| Requirement | |
|---|---|
| Investment Amount | Project Cost of Rs 2.75 Cr. |
| Land Area | Apollo Clinic has an area requirement of 4000 sqft carpet space |
| Return on Investment | 1.0 to 1.5 Crore |
| Franchise | http://www.apolloclinic.com/Franchisee_Form.aspx |
Important Notes
Franchisee Opportunity
Franchising - the surer way to success.
As a business model, franchising commands more than 60% of retail sales in the US. Worldwide, total franchise sales have crossed the US $ 1 trillion mark. Hardly surprising, since one can't avoid spotting a McDonald's, a Pizza Hut, a Kodak Express or a Reebok outlet almost anywhere in the world.
The list of successfully franchised brand names is long and well-known. The trend, as expected, has caught on in India as well. NIIT, Archies, Lakme Lever, Ceat, Satyam Infoway, Aptech and Titan are some of the more successful homegrown brands, which have been using franchising as their road to success. And there are many more. In fact, franchising enjoys an 85% success rate in India.
Why Franchising?
The benefits of working under the umbrella of a large organisation cannot be over-emphasised. You enjoy the best of both worlds. On one hand, as owner of an independent business, you leverage your entrepreneurial capabilities. On the other hand, a nationally recognised brand like Apollo minimises your risks.
All the knowledge and expertise required to successfully run the business is ensured from their end. You will have access to their years of healthcare domain knowledge and expertise. Being part of a large network of Apollo Clinics spread across the Asian sub-continent, you will be able to offer world-class services without spending a fortune.
Potential in Healthcare
There exists a tremendous opportunity in the Indian healthcare industry. This is clearly borne out by the following :
- The size of healthcare industry in India is just 5% of the GDP, as compared to United States, where this figure stands as high as 13.7%. In fact healthcare is the largest industry in the USA.
- A study conducted by KSA Technopak, a leading global consulting firm indicates that in India, on an average, 11% of the annual household income is spent on healthcare. Not only this, 25% of the people believe that this figure is likely to go up.
- Further, the same study indicates that close to 68% of the healthcare spending is on the day to day healthcare needs alone.
- The healthcare industry in India is expected to cross Rs.1000 billion in the next three years.
The Role of Consumerism
The wave across various sectors in India has led to a more demanding consumer, whose awareness levels have risen significantly in the last few years. The consumer now has greater expectations and demands in terms of the quality of healthcare.
This is especially true of the quality of primary healthcare services available in the country today. Given the backdrop of extremely high fragmentation, reliability and accessibility continue to be a distant dream. The consumer's current experience with a host of polyclinics and diagnostic centres, which have little regard for quality, has been disappointing.
Today's consumer is sensitive to both - care and cure - and is hungry for information. And he is willing to dig deeper into his pockets to get that extra reliability, reassurance and convenience.
There is only one logical conclusion to draw from all this. The healthcare industry, which is rightly perceived to be recession-proof, is set for unprecedented growth. And it offers some exciting opportunities in the area of primary and preventive healthcare.
The Apollo Hospitals Group is uniquely positioned to seize this opportunity through its initiative, 'Apollo Clinic'.
Who Can Be A Franchisee
Apollo Health and Lifestyle Limited selects its prospective franchisees with utmost care. They conduct a thorough due diligence before finalizing a franchisee. Some of the minimum requirements that an Apollo Franchisee must have are :
- A high level of interest and commitment to healthcare as a business.
- Prior experience in successfully managing ones own business, preferably in the service industry
- A strong entrepreneurial spirit and zeal to succeed.
- Adequate Financial Resources.
- Ability to manage people.
- A good social standing and reputation
All their franchisees must also be
- Committed to the highest levels of service quality.
- Willing to undergo rigorous training and a desire to learn various aspects of managing a healthcare enterprise.
- Genuinely interested in people and be sensitive to his neighborhood’s requirements.
Franchising Support
Apollo assists franchisees in all areas of the project. Some of these are :
- Preparation of a detailed project report
- Site selection
- The interior design and architecture
- Selection and procurement of medical equipment
- Project co-ordination
- Manpower screening and training
- Information technology and systems
- Marketing Strategy development
- Commissioning and pre-launch Activities
On an ongoing basis Apollo will provide support in the following areas :
- Operations & Quality Audits
- Employee Training
- Technology Upgrades
- Apollo has developed detailed manuals outlining each and every aspect of the operations of the Clinic. Additionally, Apollo also provides rigorous support during operations, including service quality reviews, clinic operations audit, and continuous training programs.
Initial License Fee and Expenses
For operations in India, Apollo charges franchisees a one-time fee of INR 50 Lakhs (Rs. 5 million) as Initial License fee for the base model. The License is valid for a period of 5 years from the date of commencement of operations, and can be renewed on mutual consent thereafter.
