Aatmaj Healthcare Ltd Management Discussions

Indian Economic Overview

Indias economic landscape in FY 2023-24 continues to demonstrate remarkable resilience, reaffirming its position as the fastest-growing major economy in the world. Despite facing challenges from global economic uncertainties, including geopolitical tensions, inflationary pressures, and supply chain disruptions, India has sustained robust growth, driven by strong domestic demand, government initiatives, and a vibrant services sector.

Macroeconomic Stability and Growth Drivers

Indias economy has benefited from a combination of strong macroeconomic fundamentals and targeted policy interventions. The governments focus on infrastructure development, digital transformation, and financial inclusion has played a pivotal role in stimulating economic activity. Initiatives like the National Infrastructure Pipeline (NIP) and the Production Linked Incentive (PLI) schemes have attracted substantial investments across various sectors, further boosting economic growth.

The manufacturing sector, bolstered by the Make in India and Atmanirbhar Bharat (Self-Reliant India) initiatives, has seen a resurgence, contributing significantly to GDP growth. Additionally, the agriculture sector has remained resilient, supported by favorable monsoons and government reforms aimed at improving farm productivity and income.

Private Consumption and Investment

Private consumption, a key pillar of the Indian economy, has seen a strong rebound, fuelled by rising incomes, pent-up demand, and a recovery in consumer sentiment. The expansion of the middle class, coupled with increased urbanization, has driven demand across a wide range of goods and services, from consumer electronics to automobiles.

Investment activity has also picked up pace, with both domestic and foreign investors showing renewed confidence in the Indian market. The governments push for ease of doing business, coupled with tax incentives and policy reforms, has created a conducive environment for business expansion and innovation.

Challenges and Opportunities

While Indias growth trajectory remains strong, several challenges persist. Inflation, driven by volatile global commodity prices and domestic supply constraints, continues to be a concern. The Reserve Bank of India (RBI) has taken proactive measures to manage inflation, balancing the need for growth with price stability. Additionally, the widening current account deficit and fluctuating exchange rates pose risks to external stability.

However, these challenges also present opportunities. Indias focus on becoming a global manufacturing hub, coupled with its digital economy boom, positions the country as an attractive destination for investments in emerging sectors such as technology, renewable energy, and healthcare.

Global Integration and Strategic Importance

Indias growing integration into the global economy is evident through its increasing trade volumes, strategic partnerships, and leadership in international forums like the G20. The countrys Presidency of the G20 Summit in 2023 has further enhanced its global stature, allowing it to shape the global economic agenda and advocate for the interests of developing economies.

The International Monetary Fund (IMF) and World Bank have lauded Indias economic performance, projecting continued strong growth in the coming years. Indias demographic advantage, with a young and dynamic workforce, coupled with its focus on innovation and digitalization, is expected to drive sustained economic growth, making it a key player in the global economy.

Outlook

Looking ahead, India is well-positioned to navigate the complexities of the global economic environment. The countrys robust domestic market, proactive policy framework, and commitment to structural reforms provide a solid foundation for long-term growth. As India continues to modernize its infrastructure, enhance its business climate, and invest in human capital, it is poised to achieve its vision of becoming a $5 trillion economy in the near future

Indian Healthcare Industry

The Indian healthcare industry continues to be a key contributor to the nations economy, expected to reach INR 9,600 billion by FY 2027 with a CAGR of 11%. This growth is driven by a combination of demographic changes, rising healthcare awareness, and technological advancements. The government has remained committed to improving healthcare infrastructure, with significant investments in both rural and urban areas.

The healthcare sector has seen a marked shift towards digital health services, telemedicine, and the adoption of AI-driven diagnostic tools. These advancements have not only improved access to healthcare but also enhanced the efficiency of service delivery. The governments support for startups in the health tech space has fostered innovation and the creation of cost-effective solutions for the masses.

The expansion of private healthcare providers continues to play a critical role in addressing the countrys healthcare needs, particularly in underserved areas. The ongoing corporatization of the healthcare sector has led to improvements in the quality of care, the establishment of centers of excellence, and the expansion of tertiary and quaternary care services across the country.

Health Insurance Providers Market Penetration Bolstering the Healthcare Sector

The health insurance market in India is expected to grow at a CAGR of 11.2% during 2024-2029, driven by rising healthcare costs and an increasing elderly population. The growing penetration of health insurance has made healthcare more accessible to a larger segment of the population, thus stimulating demand for healthcare services and encouraging the development of new healthcare facilities.

Competition among insurance providers has intensified, resulting in more affordable premiums and a wider range of insurance products. This trend has further fueled the expansion of the healthcare market, as more individuals can now afford quality healthcare services.

Transformation of the Healthcare Sector

The healthcare sector in India has experienced significant transformation due to the rapid adoption of technology, accelerated by the COVID-19 pandemic. Innovations such as AI-powered diagnostic tools, telemedicine, and IoMT devices have revolutionized patient care. Wearable technology, like smartwatches, now offers advanced health monitoring capabilities, and the integration of AI and big data analytics has improved predictive healthcare.

These technological advancements have not only enhanced the quality of care but also reduced costs, making healthcare more accessible to the general population. The continued focus on digital health solutions is expected to drive further growth and innovation in the sector.

Government Initiatives Union Budget 2023-2024

The Ministry of Health and Family Welfare (MoHFW) received INR 95,000 Cr, reflecting a 10.2% increase over the previous year. This budgetary allocation emphasizes the governments commitment to improving healthcare infrastructure, expanding digital health initiatives, and supporting public health programs.

