What is the basic concept behind setting up The Cradle?

Birthing is not an illness. On the contrary, it is possibly the most cherished wellness event associated with joy and celebration. Hospitals in India have been designed and staffed as facilities to diagnose and treat illnesses. They fail miserably to address the unique needs of maternity care: home-like ambiance, compassionate staff members, visits by innumerable family members and friends, and more importantly, impeccable hygienic conditions. On the other hand, nursing homes offer a marginally better environment and personalized attention, but lack immensely in terms of medical care capabilities.

A Birthing Centre is a significant step forward in the development of maternity and women's health services. In our country, this is a new concept and is another stride towards the emergence of specialized hospitals. A major difference between Birthing Centres and Hospitals is that hospitals create policies to care for people who are sick, while Birthing Centres design programs for healthy pregnant women. Birthing Centres offer the personal yet comprehensive care that every expectant mother and her family deserve.

What does setting up The Cradle on a Franchisee basis entail?

Franchising today is one of the most common business models which has been adopted by some of the most well-known brands. In the US, more than 65% of the service industry revenue is achieved through 'franchised' outlets. Even in India, it has had significant success with established companies like NIIT, Aptech, SSI, VLCC, Shahnaz Husain, Lakme etc. A franchisor supports the entrepreneur (the franchisee) with its brand name and also vast industry/business knowledge. As a result, a typical entrepreneur has best of both the worlds, the satisfaction of running his own business and the support of a well-known large organization.

Setting up a birthing center on a franchisee basis requires entering into an arrangement with Apollo Health and Lifestyle Limited as the Franchisor. AHLL will be provide the technical know-how and the franchisee will operate the business.

Who is an ideal franchisee for setting up The Cradle?

Consistently superior quality of services is the cornerstone to ensuring success of the birthing center. AHLL therefore selects each franchisee with utmost care. A proper due diligence is carried out before finalizing a franchisee.

An ideal franchisee will have the following characteristics:

   He will have a prior track record of running a successful business venture.

   He should be able to devote full time or a significant amount of his time to The
    Cradle.

   He will have a social standing, enjoy good reputation and exhibit integrity.

   He will be genuinely interested in the healthcare sector.

   He will strictly abide by the guidelines given by AHLL.

What is the first step towards becoming a Franchisee?

Anyone who is interested in becoming a franchisee can contact the Network Development Cell of Apollo Health and Lifestyle Limited directly by telephone either at the head office or the regional offices, e-mail or fax. (Details provided in the Contact Us section of website) He can also apply directly through this website or download the franchisee form and send it to postal address. On receiving the required information, the prospective franchisee will be required to fill and submit a Franchise Application Form. A team from AHLL will then meet him and discuss the details of the business. It will also assess the franchisee’s ability to run The Cradle. Once we are satisfied with our assessment, the prospective franchisee must sign the Franchise Agreement.

How can a prospective Franchisee obtain detailed information about the project?

If your profile is found suitable, you will be required to attend a meeting with our Senior Management at the AHLL headquarters in Hyderabad, or at any of our Regional offices. During this meeting, you can obtain detailed information about the project, including financial projections. You could also seek clarification on any questions you may have, related to the project Additionally, you could plan to visit an operational facility to get a first hand feel of The Cradle.

What are the formalities involved in selection of a Franchisee for The Cradle?

Depending upon your conviction about the project and AHLL's assessment about your ability to successfully take it forward, a MOU would be signed between AHLL and your group. At this point, you would need to pay the initial License fee. This would be followed by a Due Diligence process to assess your financial capabilities. You would also need to form a Private Limited company to establish and operate The Cradle. Once this process has been completed, AHLL will sign a License agreement with your company to officially nominate you as a Franchisee for The Cradle.

The best brand in healthcare. A workable business model. A good location. Success is guaranteed, right?

Wrong. While the franchisee business format significantly reduces the business risk, success can never be taken for guaranteed. The most important ingredient for success is the franchisee himself. His managerial ability, interest in healthcare and extent of personal involvement in the business determines the success of The Cradle.

How long would it take to start operations from the time of signing the Franchisee Agreement?

