Ziqitza healthcare has been one of the success stories in the PPP segment and are now making their mark in the ambulance outsourcing space. Naresh Jain, CEO, Ziqitza Healthcare and Manish Sacheti, CFO, Ziqitza Healthcare, share the success strategy
Ziqitza Healthcare has been expanding its ambulances outsourcing business. What is your vision to take this forward?
Jain: Currently, hospitals have come to the realisation that managing ambulance services is a very difficult and cost consuming task. Managing more than two to three ambulances at times shifts the force of the healthcare provider. Many a times hospitals complain that when they require an ambulance either the driver is not available or there is some or the other problem. Even the maintenance of these services involves a huge cost component. That’s why an outsourcing option can be beneficial. Hospitals receive an ambulance when they need it and there is an agency responsible.
For the entire service which saves them time, cost and more importantly ensure better quality of service.
Where the market is concerned, this segment has immense opportunity both in the private and in the public sector. Players such as EMRI has been primarily focusing on the government sector and therefore we find great value in the private sector as there are very few players in this space.
This trend has picked up momentum across India and therefore the focus on this business segment is expanding. We are tying-up with private hospitals chains, large corporate houses from various sectors, industrial plants, warehouses and large organisation with more 3000 employees as well as PSUs. More so, we are also partnering with startups such as Flipkart, etc., to provide them with our ambulance services.
How much does ambulance outsourcing contribute to your total revenue?
Jain: Although this segment has huge potential, we still need to make in roads in the market. Primarily, this business requires a huge investment and that is a constrain to the growth. Currently, this business contributes to around 15-20 per cent to our overall business.
What is Ziqitza Healthcare’s overall turnover in 2016-17?
Sacheti: The turnover for Ziqitza Healthcare in India for FY2016-17 was close to Rs 193 crores. This includes the PPP business, private ambulance service, ambulance outsourcing business and EMT training services.
What are your projections for 2017-18?
Sacheti: We are looking forward to grow at 30 per cent in 2017-18 and working hard to achieve the same.
What is your opinion on venturing into the air ambulances services to expand your business?
Jain: Well currently, we are focusing on expanding our outsourcing business. Nevertheless, there is scope in this segment too and we will be exploring opportunities in this space at a later stage.
Ziqitza Healthcare has been a successfulin its PPPs. Tell us your mantra for success.
Sacheti: There is no magic mantra to success and like all businesses we put in our best efforts and hope for good results. The partnership with the government is no different except that there are extensive processes and protocols involved. While the government has a very robust framework for the scope of work, one needs to understand that we face a lot of unexpected events and our drivers and paramedics have to tackle these unforeseen situations with quick decision independently. Infrastructure development also plays a very important role in ensuring the overall quality of services. Hence, we need to work in co-operation with the government to make sure that we get their support to offer the best services to the people.
We have been in this industry for over a decade and hence, we understand the fundamentals of the ambulance business, which helps us to service the sector better. The PPP model introduced by the government is a transparent model as compared to the MoU model. This model helps in increasing efficiencies and competency contributing to a successful partnership.
Jain: Right from the beginning, we have opted for the tender model to do business with the government and this has helped us achieve success.
What are the advantages of the tender model?
Jain: Well, the tender model sets clear guidelines for the business process. It has defined goals for each party and has clear deliverables. This ensures that both stakeholders are responsible for the success of this project. Moreover, it also ensures smooth functioning of the various stakeholders involved in the process.
Tell us about the number of partnerships with the government?
Sacheti: We have signed five contracts with the government under the public-private partnership model. The states where we have partnered are Punjab, Jharkhand, Odisha, Madhya Pradesh and parts of Bihar.
How much time do you take to have your ROI in this business?
Sacheti: We are in the business of saving lives and though earning profit is one of our objectives, it is not our only objective. We put in our best efforts and all required investments in upgrading our services to increase efficiency from time to time. There are certain guidelines and protocols which are set by the government with regards to the payments. We adhere to these guidelines hence the payments come in as scheduled by the government.