Corporate Finance Project Appraisal And Feasibility Studies Mergers and Acquisitions Advisory Business Advisory
Teaser
An interesting business acquisition opportunity
in a super Speciality Eye Care Centre in NCR, Delhi
15 May, 2015
BIOR Venture Advisors Pvt. Ltd. 1st Floor, B-23A, Gaurav-deep Tower,
Sector- 62, Noida-201301 Private & Confidential
• OPTHA was incorporated in the year 2004, as a Private Limited company.
• Ventured into a Eye care business with Retina clinic, then set up advanced diagnostic equipment, optical and pharmacy verticals alongside.
• Today, it has 7500 square feet of operating space.
• Integrated proposition of optical to OPD under one roof provides patients with seamless treatment.
• Presence of high qualified and experienced doctors assuring delivery of highest quality treatment.
• OPTHA’s has so far served 75000 to 85000 customer base over the period and is among the preferred eye super- specialty centre in the NCR.
• OPTHA’s patient centric approach and a one stop quality eye care solution has helped the hospital gain high reputation and customer base over the last decade.
PROJECT OPTHA: BUSINESS OVERVIEW
OPTHA’S KEY SERVICE AREAS
.
General OPD Pharmacy Op1cal
In-house pharmacy for meeting requirements
and one stop solution for serving patients needs
Detailed three step eye examination procedure by general doctors and
specialized experts
High quality surgery with global standards latest
equipments and by experienced and qualified doctors
e hospital gain high reputa/on and customer base over the period.
Bouquet of surgeries
.
Well managed optical centre for providing quality lens and eyewear solutions
to the patients
Optha’s patient centric approach and a one stop quality eye
care solution has helped the hospital gain high reputation and customer base over the period.
MARKET OPPORTUNITY
Ø 90% of the world’s visually impaired lives in developing countries.
Ø Out of 19 mn children , globally 12 mn children suffer visual impairment from refractive errors.
Ø In India close to 80 mn people are expected to be diabetic by 2030, who will develop Retinapathy at some point of time in their lives.
Ø Indian eye care market has set to grow at 10% YOY in next 5 years, of this healthcare delivery segment is expected at 15% YOY.
MD & CEO
Finance & Accounts
Manager (1) Executive (1)
HR, Admin & IT
Executive (1)
CRM, Marketing & Supply Chain
Team (2)
Doctor (3) Mgt. – Operation
Front Desk (3)
OT Technicians (2)
Optometrists (3)
Pharmacy (1)
Support (2)
OPTHA’S - ORGANISATIONAL CHART
PROJECT OPTHA – SWOT ANALYSIS
Strengths v 10 Year brand with strong customer loyalty. v Took first mover advantage in organizing
'eye-care' in NCR. v Based on the concept of ETWR or
Expertise, Trust, Warmth & Range. v Strong employee loyalty. v No legal cases. v Business increased over the period of time
because of strong 'word of mouth’.
Weaknesses v Sourcing of junior doctors or resident
surgeons is difficult because of lack of networking.
v Some important treatments like retina, cornea etc. are not delivered full fledged because thorough investments in P&M was not done, because of our focus on Wellness Now.
v Lack of training facility to train doctors for surgeries etc.
Opportunities v Cost saving opportunity because of
economies of scale. v Better 'terms negotiation with TPAs. v Metro becoming functional within a year,
will further increase footfalls because of very proximity to National Highway (NH).
Threats v Increase in organized players poses a huge
competition. v Doctors shifting loyalties because of better
pay.
HISTORICALS- FINANCIAL SNAPSHOT
Particulars FY 2011-12 (in Millons)
FY 2012-13 (in Millons)
FY 2013-14 (in Millons)
Eye Care 23.16 25.82 25.38
Optical Sale 3.95 4.70 5.04
Pharmacy 1.05 1.01 1.07
Total Revenue 28.16 31.53 31.49
Cost of Good Sold 5.81 6.87 7.13
Gross Profit 22.35 24.66 24.36
G.P. Margin 79.37% 78.21% 77.35%
Salary 8.86 8.62 9.25
Other Indirect Exp. 3.12 2.97 2.86
Total Indirect Cost 11.98 11.59 12.11
EBIDTA 10.37 13.07 12.25
EBIDTA Margin 36.83% 41.45% 38.90%
• Disclaimer BIORx Venture Advisors Pvt. Ltd. Company works to advance healthcare and biotechnology innovations and create the maximum value for inventors and investors. We offer proven experience and assistance to start-up Life Sciences and Healthcare businesses. No part of this material may be duplicated in whole or in part in any form and or redistributed without the prior written consent of BioRx. This material is confidential to the recipient and should not be reproduced or disseminated to anyone else. The purpose of this document is to provide information to assist the recipient in obtaining a general understanding of the opportunity. This document should not be construed to be a prospectus or any offer or invitation to subscribe for, underwrite or purchase securities nor shall it or any part of it form the basis or be relied upon in any way in connection with any contract relating to any securities. The document does not purport to be all-inclusive or to contain all information that the recipient may desire.
• The recipient should not treat the contents of this document as an advice relating to legal, taxation or investment matters and should consult its own professional advisors.
• The document includes / may include certain statements, estimates and projections based on the anticipated future performance of the opportunity, and/or various assumptions concerning anticipated results etc., which assumptions / assessments may or may not prove to be correct. Actual results may vary from the projected results contained herein. It should be recognized that projections of future events are inherently subject to significant economic and competitive uncertainties and that actual results for the periods covered thereby may vary materially from the projected results. There cannot be any assurance that the results contained in the projections will be realized.
• Further, the information contained in this document may undergo change, however, BIORx Venture Advisors Pvt. Ltd. Company is under no obligation to update, amend or supplement the information contained herein. In furnishing this document, BIORx Venture Advisors Pvt. Ltd. Company is not obligated, in any manner whatsoever, to provide the recipient with access to any additional information. It is explicitly understood that the recipient of this document will perform its own independent investigation and analysis of the opportunity, risks involved in the same etc. The information contained herein is not a substitute for the recipient's independent investigation and analysis. BIORx Venture Advisors Pvt. Ltd. Company does not accept any liability for damages and/or losses suffered as a result of decisions made or actions taken based on this document or any additional information which may be provided.
• For more information, please contact the following person: • Vishal Gandhi
• CEO & Managing Partner • BIORx Venture Advisors Pvt. Ltd. Company
• M: +91-9810702334, +91-8130155077 • Email: [email protected]
