Anti thesis pointer for discussion on this business.
Company is in to following business lines
1.Medical centre and hospital s. In Uganda and in Nigeria…there are 200 operational beds.additional 50 bed planned at Tanzania.Planning for hospitals in India
2.
health care consultancy services -Offers end to end solutions for other groups (presently up to 1000 beds hospital is planned at Pune and Myanmar.Kenya )
3.Distribution of pharma products and consumables.( from India and new syringe manufacturing unit in Tanzania)
4.Medical travel,(health tourism)
Point for discussion :
Hospital business is high margin business and scalable because health care still underpenetrated.i was betting on this vertical of growth…But at the same time company is offering health care consultancy services to other groups to establish hospital. Thus helping it’s competitors to grow in the field… company may earn few negligible revenue in short-term but in long term its not wise decision.At the same time they are telling they want to establish hospitals in India too .
Is it not a contrarian approach?
Am I missing something?
Do we have any revenue split from company about all this?we have to wait for annual report I think .
We have to concentrate on main source of revenue i.e hospital chains
Disclosure: Invested at 150 level.
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