Apollo's Growth Blueprint
Cluster strategy for expansion with greenfield projects in attractive new markets. Plan to add 700 beds by FY22 in Tier-I cities Grow laterally in high potential Tier-II cities Beef up presence in Indian health care retail space with a network of delive
business. “We will focus on few key imperatives like reinforcing our clinical differentiation in specialties like cardiac sciences, orthopaedics, transplants, neurosciences and oncology. Secondly, we will strive to enhance our volumes in robotics and minimally invasive surgeries. Thirdly, we will increase the digital connect for both patients and doctors to help extend reach and amplify productivity”, says Dr Reddy, listing out future plans.
Preetha and Suneeta say Apollo’s expansion spree phase is over for now. In FY ’19, plans are to start a 200 bed Proton Therapy nextgen cancer hospital in Chennai, besides the Oncology block in Navi Mumbai and expanding the Indore hospital. In 2021/22, a 500-bedded superspecialty hospital will come up in Mumbai. The overall spending on these expansions are ` 1,190 crore, of which ` 358 crore has been already spent.
Suneeta and Preetha say future health care is moving towards new small formats like day-care surgical centres, birthing centres, home care and insurance-driven business. The hospitals will be primarily for complex and tertiary care in future. Hence, driving investments into AHLL is part of the future plans.
Digital and technologies also will be key to Apollo’s future, says Sangita, citing an example of an internal assessment that revealed 40 per cent of a nurse’s time was spent on non-nursing activity such as housekeeping or unwanted documentation. Apollo created an intercom connectivity called ‘Dial 30’, which will give patients or relatives information on all queries related to discharge, billing or ambulance. “So far, 17 such processes have been standardised across the system to become more customer-centric, retrain staff and improve efficiency throughputs and speed of operations,” she says. While all the hospitals are going to be digitally mapped and analysed every day with different parameters, each will have an AOP (annual operating plan) depending on the location and local environment.
Passing on the Baton
While business plans for the future are settled, the octogenarian entrepreneur has now enacted a family constitution for the future of Apollo and his wealth. On February 1 last year, the day when Dr Reddy and his wife Sucharitha celebrated their 60th wedding anniversary, all the family members, that included his four daughters and
10 grandchildren, agreed to sign a family constitution.
The future plans include inducting at least one grandchild from families of each of the four daughters.
“For the grandchildren (3 girls and 7 boys, aged between 17 to
34 years), the family constitution, which we signed on February 1,
2017, allows them time to explore other businesses before they come back. To foster meritocracy and transparency in management, the roles will depend on interest, performance and achievements they show in the relevant business,” says Dr Prathap Reddy. The 34-year-old Sindoori Reddy, daughter of Suneeta Reddy, is COO for the Southern Region and overseas 13 hospitals. The
30-year-old Upasana Kamineni is Vice Chairperson (CSR), AHEL, and Managing Director of Apollo Life, which runs wellness centres.
“Anushpala Kamineni, another daughter of Shobana Kamineni, looks after pharmacy and private label. Preetha’s son Karthik Reddy is into education and insurance; Harshad, Preetha’s another son, is into Homecare,” adds Dr Reddy. Karthik is also helping his mother run operations of the Mumbai facility and in setting up the next generation cancer centre coming up in Chennai.
Those who are now working in Apollo like Upasana, Karthik or Sindoori are given targets and milestones to achieve and their growth in the organisation will be purely on merit, say Preetha and Suneeta. Preetha Reddy says Apollo is into all aspects of integrated health care and all the children will have ample responsibilities. Despite all the efforts, will the daughters think of selling off the hospital chain if a cash-rich global chain offers huge money? “For that our DNAs will have to change. We breathed and tasted only health care in our life. I am sure of our generation, but don’t know what will happen in the next generation,” Preetha Reddy concludes with a laugh.