Advanced Diagnostics Advanced Pathology

Vision BeyondGoel

Dr VinayCEO

ABOUT US

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Launch of Website

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Introduction ofMobile

Medi -check Van

Lifecare Diagnostic & Research Centre Pvt. Ltd.

Started in July 1995, we have completed more than 17 successful years

This is the first multi facility diagnostic centre in Andheri West, with complete imaging & pathology services under one roof.

Year-on-year we have achieved many mile stones; To mention few – We have added 4 diagnostic Centre, Huge Referral Lab, more than 100 collection Centre, many HLM and JV etc

The staff recruited is fully qualified & trained and now this is are USP. All our diagnostic cntre are backed with Specialists/MD doctors.

We have zero tolerance on quality-compromise, we believe in investing in technology to leverage on the basic need for quality healthcare.

Opened a branch at Juhu with all facilities likePathology, X-Ray,Sonography, 2 D Echo, Diet & Nutrition

First Sub-center at Yari Road, Mumbai

2003

A 24-hrspathology centre

was opened with latest in pathology equipment.

2009

Sub centreat Malad (w),

withpathologycollections& X.ray, Sonography

Launch of Lifecare Center

19951997 2000 2004

Day & Night

Franchising

2010 2011

2012

was opened

Central Lab

Future expansion Plans

Diagnostic Centers Boost

•Spurred by success of our diagnostic (imaging) division started way back in 1995, Lifecare has scripted plans of starting 15 to 20 diagnostic centers across India.

•To begin with, it is augmenting its position in the island city, where it has four diagnostic centers located at Malad West (one), Juhu (one), and Andheri (two).

•The group has chalked out plans to commence five more diagnostic centers, zeroing in on locations at Nasik, Pune, Delhi, Punjab, Rajasthan. All the five centers would be rolled out by mid 2013.

•We are creating a different sub-brand for diagnostics, under the parent brand – Advanced Diagnostics

Bolstering Pathology Business

•The group’s pathology section, which is also getting a new sub-brand Lifecare Advance pathology, is slated for expansion.•In the long run, the group plans to pitch itself as a pan India pathology chain with multiple hubs and collection centers. “To begin with, we are setting up base in Western and Northern region.

•The group has come up with a separate referral laboratory at Andheri (W) in Mumbai. The Central Lab, 5000 sqft state-of-the-art Infra.

Hospital Lab Management

•Besides stand alone path labs, it is also keen on taking on managing more path labs of hospitals.•As of now, five hospitals have tied-up with Lifecare Medical Centre for management of their path labs. “Our immediate target is to have tie- ups with 12 to 15 hospitals,”

•The group is also scaling up its number of collection centers from 100 to around 250 by end of 2013.

Strengthening Preventive Healthcare

•It is also strengthening its nutrition and fitness division or preventive healthcare segment, one of its key differentiators from its competitors. “Our ‘Fit Life’ is more than a gym.

•In ‘Fit Life’, so far we have been offering weight management and diet counseling. Now, besides advising customers on management of their nutrition, diet and exercise plan, we would also offer them medical check-ups. Having a medical check-up is extremely crucial to understand what kind of obesity a customer has.

•Base on the medical report, nutrition planning and exercise would be offered. The customer is free to go to any gym for exercise, based on our guidelines.

Widening Test Menu

•Recently we have added molecular genetic screening tests to our ever expanding test menu.•We have also added high end Septicemia testing, and 4th generation vitamins testing

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INDUSTRY & KEY CONSUMER TRENDS

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Healthcare Industry to be INR 7,945 billion by 2015…

The Indian Healthcare Industry is currently estimated at INR 1,645 billion. The industry is expected to grow to INR 7,945 billion by 2015, growing at a CAGR of 30%

Healthcare spending in India is <5% of the GDP as compare to Global average of 9.7%Growing demand for improved public health infrastructure due to the country‘s high population and

increasing disease profileWith an increasing incidence of life style diseases (approx. 33 percent of the total pie) and a growing

geriatric and pediatric population, there is an emphasis on the need for specialty care

Comparison of Healthcare Spend Healthcare spending as a % of GDP

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India’s Three Major Consumer Generations

Consumer and their healthcare needs..a clear shift from cure based treatment to Preventive care and holistic well being

● More than ever, people seeking healthcare look for trustworthy information to make informed decisions about the care they receive. Quality, service, convenience and cost are major determinants in the decision- making process.

