A Dissertation on Health Care Industry with

special reference to “Apollo Hospitals”

Submitted By
GOURAB BANIK
 INDUSTRY OVERVIEW
• Medical industry or health economy
•Non-profit organizations that provide medical
services,
•manufacture medical equipment and develop
pharmaceuticals
•The modern healthcare industry is divided into
many sectors and trained professionals
•The healthcare industry is one of the world's largest
and fastest-growing industries.
 Company Description :

Name of the company: Apollo Hospitals

Type: Public
Industry: Healthcare
Founded in: 1983
Founded by: Dr. Prathap C Reddy.
Headquarters: Chennai, Tamil Nadu, India
Areas served: South Asia, Middle East
Products or services: Hospitals, Pharmacy, Diagnostic
Centre
Number of employees:43,557 (2016)
Website: www.apollohospitals.com
 MISSION AND VISION :
• Mission-
“Our mission is to bring healthcare of
International standards within the reach of
every individual. We are committed to the
achievement and maintenance of excellence in
education, research and healthcare for the
benefit of humanity”.
• Vision-
“Touch a billion lives.”
 PORTER’S FIVE-FORCES MODEL
• THREAT OF SUBSTITUTE
•Many low cost alternatives are available in the market
• Buying medicines from the pharmacy without prescription.
• Substitute of heath care service can be aroma therapy,
acupuncture,
stone healing.

• THREAT OF NEW ENTRANCE

• Entry of new health care company is open
• Super speciality and technologically advance hospitals
• Increasing of Private health care clinic
• High growth in health care sector
• BARGAINING POWER OF SUPPLIERS
• Better opportunity for the employees from the other hospitals
• Availability of renowned specialist doctor
High attrition among doctors and other nursing staff
• Better offers and commissions from rival hospitals

• BARGAINING POWER OF BUYER

• Patients choose hospitals based on word of mouth
• Locality of hospital and fees also a factor to choose a hospital
• Quality of the hospital and behaviour with the patients party also a
matter
to choose a hospital.

• RIVALRY AMONG EXISTING COMPETITORS

• Many number of big hospitals is available in this industry
• Government hospitals is a big challenge for private hospitals
•Increasing more numbers of medical students as well as doctors
• Small scale clinic give a big competition
 SWOT Analysis:
• Strength:
•Advance and specialist health care
•Reputation of doctors
•Integrated health care
•Geographical advantage

• Weakness:
• Damaged reputation
• Other alternatives of health care
• Alteration of staffs
• OPPORTUNITIES-
• Spread the brand name Apollo brand name across India
• Open new branches of Apollo in different location
• Use new technology of medical science
• Captured the new market

• THREATS-
• New competitor in existing market
• Loss of key staffs or associate
• More number of small-scale health care clinic
• Difference of fees structure compare to other hospitals
COMPETITIVE STUDY WITH OTHER HOSPITALS
AND MEDICAL SERVICES
:
 INTERPRETATION

• From the above report of Money Control, it is

clear that Apollo hospitals captured the
maximum market share in this healthcare sector
and the growth of share rate is very high compare
to other hospital and medical services.EPS of the
Apollo Hospitals in last financial year above
Rs. 20 so return from the share is also high which
is a good indication for the investors.
 Profit & Loss Analysis:

Year 2012-13 2013-14 2014-15 2015-16 2016-17

Profit/ 33072 30912 34659 36944 26349

Loss Profit
(in Lakhs)
40000

35000

30000

25000

20000 Profit

15000

10000

5000

0
2012-13 2013-14 2014-15 2015-16 2016-17
 Ratio Analysis:

CURRENT RATIO

2.5

1.5
CURRENT RATIO

0.5

0
2017 2016 2015
 Current Ratio: A Current Ratio under
1 indicates that company's liabilities are greater
than its assets and suggests that the company in
question would be unable to pay off its
obligations if they came due at that point. In
that case, company is in a good position to pay
off its obligations if they came due at that point.
In 2017,2016 & 2015 Current ratio is over 1 i.e.
companies assets are greater than the liabilities.
 QUICK RATIO:
QUICK RATIO
1.4

1.2

0.8

QUICK RATIO
0.6

0.4

0.2

0
2017 2016 2015
• Quick Ratio: A quick ratio of 1.29, 0.76 & 0.97
means that a company’s liquid assets is not
available in 2015 and 2016 financial year but
in 2017posotion is good 1.29 to cover the
current liabilities. Therefore, in 2017 Apollo’s
quick ratio has more than 1 which is a good
indication.
 DEBT EQUITY RATIO:
1.4

1.2

0.8

DEBT EQUITY RATIO

0.6

0.4

0.2

0
2017 2016 2015
Debt- Equity Ratio-It means most of the
company’s assets are financed through debt,
in 2017,2016 & 2015 as debt- equity ratio is
more than 0.5 so most of the company’s
assets are financed through Debt, which is a
not a good sign for Apollo Hospitals.
 Earnings Per Share
• Earnings Per Share 2017 =Rs. 20.50
• Earnings Per share 2016 = Rs. 24.00
• Earnings Per share 2015 = Rs. 24.91
30

25

20

15
EPS
10

0
2017 2016 2015

• Here I find out the basic EPS of Apollo hospitals has been decline within 3
years
It is not a good indication for the shareholders as well as new investors.
 INCOME GROWTH:

INCOME GROWTH IN PERCENTAGE

16.8
16.7
16.6
16.5
16.4
INCOME GROWTH IN PERCENTAGE
16.3
16.2
16.1
16
2016 2017

• Income Growth indicates that the sales of 2017 are

increased by16.25% compare to 2016, i.e. Apollo
Hospitals income is increasing in every year, income
increase means company also earning more profit in
every year. In 2016 income was increased by 16.69%
 FINDINGS
Apollo Hospitals has a good brand name in the health care industry.

There are so many competitors in this field to compete with Apollo Hospitals.

In 2016-17 financial year their profitability has declined compare to 2015-16.

Income percentage of Apollo Hospitals is increase year by year.

EPS of the company has decline year by year, which is not a good indication
farther shareholders

Company’s quick ratio is in a well condition in last financial year.

Company’s current ratio is also in a good form to pay off if obligations arise.
 CONCLUSION
Apollo hospitals capture a good brand name in a health care
market but due to arise in competition with big and small
company it is difficult to stay in well condition. This is the
responsibility of management team to grab the market with
their efficient and innovative work. Nowadays Use of more
advance technology and super speciality health a care is big
term in health care industry if Apollo Hospitals give more
focus on this terms so it is easy stay in well condition in this
platform because patient party gives lot many to save the life
their patient but some hospitals are not give them write
treatment, super speciality care so they loss their passions
and move on, so those are the few factors which Apollo try
to improve for their betterment in the health care industry.
 WEBLIOGRAPHY
• https://www.apollohospitals.com/

• https://en.wikipedia.org/wiki/Apollo_Hospitals/

• http://www.moneycontrol.com/stocks/marketinfo/
marketcap/bse/hospitals-medical-services.html/