78% 83.42% 179.97% 39.71% 16.61%

sector

Main players/top companies and Dr Lal PathLabs Ltd. Max Healthcare Apollo Hospitals Global Health ltd Fortis Healthcare
their market share (0.78%) Institute Ltd (0.39%) Enterprises (1.33%) (0.19%) (0.09%)

Revenue structure (Key revenue Patient Services Patient Services Patient Services Patient Services Patient Services
generation items) Revenue Revenue Revenue Revenue Revenue
Diagnostic Services Diagnostic Services Diagnostic Services Diagnostic Services Diagnostic Services

Cost structure Personnel Costs Personnel Costs Personnel Costs Personnel Costs Personnel Costs
Equipment Costs Equipment Costs Equipment Costs Equipment Costs Equipment Costs

Percentage Import 50% – 60% 50% – 60% 50% – 60% 50% – 60% 50% – 60%

Percentage contribution to GDP 4% 4% 4% 4% 4%

CAGR = 16.5%
Source : https://www.techgig.com/files/contest_upload_files/compendium-2022.pdf Ozone by YUGMA | yugma.ai
 BMC – Hospitals Subsector

• Medical Suppliers • Medical Treatment • Quality Healthcare • Personalized Care • Inpatients

• Insurance Providers • Diagnostics • Comprehensive • Communication • Outpatients
• Referral Networks • Surgery Care Channels • Emergency Patients
• Research • Emergency Care • Patient-Centered • Care Coordination • Specialized Patients
Institutions Care • Patient Education
• Innovation and
Excellence

• Other Hospitals
• Medical Staff
• Healthcare
• Facilities
• Networks
Technology
• Ambulatory
• Reputation and
Surgery Centers
Brand
• Urgent Care
Centers

• Personnel Costs • Fee-for-Service

• Facilities Costs • Insurance Reimbursements
• Equipment Costs • Out-of-Pocket Payments
• Administrative Costs • Ancillary Services Ozone by YUGMA | yugma.ai
 Porter’s Five Forces Model – Hospitals Subsector

Bargaining Power of Bargaining Power of

Supplier customer
Moderately High A B Low
• Insurance Coverage
• Medical Suppliers
• Labor Force • Quality of Care
• Insurance Providers • Price Sensitivity
Competitive
Rivalry

Threat of New Entry Threat of Substitutes

High C D High
• High Capital • Ambulatory Care
Requirements Centers
• Telemedicine
• Regulatory Barriers
• Brand Loyalty
High
• Number of Competitors
• Price Competition
• Differentiation Strategies Ozone by YUGMA | yugma.ai
 PESTEL Analysis – Hospitals Subsector

P E S T E L
• Government • Healthcare • Demographic • Medical • Healthcare • Malpractice
Regulations Spending Trends Technology Infrastructure Lawsuits

• Funding and • Reimbursemen • Health • Electronic • Green • Data Privacy

Budgeting t Policies Awareness Health Records Initiatives
• Licensing and
• Healthcare and • Consumer • Patient • Innovations in • Healthcare Accreditation
Legislation Spending Preferences Healthcare waste
management • Healthcare
Regulations
• Community and
and social Compliance
responsibility

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 SWOT Analysis – Hospitals Subsector

OPPORTUNITIE
STRENGTHS WEAKNESSES THREATS
• Advanced Medical • High Operational S
• Telehealth and • Public Health Crises
Technology Costs Remote Care
• Government
• Skilled Healthcare • Capacity • Population Health Regulations
Professionals Constraints Management
• Competitive
• Comprehensive • Quality Control • Collaborations and Pressures
Services Issues Partnerships

• Reputation and • Infrastructure

Trust Challenges

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 Conclusion about the Hospitals Subsector
• Despite the challenges posed by factors such as rising costs, workforce shortages, and regulatory complexities, the
hospital sub-sector remains a vital component of the healthcare ecosystem.

• Hospitals are continuously adapting and innovating to meet the evolving needs of patients, embrace technological
advancements, and deliver high-quality, accessible, and cost-effective care.

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Company Analysis

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 Introduction of Narayana Hrudayalaya
• Narayana Health is a leading healthcare provider in India, headquartered in Bengaluru known for its commitment to
delivering affordable, high-quality medical care across a wide spectrum of specialties.
Founding Vision:
- Founded in 2000 by Dr. Devi Shetty, Narayana Health aims to make quality healthcare accessible to all, especially those
from economically disadvantaged backgrounds.
- Narayana Health is renowned for its expertise in complex surgeries, including cardiac procedures, organ transplants,
neurosurgeries, oncology treatments, and pediatric care.
Mission:
To deliver compassionate, affordable, and sustainable healthcare services of the highest quality, ensuring that no patient is
denied access to medical treatment due to financial constraints.
Growth Strategy:
Narayana Health aims to expand its reach and impact by continuously innovating healthcare delivery models and strategically
expanding its network of hospitals and health centers.

