Commencing our GenNext series, an analysis on how two pioneering players, Narayana Healthcare and Aster DM Healthcare, are grooming the next generation of leaders. By M Neelam Kachhap
Healthcare in India has crawled out from the government’s mandate to flourish as profitable enterprise. The last 20 years have witnessed explosive growth not only in technology and innovation in Indian healthcare but also in delivery models. Both for-profit and not-for-profit organisations alike are making heads turn as they provide world-class healthcare at affordable costs.
So much so that these unique process innovations are being analysed (case-studies at the best B-schools around the world) and promoted as the solution to the world healthcare crisis faced by many developed countries.
This monumental change has been possible because of many visionaries who took up the challenge to bring decorum to the chaotic state of healthcare in India. Be it Dr Pratap Reddy who started the first state-of-the-art multispeciality hospital at Chennai and built it into a million-dollar healthcare conglomerate all the while bringing the best in treatment and technology to the people of India or the late Dr G Venkataswamy who established the largest and most productive eye care facility with good outcomes from limited resources and paved the path for many to follow. There are many others who are not only part of this success story but have been thought leaders as well.
When an accomplished heart surgeon saw that sequential organisation of tasks around the operating table was achieving quick turn-around time for patients in less than half the cost; he created a movement called Narayana Hrudayalaya (now known as Narayana Healthcare-NH). Founder Chairman of Narayana Healthcare, Dr Devi Shetty is world renowned for performing complex heart surgeries, mostly on new born babies but that is not the only thing he is known for. By applying the principles of assembly line production to cardiac surgery he was able to demonstrate that world-class cardiac surgery could be performed at lower costs. Today, Narayana Healthcare is one of the largest multispeciality hospital chains in India with 26 hospitals across 16 cities. Currently, he is applying this frugal thinking to bring down the cost of healthcare in India further.
While Dr Shetty was busy creating a unique healthcare delivery model, another doctor from the southern state of Kerala was thinking of ways to reverse brain-drain from India while delivering quality healthcare, making it both accessible and affordable. Dr Azad Moopen, Chairman & MD – Aster DM Healthcare built the largest network of healthcare facilities comprising over 239 establishments that include hospitals, medical centres, diagnostic and speciality centres, pharmacies, medical colleges, healthcare consultancy and CSR activities, across Middle East and India.
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At a Glance: Narayana Healthcare and Aster Dm Healthcare
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Narayana Healthcare
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Aster DM Healthcare
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| HQ | Bengaluru | Dubai |
| Founder | Dr Devi Prasad Shetty | Dr Azad Moopen |
| Area of operation | India and Grand Cayman at Caribbean | India and Middle East |
| Funding | JP Morgan and Pinebridge Capital had invested $100 million in the company in 2008 for a 25 per cent stake. | In May 2014, existing private equity investors Olympus Capital Asia Holdings (Rs 500 crores in 2012) and India Value Fund Advisors (Rs 175 crores in the company in 2008) invested additional $65 million for 42 per cent stake |
| No of employees | 14,500 people | 10,000 people |
| Network | 29 hospitals across 17 Indian cities with total bed strength of 7500 beds | 4,000 beds across locations. Has 239 units, comprising hospitals, medical centres, diagnostic centres and pharmacies, under six brands – Aster, Medcare, Access, MIMS, WIMS and Aster MedCity |
| Year of launch | 2001 | 1987 |
| Key developments | Acquired two Westbank Hospitals in Howrah for Rs 150 rores | Acquired Cauvery Medical Center (CMC), in Bangalore and Prime Hospital Hyderabad |
| Annual revenue | Rs 800 crores | Rs 2,800 crores |
| Future Plans | Expand in Africa and East Asian countries like Indonesia, Philippines | Further expansion in Middle East (Bahrain, Jordan) and Philippines |
Although both differ in their philosophies and gave birth to two very different healthcare companies, both envision capturing the world healthcare market. Both are family-run business and the second generation is being groomed to follow the parent’s entrepreneurial spirit. While Dr Shetty’s son, Viren Shetty holds the office of Senior VP – Strategy and Planning; Alisha Moopen, daughter of Dr Moopen is Director – Strategy. Healthcare is more than a common interest between these doctor entrepreneurs and their kids. It not only binds their ambition and achievements but also brings together a sense of purpose. Collectively, they are working on a growth path to fight illness with affordable healthcare. It will be intriguing to see how that plan unfolds.