soni medicare ltd Management discussions

(In compliance with Regulation 34(3) read with Schedule V(B) of the Listing Regulations, Management Discussion and Analysis forms part of this Annual Report.)

Indian Healthcare Sector: An overview, Indian Healthcare is one of the largest sectors in the Indian economy both in terms of revenues and employments. The Indian healthcare sector is witnessing remarkable growth, primarily attributed to the improved coverage, services, and augmented expenditure by both the public and private domains. In 2016, the Indian healthcare industry was valued at USD 110 billion, and projected to expand at a CAGR of 22.52%, reaching a size of over USD 372 billion by 2022. This substantial growth potential indicates a vast scope for increasing the accessibility of healthcare services across India, thus presenting abundant opportunities for the healthcare industrys development.

According to the e-Health Market Opportunity Report 2021, the e-health market in India is predicted to generate revenue of $10.6 billion by 2025. The COVID-19 pandemic has opened a host of opportunities for India and the world to accelerate technological advancements in the healthcare industry. With the Governments strong emphasis, India has made significant progress in this field. Considering the countrys immense population and diversity, the sector offers enormous potential and opportunities for growth in the coming years. Also, the Indian healthcare industry is one of the most knowledgeable and professional industries in the world. The sector is one of the most efficient and cost-effective healthcare delivery systems driven by experienced doctors, specialists and Nurses and well-equipped diagnostics. There is immense scope for enhancing healthcare services penetration in India and ample opportunity for the development of the healthcare industry as a whole.

The increasing role of technology in healthcare delivery: Over the last decade, the health and medical industries have undergone significant transformations. This has been made possible by medical advancements and technological progress. The medical field makes unique discoveries about treatments, data collection, symptom, and disease / cure research, which offers many more clinical options to patients. Many hospitals in India have identified making investments in technology as a pathway to delivering better clinical outcomes. The timely adoption of advanced technologies has enabled the availability of and supported advancements in robotic surgeries, radiation surgery or radio therapies with cyber knife options, intensity modulated radiation therapy, image guided radiation therapy, transplant support systems, and advanced neuro and spinal options.

Rising Investments in the Indian Healthcare space: The Indian healthcare sector is among the fastest growing sectors with high contribution not only in terms of revenue, but also employment. It includes hospitals, medical equipment and devices, health insurance, telemedicine, clinical trials and medical tourism. Infusion of long-term capital in the healthcare space goes a long way in strengthening the healthcare infrastructure of the country. Demand growth, cost advantages and policy support are some of the factors that have been playing a very important role in attracting FDI in the healthcare sector. When it came to prioritizing resources, healthcare in India was always given a lower importance, but with the outbreak of the COVID-19 pandemic, all stakeholders realized the importance of prioritizing healthcare, as the pandemic highlighted the countrys lack of preparedness, resources, and infrastructure to fight and overcome the pandemic. According to the Department of Industrial Policy and Promotion (DIPP), between April 2000-June 2022, FDI inflow for the drugs and pharmaceuticals sector stood at US$ 19.90 billion. In the same period, there was an inflow of US$ 8.09 billion and US$ 2.71 billion for the hospitals and diagnostic centers sector and the medical and surgical equipment industry, respectively. The Indian healthcare industry has attracted the interest of leading global private equity firms and venture capitalists over the last few years. The strong support of PE funding has fueled the growth of multi-specialty and single-specialty hospitals in India. Many multinational corporations have attempted to expand their presence by forming partnerships and making investments.

It is human nature to take things for granted that are gifted to us. It is only when a resource becomes neglected or is taken for granted, that it is missed and its absence regretted.

Retail Healthcare: The concept of ‘Retail in healthcare refers to providing opportunities for clinical consultations closer to home, beyond the confines of a hospital. The fundamental principle of

‘Retail Healthcare is to cater to the healthcare needs of consumers at their doorstep. Currently, patients seek convenience when selecting a healthcare provider, and they increasingly prioritize proximity over distance, preferring shorter wait times, same day scheduling, and extended hours (including weekends). Consequently, Retail Health is becoming an avenue for delivering quality, convenient healthcare services to numerous consumers and serves as a model for healthcare systems to consider when catering to new and existing patient groups.

Changes in consumer preferences and increased use of technology have successfully influenced the shift to retail healthcare. Retail healthcare starts with preventive care and progresses to the treatment of low-complexity cases. The primary goal of retail healthcare is to provide a variety of high-quality services at reasonable prices in convenient settings. Healthcare providers are designing locally relevant spaces that are tailored to specific needs in order to meet consumers demand for convenience and flexibility. These areas are primarily concerned with vaccinations, patient education, information sharing, specimen collection and reporting, wound dressing and aftercare, injections, and teleconsultations. One of the recent healthcare trends around the world, and in India too, is the emergence of Day-care hospitals. Day-care hospitals are more than an outpatient clinic and less than a full-fledged hospital. Day care hospitals provide comfort and convenience to the patient and family. They also provide access to the expertise and experience of the panel of doctors that a traditional hospital has, but minus the hospitalization.

Over the last decade, retail healthcare has undergone significant development worldwide. All sectors encompassed by the Retail Healthcare framework represent a substantial opportunity in the healthcare industry, with considerable unexplored prospects that could enhance Indian healthcare providers outreach into local communities and neighborhoods.

We at Soni group take this responsibility very seriously while we continue to focus on providing best-in-class medical treatment across all specialties of care. Our focus since inception has been on right diagnosis and accurate treatment planning before getting into the actual treatment itself and we continue to invest in some of the best technologies available on this front across all our hospitals. We continuously aim at improving our standards of clinical care to ensure all our hospitals deliver safe and quality care to patients, irrespective of location and size through.

For us, the patient is at the center of whatever we do or plan for, and patient care is the reason for your companys existence, very precious resources for the patient.

Opportunities & Risks:

• Increased Digitization of Healthcare Solutions

• Changing Consumer preferences and delivery formats

• Preventive Health and Wellness

• Medical Value Travel

• Underserved and Poorly Served Markets

• Favorable Demographic Profile

• High cost of resources

• Highly Competitive Industry

• Scarcity of Skilled Manpower

• Changing Government regulations