Financials
Highlights of ‘Apollo Clinic’ Project
Apollo Clinic could be a great opportunity for you to be a part of a bold and historic chapter in Indian healthcare. As you will realize, the project is an extremely attractive investment proposition. Apollo Clinic will have consultation services like General Medicine, Gynaecology, Paediatrics and Cardiology through a team of full-time physicians and visiting consultants available for General Surgery, Dentistry, Gastroenterology, Urology, Dermatology, and Orthopaedics along with counselling services in areas like Diet and Nutrition along with Hospital Information Centre and lab being operated by AHLL
Project Cost
Each Apollo Clinic has an area requirement of 4000 sqft carpet space and a Project Cost of Rs 2.75 Cr. The Project cost includes investment in Medical Equipment, Interiors and Furniture, Civil Modification, Air Conditioning, Electrical , Information technology (Hardware and Software), Lease Deposit ( if the premises are taken on rent), Preliminary and Pre-operative expenses, Working Capital Margin, Contingency Funds and License Fees to Apollo. The project is ideally funded on a 1:1 Debt Equity ratio. The debt has been taken for a period of Four years with a one-year moratorium on principal payment. Adequate amounts have been budgeted for infusion of fresh capital into the project over a period of Five years, for which duration the projections have been made.
Revenues
Each Apollo Clinic is expected to have a turnover between Rs 1.0 to 1.5 Crore (depending on location) in the first year through diagnostics, consultations, health check packages and other revenue streams such as tele-medicine. The turnover is expected to double by the 4th year.
Expenses
The salaries, rent, administration, interest, depreciation and power consumption are some of the main components of fixed cost, while material / consumable cost, working capital requirement, marketing and Operating License Fees are the variable costs involved.
Based on the need supply gap in a particular geographical region, you can opt for an expanded version of the base model, which will offer a host of additional services and will require higher investments.
Corporate Office (Hyderabad)
Apollo Health and Lifestyle Limited
Address : No. 1-10-60/62 , 5th Floor, Ashoka Raghupati Chambers, Begumpet, Hyderabad-500 016
Phone Number : +91-40-4904 7777
Toll Number : 1-860-500-7788
Franchisee Opportunity
Franchising - the surer way to success.
As a business model, franchising commands more than 60% of retail sales in the US. Worldwide, total franchise sales have crossed the US $ 1 trillion mark. Hardly surprising, since one can't avoid spotting a McDonald's, a Pizza Hut, a Kodak Express or a Reebok outlet almost anywhere in the world.
The list of successfully franchised brand names is long and well-known. The trend, as expected, has caught on in India as well. NIIT, Archies, Lakme Lever, Ceat, Satyam Infoway, Aptech and Titan are some of the more successful homegrown brands, which have been using franchising as their road to success. And there are many more. In fact, franchising enjoys an 85% success rate in India.
Why Franchising?
The benefits of working under the umbrella of a large organisation cannot be over-emphasised. You enjoy the best of both worlds. On one hand, as owner of an independent business, you leverage your entrepreneurial capabilities. On the other hand, a nationally recognised brand like Apollo minimises your risks.
All the knowledge and expertise required to successfully run the business is ensured from their end. You will have access to their years of healthcare domain knowledge and expertise. Being part of a large network of Apollo Clinics spread across the Asian sub-continent, you will be able to offer world-class services without spending a fortune.
Potential in Healthcare
There exists a tremendous opportunity in the Indian healthcare industry. This is clearly borne out by the following :
- The size of healthcare industry in India is just 5% of the GDP, as compared to United States, where this figure stands as high as 13.7%. In fact healthcare is the largest industry in the USA.
- A study conducted by KSA Technopak, a leading global consulting firm indicates that in India, on an average, 11% of the annual household income is spent on healthcare. Not only this, 25% of the people believe that this figure is likely to go up.
- Further, the same study indicates that close to 68% of the healthcare spending is on the day to day healthcare needs alone.
- The healthcare industry in India is expected to cross Rs.1000 billion in the next three years.
The Role of Consumerism
The wave across various sectors in India has led to a more demanding consumer, whose awareness levels have risen significantly in the last few years. The consumer now has greater expectations and demands in terms of the quality of healthcare.
This is especially true of the quality of primary healthcare services available in the country today. Given the backdrop of extremely high fragmentation, reliability and accessibility continue to be a distant dream. The consumer's current experience with a host of polyclinics and diagnostic centres, which have little regard for quality, has been disappointing.
Today's consumer is sensitive to both - care and cure - and is hungry for information. And he is willing to dig deeper into his pockets to get that extra reliability, reassurance and convenience.
