1 AIT Asian Institute of Technology

Financing exponential growth in the Indian health care sector

AuthorLakshmanan, Shiva
Call NumberAIT RSPR no.SM-06-21
Subject(s)Medical care--India--Finance

NoteA research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management
PublisherAsian Institute of Technology
Series StatementResearch studies project report ; no. SM-06-21
AbstractWith a preference for private healthcare, changing demographics, raising incomes and high population, India is a prime candidate for exponential growth in the Health care delivery. The market potential is estimated at 26% CAGR. The sector is further characterized by high capital expenditures and considerable volatility in earnings. The opportunity for corporate health care providers in the market is immense. The Indian market dynamics being different from that of developed nations, private players have already taken a lead by successfully implementing models that cater to the context. In order to support an aggressive growth curve, managers need to be able to take risks and share the appetite with investors. This is made possible through the use of innovative financial securities. The study looks at a model for Apollo hospitals wherein the use of LYON is suggested. Further, the pay-off analysis is done and the instrument is valued. A saving of 10% is seen in this case when compared with a vanilla debt instrument. The study also sees the need for appropriate regulations to be developed to promote healthy growth and foster better market discipline
Year2006
Corresponding Series Added EntryAsian Institute of Technology. Research studies project report ; no. SM-06-21
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Tang, John C.S.;
Examination Committee(s)Kouwenberg, Roy;Beise-Zee, Rian;
Scholarship Donor(s)AIT Fellowship;
DegreeResearch Studies Project Report (M.B.A.) - Asian Institute of Technology, 2006


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