AS WE CELEBRATE 25 YEARS OF DEDICATED SERVICE AT RAINBOW
CHILDREN'S HOSPITAL, OUR COMMITMENT TO CLINICAL EXCELLENCE AND PATIENT-CENTRIC CARE
REMAINS STRONGER THAN EVER. OUR JOURNEY, MARKED BY NUMEROUS MILESTONES, REFLECTS OUR
UNWAVERING DEDICATION TO SETTING NEW STANDARDS IN PAEDIATRIC HEALTHCARE.
Dear Shareholders,
It is with immense pleasure and gratitude that I acknowledge the
25-year milestone of
Rainbow Children's
Hospital. It has been an extremely satisfying journey that began with a
mission to bring specialised paediatric healthcare of international standards to India.
Our journey started in 1999 when we opened our first hospital with
50 beds in Hyderabad, driven by an unwavering commitment to our
mission. The effort was marked by a consistent focus on clinical excellence, backward
integration into perinatal services to provide comprehensive healthcare for the mother and
the child, and compassionate care in a patient-centric environment, which established us
as a unique and leading paediatric multi-specialty hospital chain in the Indian healthcare
sector. Today, we have 1,935 beds across 19 hospitals and 4 outpatient clinics spread
across 6 Indian cities.
I am excited as we embark on the next phase of our journey.
The proven resilience and success of our operating model strengthens
our resolve to expand our network across the country.
Clinical Updates
I am delighted to share that two of our hospitals received the
prestigious ‘Gold Seal of Quality' from the
Joint Commission International (JCI), affirming our commitment to high
standards of patient care. Rainbow Children's Hospital, Banjara Hills, Hyderabad,
became the first paediatric hospital in India to receive JCI Accreditation. In April 2024,
our flagship hospital at Marathahalli, Bengaluru, was also awarded JCI accreditation. I am
also pleased to share that OMR, Sholinganallur
Hospital in Chennai obtained
NABH accreditation within its first year of operation.
We have significantly raised the bar in paediatric critical care by
offering air ambulance services, extensive ECMO services, and transplant ICU services.
During the year, we retrieved five air transports to our hub hospital in
Hyderabad. One such case involved a critically sick child on
High-Frequency Oscillatory Ventilation (HFOV) and nitric oxide therapy, air transported
from Goa. This was perhaps the first complex paediatric air transport in India.
Financial Review
FY 2024 was a year of resilient financial performance against a
backdrop of seasonal headwinds.
Our operating revenue reached
Rs 12,969 million, marking a 10.5% increase from the previous year.
Our sharp focus on cost management without compromising on clinical
outcomes and patient satisfaction, along with improving operational efficiency, helped the
Company to maintain healthy financials.
Building Capacity for the Future
During the year, we commissioned 280 beds across three new spoke
hospitals, one each in Hyderabad, Bengaluru and Chennai, and also added a new block to
cater to demand at the existing hospital at Hydernagar in Hyderabad City. Apart from these
hospitals, we opened an outpatient clinic at
Hennur, Bengaluru. This is the first time that we have had such a large
capacity commissioned in a short span of time. Our team has meticulously executed on the
ground to ensure the timely commissioning of our projects.
Another major highlight was the introduction of IVF services at eight
additional hospitals, increasing the total to 11 hospitals that now offer IVF services.
This expansion has significantly enhanced our Birthright Services, enabling us to offer a
comprehensive suite of women's care offerings under one roof.
Our upcoming hospitals in the southern region, comprising a spoke at
Hennur, Bengaluru (~60 beds), regional spoke at Rajahmundry, Andhra Pradesh (~100 beds),
and regional spoke at Coimbatore, Tamil Nadu (~100 beds), are in various stages of
execution and progressing as planned. We expect to commence operations at Rajahmundry and
Hennur Hospitals by the last quarter of FY 2025 and at Coimbatore
Hospital in FY 2026. Furthermore, we are in the design phase for two
new hospitals in Gurugram, NCR, with a combined capacity of ~400 beds.
Medical Tourism
India, known for its advanced yet affordable healthcare services,
remains a preferred medical destination for many developing countries. We are actively
exploring opportunities in medical tourism, supported by a dedicated sales team and direct
health cooperation agreements with governments. This year, we formed strategic alliances
with the Government of the United Republic of Tanzania and the
Ministry of Health, Zanzibar, to offer comprehensive specialty children
healthcare services and also clinical exchange programmes in paediatric healthcare.