There is only one logical conclusion to draw from all this. The healthcare industry, which is rightly perceived to be recession-proof, is set for unprecedented growth. And it offers some exciting opportunities in the area of primary and preventive healthcare.
The Apollo Hospitals Group is uniquely positioned to seize this opportunity through its initiative, 'Apollo Clinic'.
Who Can Be A Franchisee
Apollo Health and Lifestyle Limited selects its prospective franchisees with utmost care. They conduct a thorough due diligence before finalizing a franchisee. Some of the minimum requirements that an Apollo Franchisee must have are :
- A high level of interest and commitment to healthcare as a business.
- Prior experience in successfully managing ones own business, preferably in the service industry
- A strong entrepreneurial spirit and zeal to succeed.
- Adequate Financial Resources.
- Ability to manage people.
- A good social standing and reputation
All their franchisees must also be
- Committed to the highest levels of service quality.
- Willing to undergo rigorous training and a desire to learn various aspects of managing a healthcare enterprise.
- Genuinely interested in people and be sensitive to his neighborhood’s requirements.
Franchising Support
Apollo assists franchisees in all areas of the project. Some of these are :
- Preparation of a detailed project report
- Site selection
- The interior design and architecture
- Selection and procurement of medical equipment
- Project co-ordination
- Manpower screening and training
- Information technology and systems
- Marketing Strategy development
- Commissioning and pre-launch Activities
On an ongoing basis Apollo will provide support in the following areas :
- Operations & Quality Audits
- Employee Training
- Technology Upgrades
- Apollo has developed detailed manuals outlining each and every aspect of the operations of the Clinic. Additionally, Apollo also provides rigorous support during operations, including service quality reviews, clinic operations audit, and continuous training programs.
Initial License Fee and Expenses
For operations in India, Apollo charges franchisees a one-time fee of INR 50 Lakhs (Rs. 5 million) as Initial License fee for the base model. The License is valid for a period of 5 years from the date of commencement of operations, and can be renewed on mutual consent thereafter.
Financials
Highlights of ‘Apollo Clinic’ Project
Apollo Clinic could be a great opportunity for you to be a part of a bold and historic chapter in Indian healthcare. As you will realize, the project is an extremely attractive investment proposition. Apollo Clinic will have consultation services like General Medicine, Gynaecology, Paediatrics and Cardiology through a team of full-time physicians and visiting consultants available for General Surgery, Dentistry, Gastroenterology, Urology, Dermatology, and Orthopaedics along with counselling services in areas like Diet and Nutrition along with Hospital Information Centre and lab being operated by AHLL
Project Cost
Each Apollo Clinic has an area requirement of 4000 sqft carpet space and a Project Cost of Rs 2.75 Cr. The Project cost includes investment in Medical Equipment, Interiors and Furniture, Civil Modification, Air Conditioning, Electrical , Information technology (Hardware and Software), Lease Deposit ( if the premises are taken on rent), Preliminary and Pre-operative expenses, Working Capital Margin, Contingency Funds and License Fees to Apollo. The project is ideally funded on a 1:1 Debt Equity ratio. The debt has been taken for a period of Four years with a one-year moratorium on principal payment. Adequate amounts have been budgeted for infusion of fresh capital into the project over a period of Five years, for which duration the projections have been made.
Revenues
Each Apollo Clinic is expected to have a turnover between Rs 1.0 to 1.5 Crore (depending on location) in the first year through diagnostics, consultations, health check packages and other revenue streams such as tele-medicine. The turnover is expected to double by the 4th year.
Expenses
The salaries, rent, administration, interest, depreciation and power consumption are some of the main components of fixed cost, while material / consumable cost, working capital requirement, marketing and Operating License Fees are the variable costs involved.
Based on the need supply gap in a particular geographical region, you can opt for an expanded version of the base model, which will offer a host of additional services and will require higher investments.
About Apollo Clinic
Apollo Clinics are multi - speciality clinics run by Apollo Health & Lifestyle Limited (AHLL), a wholly owned subsidiary of Apollo Hospitals Enterprise Limited (AHEL). AHLL is one of the largest players in the retail healthcare segment in India.
Apollo Clinics was founded in 2002 with the aim “to bring healthcare of international standards within the reach of every individual.” To achieve this, Apollo Clinics run a a large network of Apollo Clinics with over 61 clinics, both owned and franchised in India and 2 clinics in the Middle East. As a part of the Apollo group's objective to expand its operations, a number of similar clinics are being set up overseas as well.
Each of Apollo Clinics is committed to provide consistently superior quality health care services to address the day-to-day health care needs of the family. To maximize convenience and comfort, Apollo Clinic is an integrated model and offers facilities for Specialist Consultation, Diagnostics, Preventive Health Checks and 24-hour Pharmacy, all under one roof. The Clinic also pioneers in a range of value added services such as counselling on various lifestyle parameters. Apollo Clinic is your new neighbourhood clinic.
