Mahatma Gandhi Mother Teresa Institute of Medical Sciences
( MGMTIMS)
A world class Super Speciality Hospital
Making Healthcare Humane, Affordable to All
Campus: Village Peeliyo & Khushalipur, Distt. Saharanpur
www.mgmtims.com
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Key Highlights Summary

Product : A world class Super Specialty Hospital with 1500 beds along with
a Dental, Nursing and Medical College

Location : Most Strategic in Saharanpur District covering a population of
282 million spread over 6 contiguous States

Land : 1000 acres already acquired by Promoters (Market value at US $ 100
Million or INR 600 cr)
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Other marketable assets : 100,000 teak plantations having a current
market value of US $ 500 million (INR 3,000 cr) and a maturity value of US
$ 2 billion by 2024.

Excellent financial track record of group companies: Group companies of
promoters have excellent track record of meeting financial targets. Banks
have sanctioned INR 35 crores in FY 2014 for various projects of Group
Companies.

Team Capabilities : A robust combination of Senior Management and
Medical professionals with rich cross-functional domestic and global
experience.
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Key Highlights Summary – contd.

Opportunity Attractiveness :
- Gap in hospital beds waiting to be filled : Just 1.3 beds per 1000
people today against a minimum requirement of 2.0 beds per 1000 people
by 2017
- Perceived Gap in quality of customer experience that gives us an
opportunity to take a preferentially differentiated positioning stance
- Can partake in the fast growing Medical Tourism market expected to
reach US $ 3.9 billion in 2014 at a CAGR of 29 %

Financial Viability Attractiveness :
- EBIDTA (1st 3 years of complete operations) : INR 2,642 cr
- Break even in 2nd year of operation/ 4th year from Construction
- Net Profit Margin : 34 % after 5 years of operations

Funding Requirement :
- INR 2,184 cr from Banks / Financial Institutions
- INR 600 cr from Private Equity Investors

Exit Option for Private Equity Investor: Through an IPO being planned in the
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year 2016-17
Location Co-ordinates
Locational Coordinates
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MGMTIMS – A Backgrounder

Conceptualized in 2013 with a vision to find a pride of place amongst some of the largest
hospitals in the world.

More than 1000 acres of land in Saharanpur District already acquired by Promoter from his
internal resources. Of the 1000 acres, 150 acres are earmarked for the Hospital, Dental ,Nursing
and Medical College.

MGMTIMS has sufficient collateral for seeking investment. Its land asset is valued at US $ 100
Million (INR 600 cr). Other assets includes 100,000 teak plants having a market value of US $ 500
Million as on present date and having a maturity value of US $ 2 Billion by the year 2024.

Group companies of promoter have an excellent track record of meeting financial targets over the
past 2 decades. Banks have sanctioned a further NR 35 crores in FY 2014 for various projects.

MGMTIMS is uniquely positioned to address the woeful Health Infrastructure in India due to the
following factors :
- Strategic location : Can cater to a target population of 282 million in 6 major densely
populated North Indian States – Punjab, Haryana, Uttar Pradesh, Uttrakhand ,Himachal
Pradesh and Delhi.
- Demand outstripping supply : Addition of 1500 beds would be one of the steps to address
India’s bed requirement of a minimum of 650,000 beds by 2017 . As per WHO statistics
(2013), India has only 1.3 beds per 1,000 population, significantly lower than the other
BRIC economies and the WHO guideline of 3.5 beds per 1,000 population .
- Increased Govt. spending on health care : Total annual health care spending is expected
to more than double from 2012-2017, to $201.4 billion, an average annual growth rate of
15.8 percent.
- Fast growing Medical Tourism market : Expected to expand at a CAGR of 27 percent to
reach $3.9 billion in 2014 from $1.9 billion in 2011
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Our Team –Experienced Professionals with Global exposure
MGMTIMS is guided by a team of experienced professionals having Global Exposure.