• Pradhan Mantri Ayushman Bharat Digital Mission (ABDM): This initiative aims to create a digital health ecosystem by linking health records with a unique health ID, ensuring seamless access to healthcare services across the country.

• National Health Digital Architecture: The development of a robust digital infrastructure for healthcare data management, aimed at improving the efficiency and transparency of healthcare delivery.

• Expansion of Medical Tourism: India has strengthened its position as a leading destination for medical tourism, with new policies aimed at facilitating the entry of international patients and promoting the countrys traditional medicine systems. The Medical Value Tourism (MVT) sector is projected to grow at a CAGR of 22.5% by 2029.

Management Overview

Aatmaj Healthcare Limited, a leader in the multi-specialty and super-specialty healthcare sector, remains committed to delivering high-quality, affordable healthcare services primarily to the middle-class and lower-middle-class segments, which are not covered under the PMJAY scheme. The companys core mission is to provide standardized care at fixed package rates, ensuring transparency and affordability for patients.

Expansion of IVF Centres (HUB & Spike Model)

As part of its growth strategy, Aatmaj Healthcare is set to launch a new vertical focusing on In- Vitro Fertilization (IVF) services, which will be structured using a HUB & Spike model. In this model, a central HUB IVF Centre will operate as the primary facility, equipped with the latest reproductive technologies and a team of specialized consultants. This HUB will be supported by several smaller Spike IVF Centres, strategically located within a 50-100 km radius of the HUB.

These Spike centers will handle preliminary consultations, diagnostic services, and minor procedures, with patients requiring advanced treatment being referred to the HUB center. This model is designed to maximize resource utilization, reduce patient travel time, and enhance access to specialized fertility care in both urban and semi-urban regions. The company plans to open 4 to 6 Spike centers connected to each HUB center, with the first HUB to be operational by end-2024. The expansion into the IVF sector aligns with the growing demand for fertility services in India and the increasing number of couples seeking advanced reproductive treatments.

Launch of Wellness and De-addiction Centres: Well Being Forum

Aatmaj Healthcare has made significant strides in expanding its service offerings with the ongoing development of the Well Being Forum, a dedicated Wellness and De-addiction Centre at its Vadodara unit. This Centre is progressing smoothly and is set to become a cornerstone of Aatmaj Healthcares commitment to addressing the growing needs for mental health and wellness services.

The Well Being Forum will deliver a comprehensive range of services, focusing on holistic approaches to treatment for addiction, mental health disorders, and lifestyle-related issues. The center is offering psychological counselling, detoxification programs, rehabilitation services, and wellness therapies including yoga, meditation, and dietary counselling. A team of seasoned professionals and wellness coaches, is being assembled to ensure the highest standard of care.

In addition to providing clinical services, the Well Being Forum is actively involved in community outreach initiatives aimed at promoting mental health awareness, encouraging early intervention, and combating the stigma associated with mental health and addiction. These efforts reflect Aatmaj Healthcares broader vision of integrating physical, mental, and emotional well-being into its healthcare model.

The Well Being Forum represents a key step forward in Aatmaj Healthcares mission to deliver holistic, patient-centered care, and its successful progress underscores the organizations commitment to leading in the wellness and de-addiction space.

Digital Platform for Healthcare Services

Aatmaj Healthcare is also making significant strides in the digital healthcare space, with plans to enhance its digital platform to offer a more comprehensive range of services. The company is forming strategic partnerships with emerging health tech startups to integrate cutting-edge technologies such as telemedicine, AI-driven diagnostics, and remote patient monitoring into its service offerings.

The digital platform will serve as a one-stop solution for patients, enabling them to book appointments, access their health records, consult with doctors via telemedicine, and receive personalized health advice based on AI analytics. This expansion is in response to the growing demand for digital healthcare services, especially in the post-pandemic era, where patients and healthcare providers alike are increasingly relying on virtual consultations and digital health tools.

By investing in digital health, Aatmaj Healthcare aims to improve patient engagement, enhance the quality of care, and expand its reach to underserved areas, ensuring that more people have access to timely and effective healthcare services.

Aatmaj Healthcare is poised to significantly enhance its digital offerings with the upcoming launch of its proprietary mobile applications on both Android and Apple Store platforms. These applications are designed to provide a seamless, user-friendly experience, enabling patients to manage their healthcare needs conveniently from their mobile devices.

The Aatmaj Healthcare app will offer a wide range of features tailored to meet the diverse needs of patients. Key functionalities will include:

• Personalized Updates: Patients will receive timely notifications and updates related to their health, treatment plans, and upcoming appointments.

• Medical Records Management: The app will securely store patients medical records, making it easy for them to access their health history anytime, anywhere.

• Appointment Booking: Patients will be able to schedule appointments with doctors and specialists at their convenience, directly through the app.

• Online Consultations: The app will facilitate virtual consultations, allowing patients to consult with healthcare professionals from the comfort of their homes.

• Post-Operative Care: The app will feature instructional content on post-operative exercises to aid in recovery and ensure patients are following best practices for rehabilitation.

• Diet Plans: Patients will have access to personalized diet charts created by nutritionists, tailored to their specific health needs and goals.

• Additional Services: The app will offer a variety of other services, including medication reminders, wellness tips, and access to health-related educational resources.

The introduction of this app aligns with Aatmaj Healthcares commitment to leveraging digital technology to improve patient care and engagement. By integrating these comprehensive digital services, Aatmaj Healthcare is setting a new standard for patient-centered care in the digital age.