Apollo to spread via franchisee route
By Mohini Bhatnagar | 06 Mar 2002
1
Mumbai: The well-known Chennai-based Apollo Group of Hospitals, through its subsidiary Apollo Health and Lifestyle Ltd (AHLL), is planning a massive spread of operations in India and abroad, mainly through the franchisee route.
Apollo Health plans to set up Apollo Family clinics in Bangladesh, Sri Lanka, Singapore and the Middle East as well as 250 Apollo Family clinics throughout the country in the coming three years.
Apollo Health CEO Ratan Jalan says the company is in the process of setting up its newly-floated Apollo Family clinics in the above countries on a franchisee basis. “We are in an advanced stage of talks with potential partners in these countries and we expect the deals to be through in a few weeks' time. We are also planning to set up a chain of 250 such clinics in India, based on a franchisee model, in three years' time.“
He says the clinics will have, among other things, specialist consultations, diagnostic services, facilities for telemedicine and a round-the-clock pharmacy. Besides this, all clinics will be interconnected and the model will leverage information technology to optimise various functions.
Each clinic is estimated to cost Rs 2 crore and will be structured on a debt-to-equity ratio of 1:1. “The model estimates an internal rate of return of 30 per cent and, therefore, is expected to break even in less than four years' time,“ he says adding that Apollo will be investing around Rs 12 crore in the coming months to set up basic facilities like the hardware and software backbone for the chain of clinics for a smooth run.
All clinics will be fully integrated and medical records of the patients will be available online at any clinic across the country. The clinic management software for the company has been customised by GE Medical Services. Jalan says once a franchisee is selected, Apollo Health will provide assistance in mobilisation of financial resources, site selection, architecture, and selection and installation of medical equipment.
Apollo will also provide customised clinic management software to the franchisee and assist in manpower planning, recruitment and training. Apollo Health will also assist the franchisee in the sourcing and selection of medical equipment as well as IT infrastructure to enable the clinics to deliver better service to the customers.
Once selected, franchisees will undergo a 15-day customised training programme at the Indian Institute of Management (IIM) to orient themselves to the needs of the healthcare segment. The staff at these clinics eventually responsible for its functioning will undergo a training programme designed by NIS Sparta.
The group also plans to spend Rs 4 crore on preventive healthcare communication and in marketing the Apollo clinics, and plans to have around 30 clinics operational by the end of December 2002.
Apollo Health plans to set up Apollo Family clinics in Bangladesh, Sri Lanka, Singapore and the Middle East as well as 250 Apollo Family clinics throughout the country in the coming three years.Apollo Health CEO Ratan Jalan says the company is in the process of setting up its newly-floated Apollo Family clinics in the above countries on a franchisee basis. “We are in an advanced stage of talks with potential partners in these countries and we expect the deals to be through in a few weeks' time. We are also planning to set up a chain of 250 such clinics in India, based on a franchisee model, in three years' time.“
He says the clinics will have, among other things, specialist consultations, diagnostic services, facilities for telemedicine and a round-the-clock pharmacy. Besides this, all clinics will be interconnected and the model will leverage information technology to optimise various functions.
Each clinic is estimated to cost Rs 2 crore and will be structured on a debt-to-equity ratio of 1:1. “The model estimates an internal rate of return of 30 per cent and, therefore, is expected to break even in less than four years' time,“ he says adding that Apollo will be investing around Rs 12 crore in the coming months to set up basic facilities like the hardware and software backbone for the chain of clinics for a smooth run.
All clinics will be fully integrated and medical records of the patients will be available online at any clinic across the country. The clinic management software for the company has been customised by GE Medical Services. Jalan says once a franchisee is selected, Apollo Health will provide assistance in mobilisation of financial resources, site selection, architecture, and selection and installation of medical equipment.
Apollo will also provide customised clinic management software to the franchisee and assist in manpower planning, recruitment and training. Apollo Health will also assist the franchisee in the sourcing and selection of medical equipment as well as IT infrastructure to enable the clinics to deliver better service to the customers.
Once selected, franchisees will undergo a 15-day customised training programme at the Indian Institute of Management (IIM) to orient themselves to the needs of the healthcare segment. The staff at these clinics eventually responsible for its functioning will undergo a training programme designed by NIS Sparta.
The group also plans to spend Rs 4 crore on preventive healthcare communication and in marketing the Apollo clinics, and plans to have around 30 clinics operational by the end of December 2002.
