When franchising was alien to Indian healthcare, Apollo familiarised the concept by establishing a network of Apollo Clinics across the country. Today, it boasts of the largest network of health clinics in India. Sonal Shukla takes a look at the meticulous journey of the Apollo Clinics.
No more is franchising associated only with retail outlets and food chains. Considering the demand for prompt healthcare services, one hospital has made headlines by setting up a chain of clinics - through the franchisee route. Apollo has taken upon the task of ensuring that prompt and the best medical care is available to each Indian, even in small cities.
In 2002, Apollo Health and Lifestyle Limited (AHLL), a wholly-owned subsidiary of Apollo Hospitals Group, took up an ambitious task of establishing a chain of family health centres, Apollo Clinics, across India. The Group recently founded its 50th Apollo Clinic in Mumbai, thus accomplishing an important milestone in its journey to be a major player in the primary healthcare space.
‘The size of the primary healthcare market in India is approximately 40% of the value of the entire healthcare spent currently. It has huge potential,’ says Sangita Reddy, Director, Operations, Apollo Hospitals Group.
A recent report by CII-McKinsey on Healthcare in India reveals that 61% of private spending in India goes into outpatient care. Apollo’s own research reveals that day-to-day healthcare market in India is devoid of quality regulation mainly due to the lack of monitoring by a Government agency. ‘The end customer lacks the rational framework to make decisions about the right service provider in this space,’ says Ratan Jalan, CEO, AHLL. Thus, Apollo Clinic was born with the first set-up unveiled in April 2002 at Janakpuri, New Delhi.
The total investment per clinic required is Rs 2 crore. The franchisee brings in the investment, and Apollo takes home a royalty of 6% of the gross revenue generated each month. With more than 6 lakh customers, the clinics generate revenue of close to Rs 60 crore.
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