Dr. Umang Sahai - MBA ,PhD – Previously Group CEO of $ 6.4 billion International Trading
Group dealing in Textiles & Apparels. 35 years experience in Industry Verticals like
Healthcare, FMCG, Real Estate, Software, Hospitality, Commodities, Textiles, Auto
components etc.
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Mr. Karanvir Singh - Experienced and successful businessman with wide range of business
interests in Western U.P, India. Business interests include Sugar Works, Road Transportation,
Mechanical and Civil construction during the last 50 years.

Mr. Ajay Sachdeva – MBA ( IIM Ahmedabad)- Core competencies include Corporate
Planning, Business Strategy, Marketing and Managing start-up ventures. Ajay has been
associated with a diverse set of corporations spanning FMCG, Hotels, Consumer durables,
Telecom, Apparels, Two-wheelers and Lifestyle products during the last 35 years.

Dr. D.D.Choudhary- B.Sc., MBBS-40 years experience in Medical field. Renowned physician.
Recipient of numerous honours and rewards from Central and State Governments.

Dr. Hari Om Pande –MBBS, MS- 35 years experience in Medical field .Performed 1 lac plus
surgeries. President - IMA Uttarakhand, Chairman of 110 bed Pandey Hospital, Bazpur ,
Uttarakhand.

Mr. K.S.Sundar – CA ( Alumni PwC) - 20 years experience in Industry verticals –
Pharmaceuticals, Telecom, Energy, Retail, Aviation support, Insurance, Automotive and
Construction.
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Dr. Umang Sahai
Chairman & Managing Director
“MGMTIMS is uniquely positioned to serve the tremendous demand
for quality healthcare in the region”
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The Opportunity Space for MGMTIMS
FACTOR # 1 : Huge patient population and inadequate medical infrastructure
Healthcare sector and MGMTIMS in particular, is poised for a huge growth due to the following factors :

MGMTIMS is strategically located in proximity to 6 densely populated North Indian states. There is a
tremendous need for quality Healthcare in these 6 states with a huge population of 282 Million
( UP -199 M , Punjab – 27 M , Haryana – 25 M ,Delhi – 16 M, UK – 10 M ,HP- 7 M )
(http://www.census2011.co.in/states.php).

MGMTIMS would help in reducing the distance between Doctor and Patient . A recent PwC report
“Enabling access to long-term finance for healthcare in India ( 2013)” ,
(http://www.pwc.in/publications/publications-2013/enabling-access-to-long-term-finance-forhealthcare-in-india.jhtml) states that 45% of the population travel more than 100 kms to access a
higher level of care. To state an example, a daily train from Bathinda to Bikaner ( 365 kms distance)
is nicknamed “Cancer Express” to highlight the fact that it is filled with cancer patients travelling
far off distance for getting cancer treatment.

PwC report points to the Huge Non Communicable Disease Burden in India not being able to
cater to by the existing infrastructure :
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Cardiac – 50 Million Patients (mere 1050 cardiac centres, adequate to perform about two
million angiography procedures),
Diabetes – 63 Million Patients,
Cancer – 1.2 Million new cases every year (only around 325 comprehensive cancer centres,)
Stroke – 0.9 Million cases every year
Renal – 175,000 transplants required every year.
India has a mere 90 PET and CT scanners, 1,300 MRI scanners and around 1,400 CT scanners
(above six-slice).
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The Opportunity space for MGMTIMS – Factor # 1 (contd.)

MGMTIMS is a step towards addressing the need for a minimum 650,000 beds by 2017.

The present 1.6 million beds in the country are spread over an estimated 55,000 hospitals
which translates to an average of 30 beds (approximately) per hospital. About 42,000 of the
hospitals in India are nursing homes with an average bed capacity of 20 to 25 beds. The
resultant challenge for India is the need for investment to improve access to both primary and
tertiary care.

The addition of 650,000 beds in India by 2017 will require a capital investment of 162,500
crore INR (approximately 26.2 billion USD at the current exchange rates). This translates to
more than 50% of India’s annual healthcare expenditure.
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The Opportunity space for MGMTIMS (contd.)
FACTOR # 2 : Increasing spend on Healthcare
MGMTIMS would be benefited by increasing Health care spend.

