AMRI Roadmap

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AMRI Hospitals Ltd.Southern Avenue| Dhakuria | Salt Lake | Mukundapur | BhubneshwarEASTERN INDIAS FASTEST GROWING HEALTHCARE BRANDEnvisioned By

RUPAK BARUA | Group CEO - HealthcareStrategic Roadmap : Imperatives for Sustainable Resurrection

EXECUTIVE SUMMARY : Roadmap & Way Forward

| December 2014

Indian Healthcare ScenarioEastern Indias Healthcare MarketGrowth Drivers for Health Care IndustrySituational Analysis / Present ScenarioStrategic View Short Term, Mid Term & Long TermMulti Dimensional Achievement Path

CONTENTS

Indian Healthcare ScenarioThe Indian Health Care Industry, Growing at a CAGR of 15% is Expected to touch US$ 250 billion by 2020-- PRICE WATERHOUSE COOPERSIndia being a country with growing population, country's per capita healthcare expenditure has increased at a CAGR of 10.3% from $43.1 in 2008 to $57.9 in 2011 and going forward this figure is expected to rise to $88.7 by 2015--ECONOMIC TIMESPrivate sector's share in healthcare delivery is expected to increase from 66% in 2005 to 81% by 2015. Private sector's share in hospitals and hospital beds is estimated at 74% and 40%, respectively--EQUENTIS CAPITALURL - http://www.pwc.in/industries/healthcare.jhtmlURL - http://articles.economictimes.indiatimes.com/2013-12-02/news/44657410_1_healthcare-sector-healthcare-delivery-fortisURL - http://economictimes.indiatimes.com/topic/Equentis-Capital

Growth Drivers for Health Care IndustryHuge scope for enhancing healthcare services considering that healthcare spending as a percentage of GDP Rural India, which accounts for over 70 per cent of population and is set to emerge as a potential demand source Only 3 per cent of specialist physicians cater to rural demand Vast opportunities for investment in healthcare infrastructure in both urban and rural India About 1.8 million beds required by the end of 2025

Additional 1.54 million doctors and 2.4 million nurses required to meet the growing demand

DATA SOURCE -

Eastern India Health Care Industry UpdateKOLKATA Nucleus of the EastThe private sector has emerged as a vibrant force in India's healthcare industry, lending it both national and international repute.Private sector's share in healthcare delivery is expected to increase from 66% in 2005 to 81% by 2015. Private sector's share in hospitals and hospital beds is estimated at 74% and 40%, respectively.There is substantial demand for high-quality and specialty healthcare services in tier-II and tier-III cities.As per data available for 2008, the total number of sanctioned beds in Kolkata stood at 26,739 for an estimated population of 51 lakhPOSSIBLE CATCHMENT AREA Entire City Populace Entire State of WB Neighboring States Neighboring Countries

BangladeshNepalBhutanMyanmar

DATA SOURCE URL - http://healthcare.financialexpress.com/201007/market01.shtml

Situational Analysis SWOT Assessment

STRENGTHWEAKNESSTHREATOPPORTUNITY- EMAMI GROUP : Parent Company Backing- Existing Brand Recognition- Multiple Units- Advanced Technological Infrastructure- Non Standardized Service Decorum- No Accreditations- Low Morale of Workforce- Diluted Branding- Negative Brand Perception - Pre-Dominant Branding of Other Players- Non Synchronization between Units- Inability of Workforce to Face Challenge- Multiple Geographical Touch Points- Head Start in Growing Healthcare Market- Media Attention- Existing Doctors Pull

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AMRI ROADMAP :: Way Forward Strategic View Short Term

Next 6 monthsReach Break-Even Scenario in coming months to achieve Financial FreedomBrand Repositioning for Market Acceptance/Increased Footfall/Awareness/Occupancy/Top-LineCONSOLIDATION MODE Move Onward Corporate RestructuringInduce IN-SYNC approach across the organization by redefining the core corporate team that will start the TRANSFORMATION journey and take the group to the next level. Planning for Deeper Market PenetrationStrategic GO TO MARKET approach a for capturing newer market share Corporate EmpanelmentFocus on District Level Brand Visibility & Sales ThrustSpecial Emphasis on North East ZoneContinuous & Sustainable Promotional Campaigns Across Markets BPR InitiativeEnsuring Clinical Excellence Ethical Excellence and Evidence Based TreatmentRecruiting Star Consultants for our Centres of ExcellenceService Excellence & Billing Transparency


Next 6 monthsCONSOLIDATION MODE REDIFFUSION Y&R leading advertising agency working on repositioning of BRAND AMRI AMRI Interactive Future Ready Web Portal Launching Shortly Recruitment of core team in Finance, Medical Services, Nursing, Maintenance, Procurement at Group Level We are also strategizing to increase our top line besides initiating aggressive cost control measures. Apparatus


Next 6 monthsCONSOLIDATION MODERestructuring Mukundapur Unit is of prime importance in terms of Infrastructure, Improvement in Service Delivery Module & Increasing Brand Awareness. In the last two and a half years it has gone through major changes and Brand dilution is the biggest threat to the unit as of now.

In next few months we would reposition & re-launch AMRI Mukundapur.

The infrastructural development work would also be completed by this time and it would thus become a full-fledged Multi-Disciplinary Hospital.

