Aatmaj Healthcare Ltd Management Discussions

Annexure - D

Indian Healthcare Industry Overview

As the Indian healthcare sector is reputed to be one of the largest markets, projected to reach $638 billion by 2025, the Government of India has also identified the sector as a crucial growth opportunity in the Union Budget 2025 announcement. With a substantial allocation of Rs 99,859 crore to the healthcare sector, marking a 9.8 per cent increase from the previous fiscal year, significant funds have been earmarked to further strengthen healthcare operations. Additionally, the Production Linked Incentive (PLI) scheme for the pharma industry has been allocated Rs 2,445 crore, reflecting the governments focus on bolstering domestic manufacturing and innovation in the sector. This funding will not only accelerate the expansion of healthcare infrastructure and rural healthcare connectivity but also foster greater healthcare equity.

Further, initiatives such as the introduction of on-arrival visas to promote medical tourism and schemes offering term loans of up to Rs 2 crore to 5 lakh marginalised first-time women entrepreneurs highlight the governments commitment to broadening opportunities.

Building on last years focus on integrating new technologies, which nudged over 77 per cent of healthcare startups to invest in machine learning (ML) and artificial intelligence (AI), the Union Budget 2025 announces the establishment of Indias Centre of Excellence for AI. The expansion of the Atal Tinkering Labs (ATL) initiative, aiming to establish 50,000 ATLs in government schools over the next five years, will further propel research within the Indian healthcare sector.

As private healthcare platforms have improved accessibility by offering remote healthcare services at affordable prices, and government initiatives like the Ayushman Bharat Digital Mission prioritising digital health records, this years budget focuses on providing broadband connectivity to at least 90 per cent of anchor institutions including schools, primary health care centres in rural areas, Anganwadi centres, and panchayat offices by 2030, reinforces Indias drive towards giving much-needed attention to discussions surrounding healthcare equity in the world.

With the Government of India taking significant steps to position the country as a global leader in healthcare innovation, it is essential to recognise the potential impact of these budgetary measures on propelling the Indian healthcare industry forward in 2025.

Government Initiatives Union Budget 2025-26

The government has increased investment limits for MSMEs, aiming to enhance their capacity and competitiveness. Additionally, introduction of a new credit card scheme tailored for micro-enterprises offers a credit limit of Rs 5 lakh to businesses registered on the Udyam portal. The government plans to issue 10 million of these customised credit cards in the first year, providing greater financial flexibility to small-scale entrepreneurs. These measures underscore the governments commitment to strengthening the MSME sector, which currently comprises over one crore registered enterprises, employs approximately 7.5 crore individuals, and contributes around 36 per cent to the countrys manufacturing output and nearly 45 per cent to exports. Furthermore, the establishment of Centres of Excellence for AI with investment worth Rs 500 crore will provide a platform for tech-driven healthcare solutions. Additionally, a new scheme offering term loans of up to Rs 2 crore to 5 lakh marginalised first-time women entrepreneurs highlights the governments commitment to broadening opportunities for women in the healthcare and entrepreneurial sectors. By empowering entrepreneurs with these resources, the government reflects its commitment towards a culture of innovation to improve patient care and operational efficiency, respecting sustainable healthcare business.

With the launch of the initiative Heal in India, the Union Budget 2025 positions India as a top medical tourism destination with the introduction of on-arrival visas for international patients.

The Indian government is actively involved in shaping and strengthening the healthcare industry through various policies, initiatives, and investments. These include the Ayushman Bharat program , digital health initiatives, and increased budget allocations.

Key Government Initiatives and Policies:

• Ayushman Bharat (National Health Protection Mission): This flagship program aims to provide health insurance coverage to a large segment of the population, particularly the vulnerable and economically weaker sections.

• Ayushman Bharat Digital Mission (ABDM): The ABDM focuses on creating a digital health ecosystem by linking health records, enabling digital health IDs (ABHAs), and promoting interoperability between healthcare providers and systems.

• WIN: A digital platform for managing and tracking immunization under the Universal Immunization Programme, aiming for better reach and efficiency.

• e-Sanjeevani: Indias national telemedicine service, providing remote consultations and expanding access to healthcare, particularly in underserved areas.

• National Health Mission (NHM): A comprehensive program focused on improving health outcomes, particularly in rural areas, through various interventions.

• Increased Budget Allocation: The government has consistently increased the healthcare budget, demonstrating a commitment to strengthening the sector.

• Regulation of e-pharmacies and Telemedicine: The government is working on regulating online pharmacies and telemedicine practices to ensure safety and quality.

• Focus on Medical Devices: The government is working on a new bill to regulate medical devices, aiming to improve their safety and effectiveness.

• Promoting Traditional Medicine: Initiatives like the MoU with Indonesia to establish quality assurance standards for traditional medicine highlight the governments focus on integrating traditional and modern healthcare systems.

• Aatmanirbhar Bharat Abhiyan: This initiative includes measures to boost domestic manufacturing of pharmaceuticals and medical devices.

Challenges and Disparities

• Resource Gaps: Despite increased investment, there are concerns about the adequacy of resources, particularly in public health infrastructure.

• Regional Disparities: Significant differences exist in healthcare access and quality between urban and rural areas.

• Quality of Care: There are concerns about the quality of care in some areas, including overcrowding in clinics and a lack of accountability.

• Access to Medicines: Barriers to access to medicines and healthcare services remain a challenge. Future Outlook

The Indian governments continued focus on digital health, insurance coverage, and strengthening infrastructure is expected to further transform the healthcare landscape. However, addressing the challenges related to resource allocation, regional disparities, and quality of care will be crucial for achieving equitable and accessible healthcare for all.

Management Overview

Year 2024-25 was a mix fruit of bunch for the Company as Business at our units locates at Vadodara & Jambusar has grown to 20% -25%. We are getting mix response at our new hospitals at Madhyapradesh at JTP Hospital Indore & JTP Sardar Patel Hospital Badnawar.

As Health sector in India is in transformation process as Government is providing Fix Low price cashless treatment cover under banner of PMJAY (Pradhan Mantri Jan Arogya Yojana) scheme. As every scheme has pros & cons. This scheme also has same -

Pros

1. As free treatment people are easily ready for medical assistance.

2. Less requirement of Marketing & Publicity.

Cons

1. Fix package rate are less than current market rates.

2. Payment cycle is not regular.

3. As profit margin are low so investment in newer technology and senior manpower has always been challenging.

Other Positive Remarks

1. Our new vertical IVF Center 1st two center will be operational by 1st November 2025 one at Karelibaug Area Vadodara & Other at Jambusar Town district Bharuch , Gujrat

2. We are reaching to near financial break even at our TWO unit at Madhyapradesh in financial year 2025-26 I.e. current year

Digital Platform for Healthcare Services

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 Limited 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 Healthcare Limiteds 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.

By Order of the Board	Registered Office
For Aatmaj Healthcare Limited	"Jupiter Hospital", Opp. ICAI Bhavan, Sunpharma Ataladra Road, Vadodara -
Tushar K Suvagiya	390012, Gujarat, IN
Managing Director
(DIN: 06802410)
Jignasa T Suvagiya	Date: 28th June, 2025
Whole-time Director	Place: Vadodara
(DIN: 09702789)