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Product and Services:
1. Medical Services 2. Diagnostic Services
2. Surgical Treatments 3. Telemedicine and Remote Consultations
Business Model:
3. Affordable Healthcare 4. Technology Adoption
4. Operational Efficiency 5. Community Engagement
5. Integrated Care
Company Details:

Date of Incorporation 06/01/2000

Chief Executive officer Dr. Emmanuel Rupert
Headquarters (location) Bengaluru
Listing status (listed/unlisted) Listed
No. of employees 7048
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 What’s new at Narayana Hrudayalaya?
• Innovations:
1. Data Analytics and AI for Cost-Effective Care 3. Technological Advancements Across Operations
2. Process Innovations and Standardization 4. Strategic Growth and Expansion

Awards and Accolades:

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 Main competitors of the Narayana Hrudayalaya

PROPRIETORY & CONFIDENTIAL Ozone by YUGMA | yugma.ai

 Competition Analysis: Key Performance
metrics
Apollo Hospitals Max Healthcare Institute
Metrics Global Health ltd Fortis Healthcare
Enterprises Ltd

Type (Public/Private) Public Public Public Public

Primary care
Quaternary care
Diagnostic services Advanced cardiac care Diagnostics Hospital Services
Emergency services Orthopedics trauma care Diagnostic Services
Products
Surgical services Oncology patient support Telemedicine Services
Pharmacy services Neurosciences air ambulance Health Insurance Services
Transplants

Net sales (Cr) 6,524.80 1,997.31 1,959.45 1,090.31

Employees 83,147 1001 - 5000 7829 1000 - 5000

Profit (Cr) 1,759.10 1,295.91 599.21 1,129.42

Recommended Source: Screener.in

PROPRIETORY & CONFIDENTIAL Ozone by YUGMA | yugma.ai
 Data analysis – Narayana Hrudayalaya
CAGR 1 year
Remarks/Analysis (compare 5-year growth with
Metrics 2019 2020 2021 2022 2023 Growth (5 growth
1-year growth)
years) (2022-23)

2,877.59 This indicates a potential acceleration in revenue

Revenue (Rs Cr) 3,151.57 2,610.52 3,735.88 4,590.21 12.38% 22.86% generation, but it's important to understand if this is a
one-time event or a sign of a sustained upward trend.
164.74 751.77 This indicates that the company's profit growth has
remained strong in the most recent year, although it has
Profit (Rs Cr) 95.73 -49.23 438.30 67.30% 71.51% marginally outpaced the average growth over the past 5
years.

2,781.86 This could suggest a successful cost-optimization

Overall Cost 2,975.97 2,659.75 3,297.57 3,838.44 8.38% 0.03% strategy implemented in the recent year.

Market share 1.85% 1.10% 0.14% 0.33% 0.34% - Shows a potential reversal of this trend.

687.10 722.36 1,012.27 This indicates that the company's material cost growth
Cost of Materials consumed (Rs Cr) 665.45 920.72 10.17% 9.94% has slowed down marginally in the most recent year
compared to the average growth over the past 5 years.
This suggests that the company's employee benefit
Cost of Materials consumed (% of expenses have grown at a faster rate in the most recent
23.87 22.92 25.49 24.64 22.05 -2.15%
Total Cost/ Revenue) year compared to the average growth over the past 5
years.

Employee Benefit Expenses (Rs Cr) 624.05 673.70 627.19 768.47 879.20 8.94% 14.04%
Employee Benefit Expenses (% of
21.68 21.37 24 20.56 19.15 -
Total Cost or Revenue)
Total Cost/ Total revenue (%) 96.67 94.4 101.88 88026 83.62 -
Operating Profit 311.55 440.94 209.81 689.35 1,045.71 35.31% 51.69%
Operating
PROPRIETORY Profit Margin
& CONFIDENTIAL (%) 10.82 13.99 8.03 18.45 22.78 - Ozone by YUGMA |
 BMC – Narayana Hrudayalaya

• Medical Suppliers • Medical • Quality Healthcare • Patient- • Patients

• Insurance Providers Treatment • Comprehensive Centered Care • Caregivers
• Referral Networks • Diagnostics Care • Trust and • Referring Physicians
• Research • Surgery • Patient-Centered confidence
Institutions • Telemedicine Care • Long term
• Innovation and relationships
Excellence