● Meeting consumers’ evolving needs and preferences would require shift to consumer-centric business models and customer focused initiatives.

● 24% of current healthcare consist of the population born after 1986 focus on prevention and wellness

Midnight’s Children (born before 1955)

Maintenance

Accessible, Affordable medical

care

Transition's Children (1955-85)

Wellbeing

Holistic wellness management

Liberalization’s Children

(born after 1986)

Proactive Prevention & Fitness

Wellness management with

international delivery standards

Focus

HealthcareNeed

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Healthcare delivery is going through a change, new model is focused at taking healthcare closer to patient…..

Traditionally healthcare has been delivered in a hospital or clinic setting worldwide. This system lack transparency and is difficult to access. Overall, the existing systems are providing sub-optimal levels of experience and returns for consumers, payers and suppliers.

Hospitals will continue to be the mainstay of treatment for episodic acute care, we see a fundamental shift in the nature, mode and means of delivery of care.

Preventive and chronic care are best treated in an ambulatory environment close to the place where the patient resides. This transformation is already evident and shall continue to grow. There will be shift of less intensive inpatient care to home care.

The healthcare delivery is moving closer to the patient

Curative

Wellness/ Preventive

Medicine for ALL

Personalized Healthcare

Tele-Medicine

Mobile and Home care

Ambulatory Surgery Centers

Hospitals Specialty Centers

Move from curative wellness and preventive care opens up a lot more opportunities for diagnostics.

Emerging areas healthcare like mobile & homecareand personalized healthcare involves extensive use of diagnostics , thus changing landscape of the healthcare present great potential for diagnostics labs

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Medical equipment and Supplies

8%

Pharmaceutical 32%

Currently Diagnostics business is INR 59 billion, expected to grow at 28% and would be INR 255 billion by 2015

Overview

• Indian healthcare industry was valued at INR 1,645 billion in 2009• Estimates to be INR 7,945 billion industry by 2015, at a compounded annual

growth rate (CAGR‖) of 30%

• At INR 59 billion, diagnostic services account for approximately 3.60% of the healthcare market

• Diagnostic services sector is expected to grow to INR 255 billion by the end of 2015 at a CAGR of 28%

• Diagnostics market has become one of the important growth industries as 60-70% of treatment decisions are now based on test results

• Diagnostics services is divided primarily in two most important segment• Pathology Services• Imaging Services (Including Radiology)

Healthcare Industry Break-up

Healthcare Delivery 72%

Diagnostics 6%

Healthcare Services 60%

Pharmacy 22%

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Thus, we see a clear opportunities to set up a chain of diagnostics centre offering pathology and imaging services…

Unmet Diagnostics Needs

Diagnostics business to be INR 255 billion by 2015

Opportunities to set up a chain of

Average patient spend on the additional diagnostic need (outside the hospitals) is Rs 469, 5% of the hospitalization expenditure

Paradigm shift to Preventive care and holistic well being24% of current healthcare consist of the population born after 1986 focus on prevention and wellness.

Hospital Lab Management A INR 36 billion opportunity

diagnostic Centres60-70% of treatment decisions are now based on test results

and medical imaging

Emerging Healthcare delivery modelNew delivery model is focused at making healthcare more closer to patient. Wellness & preventive care, tele-medicine and mobile care will drive the healthcare delivery going forward

If diagnostics lab players are able to penetrate 15% (Currently 1%) of this market by 2015, this segment would be worth INR 36 billion in revenues.

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FRANCHISING ASSESSMENT & BUSINESS MODELS

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Business Format – Diagnostic Business

Large and Large+ Centres will have multi specialty consultations

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Small Medium

Large Large +

Collection of sample

Consulting services

Pathology

Radiology

Mammography

Ophthal

BMD

Sonography

Cardiac Imaging

Dental

ENT

Fitness

CT Scan & MRI

Investment Plan (INR Mn)

2.0-2.5 3.0-3.5 8.0-8.5 14.0-15.0

Annual revenue (INR Mn)

4.5 -5.0 8.0-9.0 12.0-14.0 18.0-20.0

Expected RoI (Y1) 70-80% 70-80% 65%-70%

45%-50%

Need for Franchising in this business

• An arrangement whereby a trademark owner allows the use of his trademark along with a standardized manner of presenting the goods & services under the mark,

• In exchange, the franchisee provides capital and also pays certain royalty for the use of the mark.

