Overview
At PVP Ventures Ltd. ("PVP"), we recognised the need to develop a road map
with clear objectives for management to achieve healthier results. Given this, your
company embarked on a restructuring exercise in September 2023 with the objective of a
clear transformational future.
Our patience and resilient holding of our prime realty asset started yielding results.
Two significant Joint Development Agreements ("JDA's") were signed earlier with
leading South Indian players to develop prime land bank in North Chennai, Perambur, an
area experiencing promising growth. We are optimistic that a significant portion of the
revenue will commence in FY 2024-25. We have clear visibility of robust and assured
revenues above Rs. 1800 Crores through the entire project lifecycle, which is expected to
be completed by 2030.
In the competitive and dynamic healthcare services industry, Humain Healthtech Pvt.
Ltd., has established its presence. I am pleased to report that the strategies we
implemented have gained traction. We remain focused on acquiring organizations with stable
revenue streams, while divesting from unprofitable ventures. During the year under review,
we continued to target investing in businesses that align with our longterm strategy:
enterprises that have the flavour of annuity with predictable revenue and profitability.
Value creation
We are committed to creating significant value for our shareholders, and this year has
marked a pivotal moment in that effort. PVP is at the cusp of a major transformation in
its journey and prospects.
PVP has decided to enter the Healthcare Services space aggressively, utilising the
proceeds from its real estate operations. In FY 2023-24, we undertook and completed a
significant restructuring of our corporate structure. This initiative aimed to simplify
crossholdings, divest non-core assets, eliminate litigated assets from our Balance Sheet,
thereby strengthening our governance, and to enter into Healthcare services sector, where
we anticipate a long-term future.
India is recognised as a rapidly growing economy with a significant demographic
advantage, driven by its young population. This compelling demographic dividend is
expected to thrive for another couple of our governance by revamping our Board of
Directors and inducting Directors from diverse backgrounds. We also hired a multinational
firm as our internal audit service provider to strengthen our management processes.
Moreover, we are committed to segregating corporate ownership and management. During the
year, we appointed a new CEO with relevant experience in Healthcare, a CFO with experience
in capital mobilisation and managing decades which, your company sees an opportunity to
serve the oldest population on the planet.
Healthcare services will be essential, and it is crucial to build a platform with the
right capabilities, resources, and leadership to capitalise on an opportunity that will
thrive for the next century. The Indian Healthcare sector, characterised by low
penetration and a multitude of regional players, offers an attractive opportunity for
consolidation.
Building a lasting institution
The comprehensive restructuring undertaken in FY 2023-24 was the first step towards
building a lasting institution of relevance and scale. We significantly enhanced
multi-locational businesses, and a Head of Investor Relations, Mergers and Acquisitions to
execute our strategy. We believe that by adopting the best-in-class governance practices,
we will be able to build an institution that is both respected and enduring, extending
beyond the promoters vision.
The Healthcare services sector presents a host of opportunities
The recent pandemic highlighted a crucial understanding that no country can regard its
healthcare system as complete or independent. My enthusiasm can be best expressed in Mr.
Franklin D. Roosevelt's statement, "The success and failure of any government in the
final analysis must be measured by the well-being of its citizens. Nothing can be more
important to a state than its public health; the state's paramount concern should be the
health of its people."
Every nation in the world is candid enough to admit that the scale and effectiveness of
their public health infrastructure are under scrutiny. Weaknesses in the nation's public
health infrastructure have come to the fore. Communication among tenants of public health
infrastructure is often cumbersome, uncoordinated and inaccurate. Additionally,
laboratories are overwhelmed with the testing of samples. A strong and effective public
and private health infrastructure is essential not only to respond to crises like this but
also to prevent or manage chronic illnesses, ensuring the wellbeing of our future
generations.
This insight is fostering a new perspective on the cross-border flow of health care
services, redirecting talent from countries with surpluses to those facing shortages.
Additionally, this will likely enhance the exchange of knowledge and resources across
borders, with the singular objective of making the world a seamless marketplace serving
one another.
Meanwhile, rising costs and projected worker shortages of 10 million by 2030 underscore
the urgent need for solutions. This reality is opening up unprecedented opportunities in
the global healthcare sector.