Not only is it complete healthcare under one roof, Apollo Clinic also plays a role in empowering customers with adequate knowledge regarding their health. The Apollo Clinic organizes camps and talks in order to achieve this.
Apollo Health & Lifestyle
Apollo Health & Lifestyle Limited (AHLL), a wholly owned subsidiary of Apollo Hospitals Enterprise Limited (AHEL), is one of the largest players in the retail healthcare segment in India. The Company today runs the largest chain of standardized primary healthcare models – multispecialty clinics under the brand “Apollo Clinics” in India and the Middle East, Diabetes management clinics – Apollo Sugar and Diagnostic Centres – Apollo Diagnostics. The company also operates specialty formats – Apollo Cradle for Women & Child and Apollo Spectra for planned surgery
In India, the healthcare industry is undergoing a revolutionary change mainly due to the rising income levels, increasing awareness on lifestyle diseases, changing attitude from prescriptive to preventive healthcare, growing insurance market and increasing government spending on healthcare. New and innovative healthcare delivery models are coming in the market including planned surgical centres, similar to the Ambulatory surgery centres in the U.S..
The visionary Founder Chairman Dr. Prathap C. Reddy of Apollo Group identified this retail healthcare opportunity long before the others and thus Apollo Clinics were established as a network. Since setting-up its first Clinic in 2002, AHLL has experienced significant growth and come a long way not only in terms its geographical footprint and number of centers but also in the variety of service delivery formats it operates today. The recent acquisition of Nova Specialty Hospitals by AHLL places the Company as the largest player in multi-specialty planned surgical centres in India. In the last 4 years, the business has expanded from 2 formats to 5 formats and established leadership in practically every segment that it operates in.
About Apollo Group
At the behest of his father, in 1971, Dr. Reddy left behind a flourishing practice in Boston and returned to India. On his return he found the medical landscape in the country plagued by gaps in infrastructure, delivery and affordability. Things took a turn for the worse when he lost a young patient who just did not have the means to go abroad for treatment. The incident marked a cross road in Dr. Reddy's life and steeled his determination to get quality healthcare to India. He set the blueprint to build India's first multi-specialty private sector hospital.
Undaunted and unfazed by the obstacles faced, Apollo Hospitals opened its doors in 1983 and ever since nurtured a goal which read as Their mission is to bring healthcare of international standards within the reach of every individual. They are committed to the achievement and maintenance of excellence in education, research and healthcare for the benefit of humanity.
In the 30 years since, it has scripted one of the most magnificent stories of success that India has seen. Not only is the Apollo Group one of the largest integrated healthcare groups in the region, it also did successfully catalyze the private healthcare revolution in the country. Apollo today has made every aspect of their lofty mission a reality. Along the way the journey has touched and enriched 42 million lives who came from 120 countries.
Apollo Hospitals was the forerunner of integrated healthcare in Asia, as well as globally. Today, the group's futuristic vision has ensured that it has been in a position of strength at every touch point of the healthcare delivery chain. Its presence encompasses over 10,000 beds across 64 hospitals, more than 2200 pharmacies, over 100 primary care & diagnostic clinics, 115 telemedicine units across 9 countries, health insurance services, global projects consultancy, 15 academic institutions and a Research Foundation with a focus on global clinical trials, epidemiological studies, stem-cell and genetic research.
Over the past three decades Apollo Hospitals' transformative journey has forged a legacy of excellence in Indian healthcare. The Group has continuously set the agenda and led by example in the blossoming private healthcare space. One of Apollo's significant contributions has been the adoption of clinical excellence as an industry standard. Apollo pioneered the concept - the group was the first to invest in the pre-requisites that led to international quality accreditation like the JCI and also developed centres of excellence in Cardiac Sciences, Orthopaedics, Neurosciences, Emergency Care, Cancer and Organ Transplantation. Along with excellence the Apollo philosophy rests on the pillars of technological superiority, a warm patent- centric approach, a clear and distinct cost advantage and a edge in forward-looking research. Apollo's spectacular success rests on sustained commitment and investments in each of these pillars.
The Group continues to break new ground in adopting new technology. From leveraging new age mobility, to getting futuristic equipment Apollo has always been ahead of the curve. Currently, the group believes in the tremendous potential of robotics and is investing heavily in making it a real and robust option for all. Apollo pioneered Tender Loving Care (TLC) and it continues to be the magic that inspires hope, warmth and a sense of ease in the patients.
Apollo started out with the promise of bringing quality healthcare to India at a price point that Indians could afford. The cost of treatment in Apollo was a tenth of the price in the western world. Today as the group charts out its roadmap to take healthcare to a billion, the focus on driving a strong value proposition remains constant.