According to Deloitte report 2014 Global health care outlook Shared challenges, shared
opportunities (https://www2.deloitte.com/content/www/global/en/pages/life-sciences-andhealthcare/articles/2014-global-health-care-outlook.html) spending on health care in India is
estimated to be five percent of GDP in 2013. Total annual health care spending is expected to more
than double from 2012-2017, to $201.4 billion, an average annual growth rate of 15.8 percent.

Socio – economic factors which are spurring the double-digit growth registered by India’s health care
industry , include :
 Increasing sales of generic medicines (under its $5.4 billion policy to provide free generic
medicines to the Indian people),
 Continued growth in chronic therapies, and a greater penetration in rural markets.
 Heightened health awareness,
 Increasing affluence,
 Changing lifestyles resulting in higher incidence of related diseases,
 Greater penetration of health insurance has also aided the growth in health care spending. The
Indian government plans to cover health insurance for 80 percent of the population by 2020
under its Health Insurance Vision 2020 (released in December 2013).
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The Opportunity Space for MGMTIMS (contd.)
Factor # 3 : Fast Expanding Medical Tourism market
The proposed Infrastructure and location of MGMTIMS would be a big factor to attract Medical Tourism in
the region.
The global demand for low-cost, sophisticated medical treatments is expected to drive opportunities in
the Indian medical tourism market. India has been experiencing an influx of patients from Africa,
Commonwealth of Independent States (CIS) countries, the Middle East, Pakistan, Afghanistan,
Bangladesh, and Myanmar for organ transplants and orthopaedic, cardiac, and oncology problems.
The medical tourism market is expected to expand at a CAGR of 27 percent to reach $3.9 billion in 2014
from $1.9 billion in 2011
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Encashment of Opportunity – significant revenues clocked by even
small Hospitals from small towns .

The present Health Infrastructure is characterized by small and medium sized players offering less
than quality care and still making enormous profits.