The time taken from signing the Agreement to commencing operations depends to a large extent on a few critical factors like, the selection of a suitable site, tying up the finances and completing licensing requirements. Also, the time required for constructing ground up birthing centers is typically longer than that required for establishing facilities in existing buildings. If there are no major issues, it is easily possible to commence operations within a time frame of 10-12 months from the date of agreement

Can I form a partnership venture with other business partners for taking The Cradle franchisee?

You can decide to partner with anyone else for taking The Cradle franchisee. However, AHLL will assess each person individually before signing the agreement. It is also to be noted that the Franchisee Agreement is signed with a limited liability company only. Change in partners/shareholders after the signing of the agreement is restricted by the terms of the agreement.

What is required in order to set up The Cradle?

The Cradle will require a carpet area of 16,000 sq.ft. and should preferably be close to a large residential area. It is envisaged that The Cradle will be on leased/rented premises. However, franchisees may also consider constructing a separate building, or purchasing existing buildings at his discretion, as a separate and independent business investment and lease the premises to The Cradle. The Cradle in India typically requires an investment of Rs. 10-11 crores without real estate. .

How is The Cradle different from nursing homes and similar establishments run my neighborhood?

You can feel the difference between The Cradle and other establishments right from the moment you enter the facility. The ambience is designed to provide an experience which is most comforting to the customers. Our clinical as well as non-clinical procedures have been developed after research by a team of specialists from within the Apollo Hospitals Group. Consultants are selected for The Cradle after being interviewed by a panel of doctors from the Apollo Group.

Some key differentiators include:

   Modeled on birthing centers abroad

   Offers focused personalized care with superior medical technology

   Spread over 20,000 sq. ft. of space (built up area)

   Range of accommodation options from spacious suites with attendant rooms,
    to super deluxe and deluxe rooms

   A well trained and experienced team of doctors

   Labour-Delivery-Recovery (LDR) rooms - one of the first to introduce Hill-rom
    birthing beds

   Fully equipped Operation Theatres designed with laminar flow & HEPA filters
    (for caesareans as well as gynaecological procedures)

   Choice of anaesthesia coverage for delivery

   Integrated setup for added convenience - LDR suites and OTs on the same
     floor

   Top-of-the-line medical equipment - Delivery lights, resuscitators, CTGs,
    medical gases

   4-D foetal monitors for Central fetal monitoring, where the doctor can monitor
    the patient from a single location

   Antenatal rooms and neonatal room located on ground floor near the
     obstetrical ultrasound unit - technologically advanced ultrasound system that
     features exclusive real time 4D imaging

   A 5-bed NICU equipped with state of the art incubators, ventilators and other
    equipment required for specialized infant care

   Blood store arrangement with Blood Banks

   Laboratory facilities- equipped for various obstetrical as well as NICU tests

   Relaxed visitation policy

   Antenatal classes

   For Kids (baby clothes and kiddie toys, apart from baby
    accessories, foods and hygiene products), for mothers (maternity wear)
    and visitors (cards, gifts, books, magazines and confectionary)

   Well stocked 24-hour Pharmacy

   Café for visitors

   Kids’ Play area for older siblings

   Counsellor to talk to mothers and help tackle post-natal depression

What are the medical equipment that The Cradle uses to provide services?

 Given below is an indicative description of the medical equipment in The Cradle:

   Color Doppler

   Mobile X-Ray Unit

   Automatic Film Processor

   Clinical Laboratory with Semi auto analyzer, Electrolyte and Blood gas
     analyzer, Binocular Microscope, Centrifuge, VDRL rotator, Vortex
     mixer, Incubators, Water Bath, Hot Air Oven, Blood store Freezer

   Common equipment like ECG Machine, Fetal Doppler, Fetal Monitor,
     Nebulizer

   OT Theater with O.T Table, O.T light, Multiparameter Monitor,
     Anesthesia equipment, Defibrillator (Bi-Phasic), Pulse oximeter,
     Diathermy, Suction Machine, Infusion Pump, Syringe Pump, Blood
     warmer.