Apollo Hospitals has taken the spirit of leadership well beyond business metrics. It has embraced the onus of keeping India, healthy. India could soon become the heart disease capital of the world if the surge of lifestyle diseases goes unchecked. Apollo Hospitals has its agenda full in taking steps to avoid this. Recognizing that the risk of heart disease can be significantly reduced, even reversed, Apollo Hospitals launched the pathbreaking Billion Hearting Beating, a campaign that empowers Indians with the knowledge to fight the common adversary - heart disease.
Apollo Hospitals has always strongly believed in social initiatives that help transcend barriers. In keeping with this, the group has started several impactful programmes in this area. One among these initiatives is SACHi (Save a Child’s Heart Initiative) - a community service initiative with the aim of providing quality pediatric cardiac care and financial support to children from underprivileged sections of society suffering from heart diseases. Apollo also runs the SAHI (Society to Aid the Hearing Impaired) initiative to help poor children with hearing impairment, and the CURE Foundation which is focused on cancer screening, cure and rehabilitation for those in need. In the area of Cancer care Apollo has also joined hands with Yuvraj Singh's YOUWECAN to organize massive cancer screenings. Apollo regularly conducts comprehensive health screening camps across the nation. The Group actively leverages its telemedicine and mHealth capabilities to take its screening programmes to even remote corners of the country.
Apollo's remarkable story has captured India's attention. For its service to the nation, the Group was felicitated with the honour of a commemorative postage stamp bearing its name. For his untiring pursuit of excellence in healthcare, Dr. Prathap C Reddy, was bestowed with the second highest civilian award, the ‘Padma Vibhushan’, by the Government of India.
Recently Apollo Hospitals celebrated its 30th year. The Group, led by Dr. Prathap Reddy, reaffirmed its goals and redefined their focus. With ambitious projects like Apollo Reach Hospitals, a strong focus on preventive healthcare and an unabated commitment to nurture excellence and expertise in healthcare, Apollo Hospitals envisions for a new horizon - a future where the nation is healthy, where its people are fighting fit, and India emerges as the preferred global healthcare destination.
1. What is the basic concept behind setting up Apollo Clinic?
Ans. It isn't very often that a member in a typical Indian family requires hospitalization. More often than not, someone in the household needs to visit a physician, who prescribes certain diagnostic tests at times and some medicines most of the times. The basic concept behind setting up Apollo Clinic is to be able to address all such needs in a comprehensive manner. The Clinic will essentially have three key components: Consultation Services, Comprehensive Diagnostic Services and also Round the Clock Pharmacy - all under one roof. In addition, Apollo Clinic also places a lot of emphasis on preventive health checks.
2. What does setting up a Clinic on a Franchisee basis entail?
Ans. Franchising today is one of the most common business models which has been adopted by some of the most well-known brands. In the US, more than 65% of the service industry revenue is achieved through 'franchised' outlets. Even in India, it has had significant success with established companies like NIIT, Aptech, SSI, Archies, VLCC, Shahnaz Husain, Lakme etc. A franchisor supports the entrepreneur (the franchisee) with its brand name and also vast industry / business knowledge. As a result, a typical entrepreneur has best of both the worlds, the satisfaction of running his own business and the support of a well-known large organization.
Setting up a clinic on a franchisee basis requires entering into an arrangement with Apollo Health and Lifestyle Limited as the Franchisor. AHLL will be provide the technical know-how and the franchisee will operate the business.
3. Who is an ideal franchisee for setting up the Clinic?
Ans. Consistently superior quality of services is the cornerstone to ensuring success of the Clinic. AHLL therefore selects each franchisee with utmost care. A proper due diligence is carried out before finalizing a franchisee.
An ideal franchisee will have the following characteristics :
- He will have a prior track record of running a successful business venture.
- He should be able to devote full time or a significant amount of his time to the clinic.
- He will have a social standing, enjoy good reputation and exhibit integrity.
- He will be genuinely interested in the healthcare sector.
- He will strictly abide by the guidelines given by AHLL.
- Individuals looking purely for quick returns or productive utilization of their idle space or building are not necessarily the right candidates and are likely to be discouraged.
4. What is the first step towards becoming a Franchisee?
Ans. Anyone who is interested in becoming a franchisee can contact the Head -Franchisee Operations of Apollo Health and Lifestyle Limited directly by telephone at the Corporate Office , e-mail or fax. (Details provided in the Contact Us section of Apollo Clinics's website) He can also apply directly through this website or download the franchisee form and send it to postal address. On receiving the required information, the prospective franchisee will be required to fill and submit a detailed Franchise Application Form. A team from AHLL will then meet him and discuss the details of the business. It will also assess the franchisee’s ability to run Apollo Clinic. Once we are satisfied with our assessment, the prospective franchisee must sign the Franchise Agreement and pay the initial license fee.