Looking ahead, led by our focused efforts and presence in cities well-connected to
international destinations such as East Africa, Indian neighbourhood and CIS countries, we
anticipate a significant influx of overseas patients seeking super specialty paediatric
care at our hospitals.
Digital Transformation
We are committed to providing patient-centric care and leading
healthcare innovation by embracing digital and technological solutions.
We have transitioned to an advanced
Hospital Information System (HIS) to enhance our backend
infrastructure. This new HIS operates on a robust cloud platform, providing scalability
and enhanced security. Additionally, we have strengthened our digital healthcare
initiatives, including video consultation services, patient portals, and the integration
of electronic medical records (EMR) systems to enhance patient experiences.
We have also implemented Salesforce CRM system and deployed cloud
technologies to improve sales efficiency and outcomes.
People Capabilities
Our medical professionals play a critical role in achieving our
strategic and operational objectives. We take pride in having one of the best healthcare
teams and have continued to enhance their expertise to ensure the highest standards of
medical care. Additionally, we have onboarded proficient consultants to support the
success of our existing and new units and strengthen our ability to deliver superior
patient outcomes.
Our high patient satisfaction is also a testament to the dedication and
commitment of our staff.
We place significant emphasis on their talent development through
structured training and continuous learning opportunities. This year, our recruitment
initiatives have successfully attracted talent from diverse industry backgrounds to
enhance our expertise and service delivery. We have added leadership teams in Corporate
Sales, Projects, Nursing, Learning and Development.
This foundation will help us strengthen our performance across various
facets of our operations. In addition, through various initiatives, we have made
significant progress in advancing diversity, equity, and inclusion across the
organisation.
To steer our strategic direction in the coming years, I am pleased to
announce enhancement to the Company's Board. The Board appointed Dr. Adarsh
Kancharla, one of our promoters, as a Non-Executive Director. I warmly welcome the new
Board member and am confident that his inclusion on the Board will help the Company build
a dynamic and youthful organisational culture, significantly contributing to the next
phase of our growth journey.
ESG Focus for Sustainable Growth
At Rainbow, we are committed to maintaining high performance across
environmental, social, and governance aspects. As part of our efforts to drive energy
efficiency, we have established solar rooftops, installed solar water heaters, and adopted
Internet of Things (IoT) technology, among other measures. This year, we began sourcing
renewable energy from open access systems for multiple units, further minimising our
environmental footprint. Our corporate social responsibility initiatives aim to positively
impact societal health and well-being.
We remain steadfast in practising the highest levels of governance,
professionalism, and transparency to create long-term stakeholder value. In line with
regulations and industry standards, we have a robust risk management framework.
Growth Outlook
As we continue to successfully execute our strategic objectives, I am
confident in our ability to accelerate growth momentum and capture forthcoming
opportunities.
Our multi-faceted approach includes expanding capacity at strategic
locations, strengthening IVF services, and prioritising international business expansion,
among other initiatives.
Since our public listing, we have commissioned 435 beds, representing
22% of our existing bed capacity, within stipulated timelines.
We remain dedicated to fulfilling our commitment to commission the
remaining beds within the guided timelines. Furthermore, as new hospitals mature, they are
expected to replicate the performance of our matured hospitals. While pursuing network
expansion, our focus remains on adopting a targeted go-to-market approach and exploring
new markets through a clinical model to assess feasibility and potential.
Given our robust balance sheet and strong cash flows, along with
anticipated internal accruals in the coming years, we are confident in our ability to fund
all planned capital expenditures internally without requiring debt financing. Being
system-driven and predominantly operating asset-light hospitals enhances our potential to
drive sustained stakeholder growth. Additionally, we remain open to actively exploring
mergers and acquisitions (M&A) opportunities.
Acknowledgements
I extend my heartfelt gratitude to our valued stakeholders, esteemed
Board Members, proficient doctors, dedicated employees, visionary management team, and
everyone else who has contributed to making Rainbow what it is today. Even as I reflect on
Rainbow's successful journey with pride, I firmly believe that the future holds even
greater promise. With renewed commitment to our mission of delivering excellent
multi-disciplinary paediatric and perinatal care services, with the ultimate goal of
contributing towards a healthier nation, we are poised to usher a stronger and a
sustainable future.
Thank You. Warm regards,
Dr. Ramesh Kancharla
Chairman and Managing Director