The latest report by leading management consulting firm Kanvic has projected that the upcoming opening of new hospitals and the expansion of existing facilities in Jaipur will soon close the supply-demand gap for beds in the city. And with greater choice for patients, the city’s healthcare players are set to face tougher competition.

1. Jaipur city healthcare landscape
This note has been prepared by Kanvic
Kanvic Consulting for the exclusive purpose of our Clients. The material contained herein cannot be copied, used, circulated for any other purpose. All
rights reserved Kanvic Consulting Private Limited.

2. Contents
A
Overview of Indian Healthcare Market
B
Jaipur city healthcare landscape
C
Strong growth
Closing of supply demand gap
Key trends
Directions for future
2

3. The Indian healthcare market has grown at 15% CAGR over last five years
with the hospital segment contributing 71% to the total market size
Size of healthcare market in India,
USD billion
Segment wise market share in
India
78.6
R
CAG
15%
68.4
59.5
13%
51.7
3%
45.0
13%
71%
2008
2009
2010
2011
2012 E
Hospitals
Insurance & Medical equipments
Note: E = Estimated
Source: IBEF
Pharma
Diagnostic
3

4. Increasing healthcare spend and growth in inpatients will further drive industry
growth
Revenue from outpatients and
inpatients, Rs. billion
Monthly per capita expenditure, Rs.
CAGR
CAGR
2160
95
11.50%
19.06%
57
49
44
637
146
32
55
2002
71
76
2006
2008
Urban
Source: NSSO, Crisil
99
2010
Rural
10.26%
840
617
2012
2006
OPD
4.51%
2013
IPD
4

5. The low availability of hospital beds and physicians offers a big opportunity in
India
Hospital beds per 10,000
population
Germany
Physician per 10,000
population
82
China
36.9
39
36
Sri Lanka
UK
4.9
30
USA
14.6
30
Brazil
24.2
23
Vietnam
27.7
22
India
Source: WHO
9
17.6
12.2
6.5
5

6. The healthcare sector has attracted the attention of Private Equity in recent
years
PE investment in healthcare sector in India, $ Mn
Healthcare
sector share
in total PE
investment
4%
12%
10%
1146.4
• Private Equity and Venture Capital
are taking interest in the healthcare
industry. The share of PE investment
in healthcare sector shot up to 12
percent in 2012.
526.8
429.2
2011
• Both multi speciality and single
specialty hospitals are gaining the
attention of PE/VC investors.
2012
Note: * 2013 figures till September 13
Source: Venture Intelligence, Kanvic research
2013*
6

7. Contents
A
Overview of Indian Healthcare Market
B
Jaipur city healthcare landscape
C
Strong growth
Closing of supply demand gap
Key trends
Directions for future
7

8. Jaipur is a fast growing city with hospitals clustered around Tonk Road and JLN
Marg
New development
Sikar Road
New development
Kalwar Road
New development
Agra Road
New development
Ajmer Road
Major Hospitals in Jaipur
New development
Tonk Road
Source:
8

9. Jaipur’s healthcare market has evolved over the years
Evolution of healthcare market in Jaipur
SMS Medical
college is set up
by the
Government
Soni hospital
starts operations
with 20 beds
1971
1947
S K Soni Hospital begins
operations with super
specialities in cardiology,
cancer, nephrology and
neurosurgery
2000s
1986
First private hospital
Santokba Durlabhji
Memorial Hospital
(SDMH), run by a
trust, is inaugurated
Source: Kanvic research
2006
2004
Institute based
hospitals are set up
after privatisation of
medical education in
the state
First public private
partnership Metro
hospital established.
PPP between Metro
Group and the Govt.
of Rajasthan
Fortis Escorts, the
first corporate
hospital in Jaipur,
opens its doors to
the public
2010
2007
100 bedded
Tagore hospital
begins its
operations
2013
2012
Narayana
Hrudayalaya, a
leading Cardiac care
hospital in India,
opens in Jaipur
Eternal Heart Care
Center started.
Nova speciality
surgery also begins
its operations
9