5. How can a prospective Franchisee obtain detailed information about the project?
Ans. If your profile is found suitable, you will be required to attend a meeting with our Senior Management at the AHLL corporate office in Hyderabad,. During this meeting, you can obtain detailed information about the project, including financial projections. You could also seek clarification on any questions you may have, related to the project
Additionally, you could plan to visit some of our operational clinics at various locations in India, to get a first hand feel of 'Apollo Clinic.
6. What are the formalities involved in selection of a Franchisee for 'Apollo Clinic'?
Ans. Depending upon your conviction about the project and AHLL's assessment about your ability to successfully take it forward, a MOU would be signed between AHLL and your group. At this point, you would need to pay License fee.
This would be followed by a Due Diligence conducted by AHLL to assess your financial capabilities. You would also need to form a Private Limited company to establish and operate 'Apollo Clinic'. Once this process has been completed, AHLL will sign a License agreement with your company to officially nominate you as a Franchisee for 'Apollo Clinic'
7. The best brand in healthcare. A workable business model. A good location. Success is guaranteed, right?
Ans. Wrong. The most important ingredient for success is the franchisee himself. His managerial ability, interest in healthcare and extent of personal involvement in the business determines the success of 'Apollo Clinic'. Which is why, as in all franchise businesses, we have extraordinary performers, average performers and non-performers.
8. How long would it take to start operations from the time of signing the Franchisee Agreement?
Ans. The time taken from signing the Agreement to commencing operations depends to a large extent on a few critical factors like, the selection of a suitable site, tying up the finances and completing licensing requirements. Also, the time required for constructing ground up clinics is typically longer than that required for establishing clinics in existing buildings. We have in the past opened a Clinic within sixty days from commencing work. If there are no major issues, it is easily possible to commence operations within a time frame of 8-10 months from the date of agreement.
9. Can I form a partnership venture with other business partners for taking Clinic franchisee?
Ans. You can decide to partner with anyone else for taking the Clinic franchisee. However, AHLL will assess each person individually before signing the agreement. It is also to be noted that the Franchisee Agreement is signed with a limited liability company only. Change in partners / shareholders after the signing of the agreement is restricted by the terms of the agreement.
10. Can a franchisee only be an investor? If I put up funds and agree to a different sharing pattern, is AHLL willing to manage the business? Else, can I appoint a professional manager to run the business?
Ans. No
11. What is required in order to set up a Clinic?
Ans. The Clinic will require an area of about 4,000 sqft at ground floor level and should preferably be close to a large residential area. The area will vary according to the number of specializations being planned.
It is envisaged that the Clinic will be on leased / rented premises. However, franchisees may also consider constructing a separate building, or purchasing existing buildings.
12. How is Apollo Clinic different from similar establishments run by doctors in my neighborhood?
Ans. You can feel the difference between Apollo Clinic and other similar establishments right from the moment you enter the clinic. The ambience is designed to provide an experience which is most comforting to the customers. Our clinical as well as non-clinical procedures have been developed after research by a team of specialists from within the Apollo Hospitals Group. Consultants are selected for the Clinic after being interviewed by a panel of doctors from the Apollo Group. In addition to all of this, Apollo Clinic can enhance its business through referral arrangements with Apollo Hospitals throughout the country.
13. What are the medical equipment that the Clinic uses to provide diagnostic services?
Ans. Given below is an indicative description of the medical equipment in the Clinic :
Laboratory : Bio Chemistry (auto analyzer), Hematology (Cell counter) and Microbiology
Radiology : X-ray, Ultrasound
Cardiology : ECG, Colour Doppler and Treadmill
Pulmonology : Spirometry
Dentistry
In addition, the Clinic has a Treatment Room which provides simple services like dressing, suturing etc. It is however not equipped to provide any emergency services.
14. Can the Clinic provide for high-end equipment, for e.g. a CT Scan?
Ans. The 'base' model of the Clinic does not contain any high-end equipment. However, depending on the local need-supply gap and the availability of adequate space, we have included other facilities in a number of Apollo clinics. Some of the equipment or services that can be considered include CT Scan, Endoscopy Services and etc.
15. What are the value added services that Apollo Clinic provides?
Ans. The Clinic also offers tele-medicine facilities. These are for use not only by the consultants practicing in the Clinic, but also by other physicians as well. While its acceptance is likely to be gradual, we expect such a facility to give the Clinic a competitive edge.
Apollo Clinic also provides interface with other Apollo Hospital group entities to enhance resource utilization. The Clinic also offers a number of health check packages. In addition, a number of camps have been developed for implementation at the Clinic, with well established protocols along with Hospital Information Centre.