What is Franchising

• Limited capacity: One center facility will have limited manpower & organizing to serve a larger customer base; However with multiple centers in locality one can target new customers

• Reach: customers in remote areas may need your service but are inaccessible now

Issue with one center format

• The solution in such cases is to have “branch” center - either company owned or Franchise

The Solution

• This appears to be the cheapest and easiest manner of doing so, while also ensuring that the branch continues to provide the same quality of service as is associated with the name of the parent company.

Why Franchising

• Franchise agreement defines exactly how the franchisor expects the business to be run, in terms of its curriculum, design, set up & functioning of the administration, lesson plans, day-to-day operations of the business, the manner of conducting research & development policies, so as to keep up their reputation for which they are well-known.

Terms & Conditions

• The continuing control by the franchisor over the way a franchisee operates is the distinguishing feature of a franchising agreement from a licensing agreement.

Franchisor Control

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What does a Franchisee look for in a business ?

Key trends in Industry in past, current shift & likely future

scenario Level of Competition – existing & emerging sources

Consumer behavior towards the services on offer – need based / demand based

business Likely industry size in next 10-15 yrs period

Pathology services market is estimated at INR 180 billion in 2015, growing at a CAGR of 28%.

Imaging market is growing as there is increasing reliance on medical imaging both for diagnostics as well as for therapeutics, expected to be INR 74 billion segment by 2015

Currently just 1% of the labs inside the hospitals are managed by the diagnostics market. Given the potential of this market, if diagnostics lab players are able to penetrate 15% of this market by 2015, this segment would be worth INR 36 billion in revenues

Industry

Brand

Financial Gains

Position of Franchisor in the market

Growth plans as envisioned by the Franchisor

Support to be offered by Franchisor – Marketing, Operational, Financial

Lifecare is an ultramodern diagnostic center with comprehensive facilities for laboratory & Imaging investigations under one roof.

Strong legacy of success over 15 years

Initial investments & recurring

expenses Immediate returns from the

business

Long term returns should justify cost of capital & cost of property (own property)

The business would demand high investments for large diagnostics centers. While capital requirement for small diagnostics centers and collection points is low

RoI will depend largely on location & franchisee’s involvement in the business, we feel 2-3 years period should be good for large center

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Support from company

Setup Support

Equipments

Lifecare would provide inputs in centre’s design and operations. The project would be implemented under the guidance of Lifecare’s Project Management Team.

• Site selection guidelines• Provision of Architecture/Interior design guidelines• Provision of the design for signage• Site visits by the Franchisor’s team to monitor and co-ordinate progress of the project work

Lifecare would advise on the equipment to be installed at the centre and also help in the procurement at reasonable prices.

• Equipment selection• Guidelines to ensure smooth installation of the Medical equipment• Guidelines in finalizing a maintenance contract for the equipments

Lifecare would provide marketing & sales support to promote the services to local medical fraternity and hospitals

• PR at national level• Clinic launch guidelines• Advertising templates• Guidelines on direct mailer campaigns• Policies on inaugural promotion schemes• Marketing Manual covering an Institutional Marketing Plan, corporate proposals template,

details of the products,

Lifecare would provides the Operations Manual which contains mandatory and suggested specifications, standards, operating procedures and rules for running the business.

Marketing and Sales Support

Operational Support

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Summary: Why partner with us

OPPORTUNISTIC MARKET:Company offers services in pathology, imaging and preventive care

ESTABLISHED NAME:Credible business image with in business presence for 17 years

EXPERIENCED AND SKILLED:Strong proof of concept with four diagnostics centers

STRONG MARKET PRESENCE:Over 100 collection centers and doing HLM in five hospitals

ADVANCED AND LATEST TECHNOLOGY:Hi-tech and Advanced pathology lab for more reliability

SUSTAINABLE APPROACH:Faster reporting penetration with advanced testing process

QUICK AND ACCURATE:Excellent adaptability of pathology & diagnostics centers

ROBUST IT INFRASTRUCTURE AND NETWORKED LOGISTICS

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OPEN HOUSE

Dr. Vinay Goel CEO

+91 9820057625drvinay.g@lifecareindia.com,

adm@lifecareindia.comLifecare Medical Centre

(A Div of : Life Care Diagnostic & Research Center Pvt. Ltd.) 1st Floor, Sunshine, Opp. Shastri Nagar, Lokhandwala Complex,Andheri (West),

Mumbai 40005,India

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Thank You !!!!

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