10. The Government of Rajasthan has introduced a healthcare policy to promote
the healthcare industry
A
Eligibility
• Minimum investment of Rs. 10
Crore in a Health Care Facility
• Minimum investment Rs. 5
Crore in case of Nursing and
Para Medical Institutes
• Minimum investment Rs. 50
lakh in case of 15 bed
hospitals/nursing homes
situated in towns/villages
B
Land allotment
• The project should be completed in
a period of 3 years from the date
of allotment
• Those who have been allotted land
on concessional price, shall have to
keep 10% of beds reserved for BPL
(Below Poverty Line) patients
• Those patients will be treated free
and will pay only 25% of the
charges incurred on Drugs and
Diagnostics
• The order of Priority for land
allotment is as bellow:
C
Tax benefits
• The hospitals will have an
exemption from electricity duty
on captive generation as per
the provisions laid down in
clause 8 (iii) of Rajasthan
Investment promotion policy
(RIPS) 2003 for a period of 7
years
• 50% exemption in stamp duty
(as per clause 8(iv) of RIPS
2003)
• 50% exemption in conversion
charge (as per clause 8(v) of
RIPS 2003)
1. Multi Super Specialty Hospitals
2. Single Super Specialty Hospitals
3. Medical colleges with Teaching
Hospitals
4. Dental Colleges with General and
Dental Hospitals
5. General Hospitals
6. Support units like State of Art
Diagnostic Centres/Blood Banks/
Nursing and Paramedical Training
Institutes
Source: Government of Rajasthan
10

11. New hospitals will increase the supply of beds in the market
Proposed new hospitals in Jaipur
Speciality
No. of beds
Proposed
investment, Rs.
Crore
Reliance Medicare
Super Speciality
800
200
Bombay Hospital
Multi Speciality
650
150
Max Hospital
Multi Speciality
NA
NA
International Oncology cancer Hospital
Super Speciality
100
54
Apollo Hospital
Super Speciality
NA
NA
Shalby Hospital
Super Speciality
300
NA
-
NA
300
Manipal Hospital
Multi Speciality
NA
NA
Jaipur National University’s Medical College
Multi Speciality
1000
NA
Hospital
B M Birla Heart Research Centre
Source: Press clippings, Kanvic research
11

12. The supply of beds may exceed the existing demand in the near future
Demand supply situation in Jaipur, number of beds
3,150
13,005
4,377
13,149
5,622
Total
Demand
for beds1
Existing
supply
Government hospitals
Note:
1
Proposed
addition
Future
supply
Private hospitals
Demand for beds is based on WHO standard of 35 beds for a population of 10,000.
Source: Kanvic research
12

13. Contents
A
Overview of Indian Healthcare Market
B
Jaipur city healthcare landscape
C
Strong growth
Closing of supply demand gap
Key trends
Directions for future
13

14. There are key five trends in Rajasthan’s healthcare industry
New
1 investments
Public private
2 partnership model
Awareness on
3 quality accreditation
Tie up with other
4 speciality care
5 Ultra luxury hospital
Key trends
Jaipur is evolving from a tourist city to a medi-city
14

15. 1
Rajasthan’s healthcare industry has received significant new investments in
the past few years
ASG Eye Hospitals, a Rajasthan based group of super specialty eye hospitals
has raised Rs. 50 crore from Sequoia Capital. The funding will be used to
support expansion in central and north India. The hospital started in 2006 and
has presence in 6 cities across Rajasthan. The group now plans to expand to
Jharkhand, Madhya Pradesh, Uttar Pradesh, Chhattisgarh and Bihar.
Private equity (PE) firm Matrix Partners India has invested around Rs 30 crore
in Mewar Orthopedic Hospital, a group that runs specialised units for surgical
orthopedics. Matrix will take an approximate 20% stake in the hospital chain
that operates six centres across a host of cities including Udaipur and Bhilwara
in Rajasthan and Ujjain in Madhya Pradesh.
Pandya Hospital & Research Center has become Nova Speciality Surgery. The
hospital opened its facility on the premises of the erstwhile Pandya Hospital &
Research Center Jaipur.
Fortis Healthcare Ltd has bought 100 beds Lifeline Hospital in Alwar, Rajasthan.
Lifeline Hospital plans to expand it to a 150-bed facility in near future. The
hospital will be re-named as 'Fortis-Lifeline Hospital'.
Source: Press clippings, Kanvic research
15