There are numerous examples of small hospitals in small towns which have an average daily
turnover of Rs. 0.5 million by offering a very minimum basic quality of healthcare.
- Indira Infertility & Test Tube Center, Udaipur has a yearly turnover of Rs 800 mill.
- One of the leading testing laboratories, Dr. Lal Pathlabs has a daily cash collection of Rs. 70
mill.
- A small testing laboratory in Dehradun, Dr. Ahuja's lab ,has a daily cash collection of Rs. 2 mill
Dr. Pandeys Hospital at Bajpur has a daily turnover of Rs. 1 mill through surgeries and other
services.
- Prakash Hospital, Kashipur has a daily turnover of Rs. 0.5 mill largely from surgeries.
- Ashirwad Hospital has a daily turnover of Rs. 0.5 mill by performing cosmetic surgeries on
patients from US and Europe
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Encashment of Opportunity – The MGMTIMS Hospital Advantage
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MGMTIMS is uniquely positioned to address the opportunities presented due to the following factors :
 A huge extent of more than 1000 acres land has already been acquired in a strategic location
which is well connected to 6 of the most populous states in India.
 Chairman of the Board is well respected in the field of healthcare and running one of leading
blood banks in Asia.
 One of the directors is recipient of numerous National and state honors for the tremendous
amount of dedication in the field of Healthcare. Another director has the distinction of
performing more than 1 lac surgeries over the past 35 years and is at present running a very
successful healthcare practice in Uttarakhand.
 Majority of the Board members have global exposure of working in leading MNC organizations .
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 Promoters have the necessary expertise in managing the local and Governmental regulations
having been successfully running Business operations in the area for close to 2 decades.
An association with the world class hospital – Queen’s Elizabeth, Birmingham, UK is being considered
for purposes of drawing upon their rich experience in delivering state-of-the art services, equipment
and system support
The world class 1500 bed Hospital being set up by MGMTIMS would be equipped with all modern ,
state of the art equipment and instruments to render the best and quality health care at an
affordable cost to one and all . MGMTIMS would be setting up Specialized Departments of Medicine
and Surgery, Paediatrics, Ophthalmology, Orthopaedics ,Physiotherapy, Radiology ,ENT,
Dental,Obstetrics and Gynaecology, Cardiac, Nephrology etc.to bridge the enormous gap in supply of
expert care in these critical fields.
During the second phase of expansion a dental college of 150 seats and 300 seats nursing college
would be set up along with 400 seats medical college.
MGMTIMS will be amongst the largest medical and wellness facility in the world. MGMTIMS would be a
Holistic and wellness destination having a Medical Institution, Medical College, Nursing College,
Centre for Ayurveda and alternative medicines and a Wellness/Rejuvenation spa .
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Competitive Matrix
Resources of all major Hospitals are overstretched.
For comparative purposes , we have taken a list of the Best Hospitals in nearby vicinity as per the
WEEK NIELSEN Survey 2013
(http://week.manoramaonline.com/cgibin/MMOnline.dll/portal/ep/theWeekContent.do?contentId=15507885&programId=1073755753&tabId=7&
BV_ID=@@@&categoryId=-209981)
Delhi – 190 kms . Major Hospitals in Delhi being :
 AIIMS – Delhi
 Indraprastha Apollo Hospitals
 Sir Ganga Ram Hospital
 G.B.Pant Hospital
 Ram Monohar Lohia Hospital
 Maulana Azad Medical College
Gurgaon ( Haryana) – 212 kms . Major Hospitals in Gurgaon being :
 Medanta – The Medicity
 Max Super Speciality Hospital
 Fortis Hospital
Chandigarh( Punjab) – 136 kms . Major Hospitals in Chandigarh being :
 Postgraduate Institute of Medical Education & research
Dehradun ( Uttarakhand) – 68 kms. Major Hospitals in Dehradun being :
 Doon Hospital
 Himalayan Hospital
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Competitive Matrix – Long waiting period for consultation and
treatment.
MGMTIMS is guided by the philosophy of making healthcare Humane, Affordable to All. The present
health system is characterized by overcrowding , long waiting time for treatment, Inadequate care,
crumbling infrastructure and indifferent staff.
Every large multi Speciality hospital in every city of India is facing a situation of large patient queues
waiting to get an appointment with the Doctor and thereafter waiting to get Hospital admission for
suggested course of treatment. A few such examples :
•
Synergy Hospital , Dehradun a 120 bed Hospital with a 32,000 sq.ft covered area set up in September
2013 is not able to handle the daily influx of patients. At any given time ,200 patients are waiting in
the lobby for appointment .
•
Apollo Hospital , one of India’s premier Hospital Chain, has more than thousand people waiting at any
given time in the lobby . That being the state where the daily cost of treatment per patient averages
Rs. 0.1 Mill.
•
Similar conditions prevail in other premier Hospitals like Medanta Medicity Hospital and Fortis group
of Hospitals.
•
India’s top referral Hospital, AIIMS has more than ten thousand people waiting around the campus for
appointments with doctors and has a 6 months waiting period for any type of surgeries.
•
A recent sting by a news channel , Zee TV, of the conditions of maternity ward of large Delhi
Government Hospital , had three pregnant women sharing one bed, out of which one had delivered a
premature baby and the rest were waiting for delivery.
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K.S.Sundar
Director Finance
“MGMTIMS offers attractive returns to investors. Net profit Margin
would be 34 % after 5 years of operations”
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Financial snapshot
Total Revenue
INR 2,915 cr
( Year 3 start to Year 5
end)
Capital Expenditure
INR 3,384 cr in 5 years.
( Year 1 start to Year 5 end)
EBITDA
INR 2,638 cr
( Year 3 start to
Year 5 end)
Profit After Tax
INR 317 cr
( Year 3 start to Year 5 end)
Profit Margin
11% in 3 years ( Year 3 to
Year 5)which increases to
34% in 5 years ( Year 3 to
Year 7)
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Revenue Model and Business Financials
MGMTIMS has a robust revenue stream with attractive margins.