• • Other Hospitals
Medical Staff
• • Healthcare
Facilities
• Technology Networks
• • Ambulatory
Reputation and
Brand Surgery Centers
• Urgent Care
Centers

• Personnel Costs • Fee-for-Service

• Facilities Costs • Insurance Reimbursements
• Equipment Costs • Out-of-Pocket Payments
• Administrative Costs • Ancillary Services Ozone by YUGMA | yugma.ai
 Porter’s Five Forces Model – Narayana Hrudayalaya

Bargaining Power of Bargaining Power of

Supplier customer
Moderately High A B Low
• Medical Suppliers • Insurance Coverage
• Labor Force • Quality of Care
• Insurance Providers Competitive • Price Sensitivity
Rivalry

Threat of New Entry Threat of Substitutes

High
• High Capital
C D High
• Ambulatory Care
Requirements
Centers
• Regulatory Barriers
• Telemedicine
• Brand Loyalty
High
• Number of Competitors
• Price Competition
• Differentiation Strategies Ozone by YUGMA | yugma.ai
 PESTEL Analysis – Narayana Hrudayalaya

P E S T E L
• Government • Healthcare • Demographic • Medical • Healthcare • Malpractice
Regulations Spending Trends Technology Infrastructure Lawsuits

• Funding and • Reimbursem • Health • Electronic • Green • Data Privacy

Budgeting ent Policies Awareness Health Initiatives
Records • Licensing
• Healthcare • Consumer • Patient • Healthcare and
and Spending Preferences • Innovations waste Accreditation
Legislation in Healthcare management
• Healthcare
• Community Regulations
and social and
responsibility Compliance
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 SWOT Analysis – Narayana Hrudayalaya

OPPORTUNITIE
STRENGTHS WEAKNESSES THREATS
• Specialized Medical • Limited International
S
• Expansion of
• Competition
Expertise Specialties
Presence
• Emerging Healthcare
• Affordable Healthcare • International
• Dependency on Technologies
Model
Cardiac Care Expansion • Regulatory Changes
• Innovative Healthcare
Delivery • Geographic • Telemedicine and

• Strong Brand Concentration Digital Health

Reputation • Operational • Partnerships and
Challenges Collaborations:
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 Preparing for the Narayana Hrudayalaya

• Knowledge about varied businesses

Narayana Hrudayalaya operates in the healthcare sector, specifically hospitals and healthcare services. Studying companies across different
industries and sectors expands my knowledge base and allows me to better understand the unique challenges, business models, and dynamics of
various domains.

• Knowledge about Business & Revenue model (Products & Services)

 Business and Revenue Models: Narayana Hrudayalaya has developed a unique model focused on providing affordable healthcare services
to the masses. Analyzing their revenue streams, pricing strategies, service offerings, and operational efficiencies can provide insights into
innovative business models in the healthcare sector.
 Products and Services: By understanding the range of services and treatments offered by Narayana Hrudayalaya, from cardiac care to
cancer treatment, I can gain a deeper understanding of the healthcare industry's offerings, their complexities, and the value propositions they
provide to patients.

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 Narayana Hrudayalaya
• Job Opportunities in Narayana Health
Research and Development:
Clinical Research Coordinators
Research Scientists  Data Analysts
Research Assistants

Quality Assurance and Compliance:

Quality Assurance Managers
Compliance Officers
Risk Management Specialists

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 Narayana Hrudayalaya
Preparing for Interviews at Narayana Health

1. Research the Company:

2. Understand the Role:
3. Highlight Relevant Experience:
4. Be Prepared for Behavioral Questions:
5. Demonstrate Passion and Fit
6. Ask Questions:
7. Practice and Rehearse:

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 Conclusion about the Narayana Hrudayalya
• Narayana Hrudayalaya is well-positioned to capitalize on the growing demand for quality healthcare services in India and
potentially expand its footprint globally.
• However, it will need to continue innovating, investing in technology, and maintaining its focus on affordability and
accessibility to sustain its competitive advantage in the dynamic healthcare landscape.

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 Sources of data
• https://www.techgig.com/files/contest_upload_files/compendium-2022.pdf

• https://www.narayanahealth.org/about-us

• https://www.moneycontrol.com/

• https://awsone.capitaline.com/Externel-Access-IPLogin.html

• https://www.screener.in/

• PwC India: https://www.pwc.in/

• Wikipedia

• ChatGPT, Bard Ai, Microsoft Co-pilot

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Thank you

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