   Procedure Room with Procedure table and Mobile light

   LDR Room with LDR Bed Open Care System, Procedure light(wall
     mounted)

   Neonatology Intensive Care Units with NICU Monitor with oxy CRG,
     Neonatal Incubator, Transport Incubator, Phototherapy unit, Neonatal
     ventilator, Transport ventilator, Bilirubinometer.

   Medical Furniture like Examination Couch, Electrical Beds, Bassinet.

What does Apollo Health and Lifestyle Limited do for the franchisee?

As the franchisor, AHLL will provide all support for setting up and later running The Cradle. Apollo has developed detailed manuals outlining each and every aspect of the operations of The Cradle. Additionally, Apollo also provides rigorous support during operations, including service quality reviews, operations audit, and continuous training programs. Right from pre-launch, launch to post launch, a suitable marketing and communications strategy, including branding would be developed that will guide you to successfully execute and implement local level marketing and promotions.

 Given below is an indicative list of AHLL's support services to be provided to be   franchisee:

   Feasibility Study and preparation of Detailed Project Report

   Site Selection

   Architecture and Interior Design

   The interior design and architecture

   Project co-ordination

   Selection and procurement of medical equipment, including negotiation
     with vendors

   Manpower selection and training

   Information Technology Solution, selection of hardware and software

   Marketing Strategy development, including pricing, advertising, events
     and PR

   Commissioning and pre-launch Activities

   Marketing and new product development

   Operations and Quality Assurance through Service Quality Audits

   Employee Training

   Technology Upgrades and Enhancements

   Deputation of a senior Apollo Resource

What assistance does AHLL provide in marketing for The Cradle?

AHLL helps in marketing for The Cradle at two levels:

   AHLL shall continue to provide ongoing support in the areas of
    marketing. We will continuously be developing a range of products such
    as loyalty programmes, alliances with different corporates for joint
    promotions and also various disease management programmes. We will
    also provide extensive support for our network in various PR initiatives
    to ensure high degree of saliency.

   Facility specific marketing will be done where specific programs are
    launched at The Cradle, including the initial launch campaign. While the
    expenses for these are borne by the facility concerned, AHLL assists in
    developing the creatives and operational details.

How are franchisees assisted in managing healthcare business, about which they may have no knowledge or understanding?

Our franchisees would already be people with excellent managerial skills. We would further equip them with our industry specific programs, extensive manuals on Human Resources, Operations and Information Technology. In addition to this, they will also receive support visits from our functional experts who would constantly guide and update them on the market trends to make this business a success.
We expect franchisees to pick up good business knowledge in the first year of operations itself, with all our support and guidance.

What are the revenue streams in The Cradle? And what is the overall profitability?

The Cradle will derive its income broadly from the following services:

   Birthing

   Pre-Natal & Perinatology

   LDR - Labour, Delivery & Recovery

   Post-Partum Care

   Neonatal Care (including Neonatal Intensive Care)

   Ambulatory Procedures

   D&C, MTP and Sterilization

   Ancillary Services

   Antenatal classes

   For kids (baby clothes and kiddie toys, apart from baby accessories,
    foods and hygiene products)

   For mothers (maternity wear)

   For visitors (cards, gifts, books, magazines and confectionary)

   Well stocked 24-hour Pharmacy

   Café for visitors

What does Apollo Health and Lifestyle Limited charge as fees?

AHLL charges an “Initial License Fee” * of Rs. 1 crore at the time of signing the Agreement. This license is valid for a period of ten years. As royalty fee, AHLL will charge 5% of the gross turnover of The Cradle as 'Operating License Fee'*, which will be payable on a monthly basis. In addition, the franchisee is required to pay applicable taxes. Abroad, the License Fee is based on the facilities provided, and the amount of additional work required. Typically, the Initial License Fee abroad is around 10% of the estimated cost of the project (excluding land value). For international facilities AHLL will charge an 'Operating License Fee' based on factors such as cost of operations, monitoring and support requirements, etc. * Initial License Fee and Operating License Fee may be revised at AHLL's discretion

Will AHLL or AHEL make investment (even a token amount) in The Cradle?

Since The Cradle is set up on a franchise basis, the franchisee will be responsible for the entire investment. Where requested, AHLL may assist the franchisee in arranging term loan from a bank. However, neither AHEL nor AHLL will make any investment in the birthing center. It will also not give any guarantee to the lender.

