If you now find speciality clinics providing treatment for specific ailments such as infertility, cancer, heart attacks and so on mushrooming in every city, there is a reason behind it.
Over the past few years, India has seen a surge in the number of single speciality clinics. While eye clinics and dental clinics have been popular formats owing to the success of the model, specialties like IVF and paediatrics have also started gaining momentum.
The incidence of infertility has increased over the decade mainly due to delayed marriages and various other factors. Dr. Rajalaxmi Walavalkar, Managing Director, Cocoon Fertility, informs, “One in six couples face infertility. There are around 27.5 million infertile couples in India and just 1% of them have access to treatment. Hence there is large opportunity.” Dr. Anagha Karkhanis, Director, Cocoon Fertility, adds, “Any good fertility centre must have a live birth rate of around 35-40%.”
PAEDIATRIC CARE
India has the highest percentage of population in the age group of 0-14 yrs. “However, at present there are only 2,000 beds for paediatric patients in India. With a growth rate of 14-18% per annum and ample opportunity, several players are willing to enter the market,” says a franchise manager of Apollo Clinic. “The ability to provide customised solutions for specific requirements along with specialised infrastructure are the factors that have contributed to the preference for single specialty clinics,” he adds.
SETTING UP A SPECIALITY CLINIC
According to Kiran M N, Regional Manager (South), Apollo Clinic, a franchisee will need an initial investment of Rs 2-2.5 crore. The initial investment will include operational costs of the clinic like rentals, interiors, equipment and the franchise fee. He adds that there may be 10-15% difference in cost between metro and Tier II cities. A franchisee can earn revenues up to Rs 30-40 lakhs per month. After excluding expenses like royalty (6%), rent, salaries and miscellaneous bills, the unit can make a profit of Rs 8-10 lakhs.
A centre will need 14-15 employees with overall salaries of Rs 3.5 lakhs per month. When it comes to Apollo Clinic, although investor profiles are screened by the brand, it is not necessary for an investor to have experience in the medical field. However, prior business experience is mandatory. Investors with strong financial background have good leverage. Apollo Clinic is looking to open 10 clinics during 2019-2020 and is eyeing the southern market for expansion.
ROAD AHEAD
IVF is a fast expanding market with many established players looking to expand further. Speaking about the franchising plans of Cocoon Fertility, Walavalkar says, “With 27.5 million infertile couples in India today, we believe Cocoon Fertility has great expansion opportunities.” According to Karkhanis, “Notwithstanding the market growth at 18% CAGR, the IVF market is highly underpenetrated with demand being 9 to 12 times higher than the current market, even in metro cities.
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