16. 2
Government of Rajasthan has established a first-of-its-kind public private
partnership hospital in Jaipur
•The state’s first multi-specialty
hospital on a public private
partnership (PPP) basis, Metro
Manas Arogya Health and
General Hospital, opened in
Jaipur in 2012.
•The hospital has 22 specialties
in the initial stage.
Metro Manas Arogya Health and General Hospital
16

17. 3
A number of hospitals in Jaipur have already received NABH quality
accreditation
Jaipur Hospitals going for NABH accreditation
Hospital
Status of Application
Fortis Hospital
Got Accreditation
Apex Hospital
Got Accreditation
S.K. Soni Hospital
Got Accreditation
Bhandari Hospital
Got Accreditation
Heart & General Hospital
Got Accreditation
SDMH
In process
Tagore Hospital
In process
BMCHRC
Documents received
Monilek Hospital
Documents received
Note: NABH is a constituent board of Quality Council of India was set up in 2005 to establish and operate accreditation programme for healthcare
organisations in India. NABH has standards specific to the Indian healthcare setting, major aspects being the assurance of uniform access,
assessment, care of patients and protection of patient’s rights.
Source: NABH
17

18. 4
Hospitals are exploring partnership opportunities with other speciality care
centres
DCDC Kidney Care
• DCDC is one of the most trusted
institutions in Dialysis care
delivery in Delhi / NCR and
rapidly expanding to establish a
wide network in all formats.
SK Soni Hospital
• S K Soni Hospital is one of the
super speciality hospitals in Jaipur
with 225 beds. The hospital
started its operations with super
specialities in cardiology, cancer,
nephrology and neurosurgery.
DCDC Kidney Care, north India’s biggest chain of dialysis centres, opened its first unit for
Rajasthan at SK Soni Hospital, Jaipur. The modern unit consists of 15 dialysis machines with 24
hrs service facility to patients from Jaipur and adjoining towns.
Source: Press clipping, Kanvic research
18

19. 5
India’s first ultra luxurious birthing centre “cocoon” launched in Jaipur
•Cocoon hospital is an ultra luxurious
birthing centre with seven star
hospitality and high-end medical care.
The hospital is equipped with all the
modern pre and post natal healthcare
facilities.
•Cocoon provides world-class medical
facilities like modular operation
theatres, LDR suites, Level 3 neonatal
intensive care units, fully motorised
imported medical beds and examination
couch, 4D ultrasound technology.
19

20. About Kanvic
Kanvic is a management consulting firm helping businesses develop winning strategies, drive profitable growth and achieve
operational excellence to reap long lasting rewards in fast growing Indian economy. We work with C-level executives to develop
innovative solutions for business challenges of 21st century India by bringing in leading edge management thinking informed by
in-depth research and sound analysis.
Contact
Bangalore
Delhi
Jaipur
London
Paris
Ravindra Beleyur
Deepak Sharma
Shiv Kumar Sharma
Gehan Wanduragala
Vlad Flamind
M: +91 94481 46963
E: ravi@kanvic.com
M: +91 99283 77800
E: deepak@kanvic.com
M: +91 75685 21803
E: shiv@kanvic.com
M: +44 7825 160716
E: gehan@kanvic.com
M: +33 7624 51907
E: vlad@kanvic.com
www.kanvic.com
11.13