What will be the relationship between existing Apollo hospitals and The Cradle?

While every The Cradle will be an independent entity, both the entities will benefit from the common brand building and similar exercises. The goodwill of all the facilities shall automatically come to you through the Apollo brand name. Specific association with any or all of these entities, shall be based on local market conditions and business needs.

If The Cradle is set up in a city where a full-fledged Apollo hospital already exists, will it not mean unnecessary competition within the same organization?

The Cradle shall focus on the birthing process and is targeted to the upper income groups only. It thus operates in a niche market which is of a very different nature from the customers of a general hospital or clinic. We do not perceive any competition from such existing Apollo secondary and tertiary care facilities.

What will be the name of The Cradle? Can the name The Cradle be altered or modified?

Every birthing center will be called "The Cradle". No deviations are allowed. The name and signage has been standardized and no deviation, beyond AHLL's stated guidelines, will be permissible.

What is the growth plan for The Cradle? Can I ever own an Apollo franchised hospital?

Currently our focus is on retail healthcare as it is an area with tremendous unexplored and unutilized potential. The growth of facilities is envisaged in terms of geographical expansion. However, we cannot rule out the possibility of setting up hospitals at a later stage with the Apollo Group.

How are the physicians, gynecologists and obstetricians going to be associated with The Cradle?

The Cradle will have a Consultant Gynecologist and a Neonatologist on full time rolls. Apart from them, The Cradle will have a group of visiting consultants from various disciplines. The Cradle will also have a Radiologist and a Pathologist on its rolls. The hours of employment may however be decided based on the local conditions.

How would doctors and technical staff be recruited? What will be AHLL’s role in this?

The method of employment of doctors would vary from city to city. AHLL will assess the financial implications on the business and recommend full time employment, revenue sharing based association or any other method that is considered appropriate. Good technical staff is adequately available in the market. AHLL shall help in recruiting such all key staff by designing advertisements, conducting interviews, and short listing.

What would be the profile of a typical Center Manager for The Cradle?

The Centre Manager is responsible for the overall management of the clinic. The two key facets of his responsibility are to achieve sales targets and ensure consistently superior quality of care in all clinic services and operations. The candidate must have excellent managerial skills, marketing acumen and a flair for customer relationship management. He would have about 7-8 years of work experience in a healthcare environment, preferably an indoor facility of a hospital, including at least 2 years as the head of business unit or function. Doctors in administration may also fit the profile.

How many people do I need to employ to run The Cradle operations ?

Typically staffing requirements in India vary between 60-65 in the first year. Actual staffing could vary depending on a number of variables including the number of floors occupied by The Cradle.

Can I invest in multiple Cradles in different locations at a single time? What are the economies of scale involved for the franchisee in such a case?

We would like to allocate a Franchise only for one facility in the beginning. Based on the business performance and customer feedback, we would consider allocating licenses for more facilities. Since our 'Initial License Fee' is already based on Economies of Scale, no further reduction of fees can be considered, even if a transaction for 10 birthing centers is involved.

Are the locations for opening The Cradle restricted? Can The Cradle be set up anywhere in India or abroad?

AHLL has prioritized certain cities based on Market Surveys conducted for the establishment of new cradles. Some of these cities are being considered for implementation in the first phase itself. Other cities shall be covered in the second and third phase. For overseas location, The Cradle is set up based on a detailed study of the market in those countries and the need-supply gap. For information regarding specific locations, please contact our corporate office.

Is there a plan to set up The Cradle in smaller cities?

The Cradle as a business model is a viable proposition for all cities having a population of more than 700,000. In larger cities there can be multiple facilities in different areas. For example, Mumbai is estimated to be able to support over 3 The Cradle facilities. Cities smaller than these may be considered on a case to case basis subject to a detailed market survey and special circumstances.

Whom should I get in touch with at AHLL?

In addition to its Corporate Office at Hyderabad, AHLL currently has offices at Mumbai, Delhi, Chennai and Kolkata. While the final decision in appointment of a franchisee will be made by the Network Development Cell at the Corporate Office, preliminary information required can be procured from our regional offices.