Apollo Hospitals Group is exploring the society clinics, and small-format clinics’ market within apartment complexes, across the country.
Initially, the company plans to set up one clinic each in 500 apartment complexes across Bengaluru, Pune, Chennai, Hyderabad and other cities in the next three years.
That will open a market potential of around Rs 300 crore. The firm has tied up with ApnaComplex, an apartment management and security solution provider, to set up these society clinics. The format, where the opportunity is of over Rs 3,000 crore in the top cities, will help the primary and speciality care business of the group grow, under Apollo Health and Lifestyle (AHLL). International Finance Corporation (IFC) had invested Rs 450 crore into the firm earlier.
Located within the residential complexes, the clinics will offer a range of services such as consultations, diagnostics (blood collection for all tests), health-check packs, health screening (vitals check such as blood pressure and blood tests), vaccinations, minor treatments (nebulisation, minor cuts/bruises, injections) and basic life support.
“We hope to invest around Rs 20 crore in the next three years to set up about 500 clinics through a tie up with ApnaComplex. Each clinic will be 300-500 sq ft in size, and will have an MBBS graduate, whose credentials are certified by Apollo Clinics, for about four to six hours a day.
Specialist doctors will visit the apartments once a week. There will be a nurse stationed throughout the day,” said Anand Wasker, chief opearating officer, Apollo Clinics. The investment will be from internal accruals.
“Our services are all outpatient services. In each society, with over 500 apartments, there could be an average of 2,000 people. If each of them spend around Rs 3,000 a year, the market potential would be Rs 300 crore. The addressable market size would be Rs 3,000 crore, if there are 5,000 societies in these top six markets,” he added.
The market is captive, and builders offer more amenities as basics, such as swimming pool and gym. Super markets and laundry services are also coming to these societies.
He claims the Apollo Clinic will become the gateway of the health care requirements of these societies. This could be for pharmacy, diagnostics, service of specialists from Apollo Hospitals and appointment with the super specialists in an Apollo Hospital. No other health care service provider has the ability to deliver such a large number of services, he added.
The company expects the new business to break-even in three to five years. He added the company expects 5-10 per cent of the revenue of AHLL to come from the society clinics in three years.
AHLL is expected to see break-even on earnings before interest, tax, depreciation and amortization (Ebitda) in the next financial year.