India's growing role
India's healthcare sector is poised to play an increasingly significant role,
benefitting from several key advantages:
India rides its longstanding success and repeat in software services, validating the
conviction that India provides mission-critical services across various areas. PVP will
progressively leverage the Indian healthcare ecosystem to provide services in markets that
provide large, enduring, and profitable opportunities. By pursuing and serving global
marketplaces, we believe we will be playing a pioneering role, translating into business
sustainability. The combination of rising chronic disease incidence, geriatric population
growth and higher penetration of government insurance schemes drives the demand for a host
of speciality healthcare services. For example, by 2040, 16% of the Indian population or
240 million people will be seniors, providing a market for geriatric healthcare services.
Looking ahead
Currently, only about 2 per cent of India's GDP is spent on healthcare.
We expect this to double in the coming years as India works to match global healthcare
spending levels. The disparity between healthcare facilities in metro and non-metro areas,
as well as urban and rural regions, is expected to decrease as healthcare becomes more
inclusive. This augurs well for PVP as we extend into healthcare services focusing on
cash-generating, asset-light businesses.
Building a Unique "House of Brands"
We aim to become a premier provider of healthcare services across a spectrum of
offerings, driven entirely through inorganic growth. Our focus areas include but are not
limited to:
• Specialty Healthcare services (Oncology, In-vitro fertilization, dialysis, etc)
• Senior Care & Living
• Teleradiology
• Diagnostics including genomics
We will leverage Indian competencies to tap into global Teleradiology and senior care
opportunity. In FY 202324, PVP made its first foray by investing in three healthcare
services: Humain Healthtech in Chennai, Orange Diagnostics in Andhra Pradesh, and Noble
Diagnostics in Chennai. Our acquisitions will continue to operate in their brand name as
we seek to realise back-end synergies. We see the demand-supply gap in the provision of
healthcare services continuing for years to come. PVP follows a three-pronged criteria to
evaluate potential acquisition opportunities: profitable businesses, regional leadership,
and motivated entrepreneurs. The acquired asset will be used as the platform to drive
further growth in that segment.
Our Real Estate Assets
PVP entered into JDA's with reputed builders to develop approximately 70 acres of
proprietary land in Perambur, a prime area in the heart of Chennai. These developments are
expected to yield a revenue share of Rs. 1800 to Rs. 2000 Crores in the next six years.
Our real estate partners include most respected industry leaders such as Brigade
Enterprises, Casa Grande, and Rainbow Foundations.
Rainbow Foundation: The Company is developing 34 acres with Rainbow Foundations.
The project is in an advanced stage and 2,000 families are already residents. The company
expects residual sales to generate approximately Rs. 100 Crores for PVP in FY 2024-25 and
FY 2025-26.
Casa Grande: PVP has entered into a JDA with Casa Grande, a reputed high-volume
premium builder in
Chennai for its land holding of 12 acres. The project has been launched and is expected
to generate approximately Rs. 600 Crores in revenues between FY 2024-25 and FY 2027-28.
Brigade Enterprises: PVP entered into a JDA with Brigade Enterprises, one of the
leading and well- respected institutions in India for 16 acres. This project is expected
to be launched in FY 2025-26 and generate approximately Rs. 1200 Crores in revenues
between FY 2025-26 and FY 2029-30.
Living our commitment
A strategic clarity of our company and a correspondingly transparent approach are
likely to attract like- minded stakeholders across the long term, strengthening our
capacity to enhance value for all our stakeholders sustainably. We will focus on
geographical expansion through acquisitions, portfolio diversification, and digital
transformation moving forward. I would like to acknowledge the dedication of our people
and their continued commitment to excellence. I remain thankful to our Board and
shareholders for their trust and faith. Their support provides the direction and
confidence to scale horizons and uncover new avenues of success.
I am convinced that PVP is at the cusp of a new growth journey, marked by clarity,
consistency and credible execution in its long-term focus areas, resulting in enhanced
value for all those associated with our company.
Warm regards,
Prasad V. Potluri
Chairman & Managing Director