16. What is telemedicine? How does it help the Clinic?
Ans. Telemedicine provides the Clinic access to specialists and super-specialists who are located at different parts of the world. This is done using audio-visual devices that connect consultants in one facility (in this case the Clinic) with specialists and super-specialists in another facility. Doctors and customers in the Clinic have the option of consulting these specialists and super-specialists online without incurring the cost of travel, and within a short span of time. The end result is an expert opinion from a specialist with much less cost. The Clinic benefits by providing additional value-added services to its customers at minimal costs. Currently, the network is extended to consultation with Apollo facilities at Delhi, Chennai, Hyderabad, Kolkata and Ahmedabad.
17. What does Apollo Health and Lifestyle Limited do for the franchisee?
Ans. The relationship between Apollo Health and Lifestyle Limited and the franchisee is modeled on best international franchising systems. As the franchisor, AHLL will provide all support for setting up and later running the Clinic.
The overall scale of operations will ensure that the franchisee enjoys excellent cost competitiveness - both during implementation stage and later during operations.
Given below is a brief description of AHLL's support services to be provided to be franchisee :
Site selection Do's & Dont's : This is first step of project development, and is the most crucial element of Clinic setup and utmost care should be exercised in choosing the right place for the Clinic. A set of Do's and Don'ts to be kept in mind while looking for a suitable site for the Clinic
Architecture & Interior Design : AHLL has developed a comprehensive manual incorporating all possible design features to take care of all types of sites (of any size, shape, location, etc).However Based on the manual, AHLL's in-house design team prepares the layout plan for each Clinic.
Project Execution including Appointment of Contractor : Standardized construction (flooring) / engineering (air conditioning, electrical, sanitary fixtures etc) materials are negotiated with leading suppliers / manufacturers to get the most competitive pricing.
Project Financing : Based on a study of the local need-supply scenario, AHLL will assist in preparing a Project Report and also assist the franchisee in mobilizing financial resources (in the form of debt), where specifically requested by the franchisee.
Selection and Procurement of Medical Equipment : The franchisee is provided with the list of recommended medical equipment from AHLL. These equipment have been selected after exhaustive negotiations with leading suppliers and have the best configuration and prices. The franchisee need not reinvent the procurement process. The equipment package includes adequate warranty and after sales service features.
Selection and Training of Personnel : AHLL has a highly structured system for selection and training of medical, para-medical and other administrative / support personnel in a Clinic. AHLL is also directly involved in Screening of key positions in the Clinic, and a panel from Apollo Hospitals is involved in conducting interviews for all key positions in the Clinic.
A 10 day training session is conducted by the Apollo team, for the administrative and technical staff at the Clinic. Refresher training and upgrades are provided to the employees on a periodic basis.
Clinic Management Software : AHLL has an exclusive basis, Clinic Management Software. This comprehensive software address all medical and non-medical functions of the Clinic. The software is implemented by AHLL / IT partners , and the Clinic staff will also be trained by AHLL / IT partners.
Local sales support : AHLL's marketing executives will train the franchisee's sales personnel in sales and promotion of the Clinic. They are actively involved in developing product and pricing strategy and also the pre-launch activities.
On-going Service Quality Training & Monitoring : AHLL will carry out periodic medical and service quality audits of the Clinic function, which help in maintaining and improving service quality standards of the Clinic. This includes regular clinical and non-clinical audits, developing standard operating procedures and checklists, and assistance in implementing service quality. AHLL also sets and monitors monthly revenue targets for the clinics.
18. What are the revenue streams in a Clinic? And what is the overall profitability?
Ans. The Clinic will derive its income broadly from the following services :
Consultation including counseling services
Diagnostic Services
Preventive Health Check Programs
Dental Services
Treatment room
Others (Telemedicine, doctor @home, referrals etc)
The Clinic is expected to generate revenue through all of the above sources. It is also expected that there will be a large degree of cross-referrals between various revenue generating streams. In the first year of operation, the Clinic in India can expect to generate between Rs. 15 million to Rs. 20 million, depending upon the facilities that are provided.
19. What does Apollo Health and Lifestyle Limited charge as fees?
Ans. AHLL charges an 'Initial License Fee' at the time of signing the Agreement . This license is valid for a period of Five (5) years, which is the tenure of the License Agreement. As royalty fee, AHLL will charge a percentage of the gross turnover of the clinic , which will be payable on a monthly basis.
* Initial License Fee and Operating License Fee may be revised at AHLL's discretion
20. Will AHLL or AHEL make investment (even a token amount) in these Clinics?
Ans. Since the chain of Apollo Clinic is being set up on a franchise basis, the franchisee will be responsible for the entire investment. Where requested, AHLL will assist the franchisee in arranging term loan from a bank. However, neither AHEL nor AHLL will not make any investment in the clinic. It will also not give any guarantee to the lender.
