Udaipur-based Indira IVF which runs a chain of fertility clinics across India, will aggressively expand into mother and childcare services and plans to launch up to 25 hospitals across the country, a top company official told Moneycontrol in an interview.
“We are planning to come up with about 10 mother and childcare hospitals in the next two years. These hospitals will span several states and cities, commencing initially in Dehradun, Varanasi, and Pune,” said Dr Kshitiz Murdia, Chief Executive Officer, Indira IVF Group.
In the next five years, Murdia said, the group aims to operate 25-30 hospitals across the country. Indira IVF, in which Private equity firm BPEA EQT has a majority stake, aims to compete with established players such as Rainbow Hospitals, Cloudnine, Apollo Cradle, and Fortis La Femme by offering affordable rates to customers.
According to industry estimates, the Indian healthcare delivery market was at Rs 5 trillion in FY 22.This market is expected to grow at a 15-17 percent compounded annual growth rate (CAGR) and reach Rs 7.67 trillion in FY 25.
Murdia maintained that Indira’s mother and child care services will be more affordable than the current services provided in the country. The chains currently are all catering to a very niche segment of the upper class of the country. “This is a very small target group,” he said.
“There is a huge gap between the Socio Economic Class (SEC) B and C class which is our current target population,” Murdia said. “We want to position ourselves in that population segment rather than going after the elite population and charging high amounts,” Murdia added.
Murdia adds that IVF pregnancies are higher risk and are prone to complications. These cases usually need a Neonatal Intensive Care Unit (NICU) which may not be available in the local maternity homes and might put the child at risk. This forward integration decision will ensure a seamless service though the entire pregnancy and childbirth and neonatal care process.
Mother and childcare services are a high margin, high ARPOB (Average Revenue Per Occupied Bed) service in India. For example, listed player Rainbow Hospitals had an ARPOB of Rs 56,730 in the second quarter of FY 24 with just 1,290 occupied beds.
The Indian IVF industry is intensely competitive, with specialised IVF players as well as multi-specialty hospital chains which offer fertility services and even a few local/ fragmented IVF players. To address the competitive landscape, Indira IVF is strategically expanding its footprint in Tamil Nadu and Kerala, regions where its presence is limited. Additionally, the company is venturing into international markets, with operations set to commence in Nepal and Bangladesh in early 2024.
Indira IVF reported revenues of Rs 1,217 crore and a net profit of Rs 180 crore in FY 23. Originally established as a standalone clinic in Udaipur in 1988.It has since evolved into a key player in providing medical treatments for infertility issues across its 120+ centres nationwide.
Also read: BPEA EQT to acquire majority stake in Indira IVF: Newsbreak confirmed
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