Introducing WOW factors for Patient Satisfaction

MUKUNDAPURHowever we feel that only group level macro planning would not be enough as all the four units have different concerns and they need to be resolved accordingly


Next 6 monthsCONSOLIDATION MODE Implementation of 40:60 Revenue Model with skewed towards surgery based revenue

Establish COE Neuro Science, Uro Science, Cardiac Science, Gastro Science

Introducing Full Time Star Consultants

Initiate full set up for ONCOLOGY including Radiotherapy

Increase ARPOB + Reduce ALOS + Maximize CONGO Share DHAKURIAA newly opened Unit with lost glory, we are trying to rebuild and re-launch AMRI DHAKURIA as a flagship strategic business unit of AMRI Hospitals Ltd.


Next 6 monthsCONSOLIDATION MODE Increase EBITDA Margin from 9% to 12%

HR Action Plan Optimum Manpower Utilization & Regular Grooming/Etiquettes Workshop

Change Outdoor Facade & Indoor Ambiance Revamp

Sorting out Legal/Statutory Issues

Sorting out operational issues like F&B/Linen etc. SALT LAKEAlthough SL Unit is in GREEN, there are some teething issues which needs to be tackled strategicallyfor long term sustainability.


Next 6 monthsCONSOLIDATION MODEIncrease OPD Footfall by 100% in next 6 months

Achieve 250+ Surgery per month

Increase Corporate Empanelment/Tie-Ups across Eastern India

Introduction of GPS Enabled Critical Care Ambulance Fleet

Restructuring & Strengthening Marketing Team BHUBANESWARA GREENFIELD Project started 1 year ago -

AMRI ROADMAP :: Way Forward Strategic View Mid Term

2015 - 2017Completing the process of Centralized Control and Group Formation.Finishing off all the Accreditation related work.Introducing academic courses by introduction of DNB, PGDCC and Paramedic Courses by Jadavpur UniversityIncreasing business, Reaching an EBITDA of 16% Considerably increase PBT and reduce negative PATCreation of SOPImplementing full fledged Telemedicine system across all the unitsCreate differentiation with peer group in terms of Clinical & Service Excellence & Patient ExperienceGroup Level Planning


2015 - 2017Increase ARPOB to 20000 from existing 14500Reaching a positive 10% EBITDA levelEarning Revenue of 110 croresTargeted EBITDA will be 8 croresMaintaining an average occupancy of 80%+ on a regular basisFinishing off Mukundapur 40 Kottah project and making it a complete tertiary care hospitalUnit Level Targets Mukundapur Unit


2015 - 2017Restarting the development process of the affected buildingChange outdoor faade for premium look and feelMaintaining average occupancy level of 85%-90%Reach a positive 15% EBITDAEarning a Revenue of 120 crores and an EBITDA of 16 croresComplete and make all the departments functional with required equipment and DoctorsUnit Level TargetsDhakuria


2015 - 2017Complete all Infrastructures Development WorkMaintain occupancy level of 85% - 90%Increase EBITDA to 16%Reaching an ARPOB of 25000Complete all equipment up gradation workGive the entire unit a revamped new look and feelReaching a revenue target of 166 crores and EBITDA of 23 croresUnit Level TargetsSalt Lake


2015 - 2017Make all the 370 beds operationalReach 65%-70% occupancy levelIntegrated Branding ApproachReaching ARPOB of 21000Earning a revenue of 145 crores and an EBITDA of 18 croresTo start full-fledged Oncology & Radiotherapy ServicesTo start Liver Transplant ServiceUnit Level TargetsBhubaneswar

AMRI ROADMAP :: Way Forward Strategic View Long Term

Next 5-7 YearsCreate Centre of Innovation for defined specialtiesIntroducing SAP for back office integrationMake AMRI a paperless green hospitalTo establish AMRI as fastest growing Healthcare Brand in terms of Bed Strength & Revenue and to establish National Footprint of AMRI BrandTo promote international medical tourism and do International Marketing in a more planned & organized way in order to get a good number of International patients on a regular basisComplete Rajarhat project and make AMRI Rajarhat a State of the art tertiary care HospitalForward March 5-7 year is a long time span. A lot of plans we have to make AMRI Hospitals the best hospital in Eastern India. At a glance we are planning to do following things :-

AMRI ROADMAP :: Multi Dimensional Achievement Path

Drive Cultural Change in Service Delivery Attitude Uniform Brand Behavior Across All AMRI Units Shirt Emblem/Badge Let Me Help ! AMRI Specific Internal Ambience Branding at All SBUsRE-ESTABLISH

Create Synergy within AMRI Management / SBU / Staff Maximize Interactive Social Media Engagement with Populace Extensive Brand Exposure through PR Coverage, Brand Campaigns for Renewed TOMA Relationship Building Activities with Doctors, Opinion Makers, Thought LeadersRE-BUILD

Brand Ambassador SOURAV GANGULY Indias Biggest Come Back Hero Establishing AMRI Group as a Top Healthcare Brand CSR Events to Augment Socially Responsible AMRI Corporate Brand Identity Superior Healthcare Promise Viral Patient Testimonial Video CapsulesRE-CONNECTAMRI R3 Approach :: ILLUSTRATIVE MODEL || Timeline IMMEDIATE + CONTINUAL

AMRI ROADMAP :: Multi Dimensional Achievement Path

TOMAS Top Of The Mind Awareness SlotAMRI R3 ApproachAMRI MASS COMMUNICATION MODELBRAND VALUE - Saving Lives

Thank [email protected] Innovate Initiate

AMRI Roadmap

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