21. What will be the relationship between existing Apollo hospitals, Apollo Clinic?
Ans. While every Apollo Clinic will be an independent entity, both the entities will benefit from the common brand building and similar exercises. Also, the Clinic can benefit from being able to refer customers for high end diagnostics as well as tertiary or in-patient care to the Apollo Hospitals. At the same time, the Clinic will gain from referral income while retaining the customer.
The goodwill of all these facilities shall automatically come to you through Apollo brand name. Specific association with any or all of these entities, shall be based on local market conditions and business needs.
22. If an Apollo clinic is set up in a city where a full-fledged Apollo hospital already exists, will it not mean unnecessary competition within the same organization?
Ans. Apollo Clinic shall focus on primary healthcare. We do not perceive any competition from the existing Apollo facilities which are mostly secondary and tertiary care facilities. Secondly, no two Apollo facilities would be operating in the same territory as any other Apollo facility. In fact, such facilities would create synergy in terms of referrals.
23. What will be the name of the Clinic? Can the name be altered or modified?
Ans. Every clinic will be called "Apollo Clinic". No deviations are allowed. The name and signage has been standardized and no deviation, beyond AHLL's stated guidelines, will be permissible.
24. What is the growth plan for the Clinic? Can I ever own an Apollo franchised hospital?
Ans. Currently our focus is on primary healthcare as it is an area with tremendous unexplored and unutilized potential. The growth of clinics is envisaged in terms of geographical expansion or / and sub-franchising as also through introduction of additional facilities like CT Scan, dentistry etc. However, we cannot rule out the possibility of setting up hospitals at a later stage with the Apollo Group.
25. How are the physicians going to be associated with the Clinic?
Ans. The Clinic will have a Consultant General Medicine, Pediatrician, Gynecologist and a Cardiologist. These physicians will form the core team, but besides the Consultant General Medicine, all other specialty doctor will not normally be on the full time rolls of the Clinic. Apart from them, the Clinic will have a group of visiting consultants from various disciplines like General Surgery, Orthopedics, Endocrinology, Urology etc. The Clinic will also have a Radiologist and a Pathologist on its full time roll. The hours of employment may however be decided based on the local conditions.
The Consultant General Medicine will take care of the preventive Health Checks programs too. All other doctors will be consultants.
26. How would doctors and technical staff be recruited? What will be AHLL role in this?
Ans. The method of employment of doctors would vary from city to city. AHLL will assess the financial implications on the business and recommend full time employment, revenue sharing based association or any other method that is considered appropriate. Good technical staff is adequately available in the market. AHLL shall help in recruiting such all key staff by designing advertisements, conducting interviews, and short listing.
27. What would be the profile of a typical Clinic Manager?
Ans. The professional manager should preferably be an MHA with excellent managerial skills, marketing acumen and a flair for customer relationship management. He would have about 7-8 years of work experience, preferably in a primary healthcare facility. Doctors in administration may also fit the profile.
28. How many people do I need to employ to run the Clinic operations?
Ans. Typically staffing requirements in India vary between 20 to 25. Actual staffing could vary depending on a number of variables including the number of facilities set up and the number of floors occupied by the Clinic. In the international context, the number of staff will need to be determined on a case by case basis.
29. Can I invest in 10 clinics in different locations at a single time? What are the economies of scale involved for the franchisee in such a case?
Ans. We would like to allocate a Franchise only for one clinic in the beginning. Based on the business performance and customer feedback, we would consider allocating licenses for more clinics.
30. Are the locations for opening an Apollo clinic restricted? Can the clinics be set up anywhere in India or abroad?
Ans. AHLL has prioritized certain cities based on Market Surveys conducted for the establishment of new clinics. Some of these cities are being considered for implementation in the first phase itself. Other cities shall be covered in the second and third phase. We foresee completion of all three phases in the next 2 years itself. For information regarding specific locations, please contact our corporate office.
31. What are preventive health-checks and how important are they?
Ans. Preventive health-checks are checks performed on individuals to determine the stat of their health by carrying out a series of diagnostic tests. Preventive healthcare is catching up in bigger towns and cities. There is already a lot of corporate business in this area. We intend to popularize the maxim of "Prevention is better than cure" through our marketing programs. Very soon, with the entry of private insurance companies, preventive health checks will become a norm. Insurance companies would certainly prefer paying for pre-insurance health checks than settling large hospitalization bills. Secondly, while allotting an insurance policy to anybody, insurance companies would rather have an institution like Apollo certifying the health of a prospective customer as against an individual.
32. Whom should I get in touch with at AHLL?
Ans. Contact details are as follows :
Mr. Tarun Gulati
Email: [email protected]
Ph: 09000217260