Hospital revenues would come from 2 main streams – In-Patient and Out-patient.

In- Patient Bed Revenue would be categorized into 3 buckets , namely Low ,Mid and Premium
range with per patient day charges of INR 500 ,INR 10,000 and INR 75,000 respectively to start
with and raised to INR 15,000 and INR 90,000 for Mid and Premium end in the 3rd year of
actual operations.
In –patient admissions would start from the start of 3rd year ( 25th month) when the first 300
beds would be operational . Bed capacity would be doubled to 600 beds in the next 6 months
( 31st Month onwards) and finally to 1500 beds by start of 5th year (49th month onwards).
MGMTIMS would clock a total revenue of INR 2,795 crores from in – patients during the first 3
years of actual operations ( Year 3 start to Year 5 end).
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Out-patient comprises of OPD and Lab tests. Per day OPD and Lab tests would average from
350 patients during the first 90 days to 3800 by the end of 3rd year of operations ( year 3
start to year 5 end) .
MGMTIMS would clock a total revenue of INR 121 crores from Out -Patients during the first 3
years of actual operations ( Year 3 start to Year 5 end).
Staff salary and Hospital consumables constitute the major portion of Revenue Expenditure.
Capital expenditure would be INR 3,384 crores during the first 5 years( Year 1 start to Year 5
end) . Capital expenditure includes construction costs for the buildings -Hospital , Medical
college and staff quarters , Purchase of machinery, instruments, and Furnitures .
EBITDA for the first 3 years of the actual operations( Year 3 start to Year 5 end) would be INR
2,638 crores.
Net profit after tax for the above period would be INR 317 crores with a Net profit margin of
11%.
Net Profit Margin increases to 34% after 5 years of actual operations( Year 3 start to Year 7
end) on Total net Sales of INR 6,756 crores during this period.
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Investment snapshot

Investors have sufficient comfort in the form of land and plantation assets held by
MGMTIMS

Land assets - 1000 acres land valued at INR 600 crores ( US$ 100 m)
Plantation Assets – 100,000 Teak trees having a present value of Rs. 3000 crores(
US$ 500 m) and maturity value of INR 12,000 crores ( US$ 2000 m) in 2024

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Other plantation assets are in the form of Guava, Mango , Litchi orchards.

Break even point is at the 4th year of the start of construction( 2nd year of operations).
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Total Net Profit after Tax is INR 2,321 crores ( US$ 387m ) with a net profit margin of
34% ,on completion of 5 year of operations.

Total capital expenditure is INR 3,384 crores( US$ 564 m) out of which INR 600 crores(
US$ 100m) has already been spent by promoters out of their own resources on land
acquisition.
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Promoters solicit INR 600 crores ( US$ 100m) from private investors towards a
significant equity stake.

The rest of the funding, INR 2,184( US$ 364m), would be available from Banks and
Financial Institutions
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MGMTIMS – The Robust Value Proposition – SWOT Analysis
Strengths

Strategic Location to 6 most populous states in India.

One of the largest land banks in the world. Facilities offer ample scope for scaling up.
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Sufficient collateral to offer comfort to investors.

Management well respected in medical community and having excellent local business
knowledge and Global exposure.

Excellent track record of meeting financial targets by Group companies over the past
2 decades. Banks have sanctioned further loans during FY 2014.

Potential tie ups with leading Global Medical Institutions – Queen Elizabeth Hospital,
Birmingham UK.
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Project offering excellent returns to investors.
Weakness
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Uncertainty in the political environment.
Opportunities
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Inadequate medical infrastructure.
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Increased affordability to healthcare due to various factors.
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Medical Tourism from nearby countries
Threats

Competition from small and medium sized hospitals
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Thank You
For Further Information :
Contact:
Dr. Umang Sahai – CMD
cmd@mgmtims.com
Mobile - +91-9873383940
K.S.Sundar
Director Finance
finance@mgmtims.com
Mobile - +91-9940057766
Website : www.mgmtims.com
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