Multidimensional growth story

I am confident that Shalby Group will continue to enjoy global leadership in joint replacement surgeries, while scaling up the implant business across geographies, and expanding through the asset light franchise business model in orthopedics.

Founded by the visionary orthopedic surgeon Dr Vikram Shah in 1994, Shalby has transformed into a multispecialty hospital group from a single specialty in the last ten years, focusing on clinical excellence, patient care, and quality-driven services. We are the largest healthcare service delivery group in western and central India with presence in Ahmedabad, Jaipur, Mumbai, Indore, Surat, Jabalpur, Mohali, and Vapi. Besides orthopedics, Shalby has become a name to reckon with in the specialties of cardiology, oncology, neurology, nephrology, urology, critical care, etc. We are the largest hospital group in western and central India with more than 3500 full-time employees and more than 1000 doctors and consultants associated with us.

As we move into the New Year, our focus remains on ramping up occupancy levels across all our 11 units with better revenue and payer mix, while maintaining the best clinical outcome in the healthcare industry. Covid-19 witnessed a need for virtual consultation and at-home services, which propelled the growth of our homecare services. The government is making focused efforts to make India a preferred medical tourism destination for affordable medical services with high clinical excellence. I strongly believe that the medical tourism industry is set to double in the next 5–6 years with a CAGR of 15–20 percent. We at Shalby are well positioned to take maximum advantage of this through our established OPD centers and partnerships in Africa and the Middle East.

We plan to expand our footprint in other geographical locations like northern and eastern regions, preferably in cities like Delhi and Kolkata with 200–250 bed-capacity hospitals.

Along with this, through the franchise model, we will be leveraging our expertise and brand equity in orthopedics in the 30 shortlisted cities in India. We have branded these centers as Shalby Orthopedics Centers of Excellence (SOCE) with 30–40 bed capacity, catering to complete orthopedics solutions. We have successfully launched two new franchise centers in Udaipur and Lucknow locations, and have MOUs signed in Gwalior, Kanpur, and Rajkot.

Financial Year 2022 has proved to be an exciting year, wherein we embarked on a new journey by entering manufacturing of knee and hip joints by acquiring assets from Consensus Orthopedics located in California, USA, and incorporated Shalby Advanced Technologies, Inc. (SAT). The company has had ZERO PRODUCT RECALLS in more than 25 years of its operations – this is a testament to the product quality. Along with the existing markets in USA, Japan, and India, in the coming year we plan to focus on the South-East Asian markets and other countries in South Asia. Our immediate focus area at SAT is scaling up the US business and production to satisfy the demand through the strong team that we have built.

We are well positioned to reap the benefit from the growth of implant business in India and the rest of the world. Our Vice Chairman Sushobhan Dasgupta has set a target of achieving USD 100 million sales for the implant business in 5 years.

We believe that these new strategic initiatives will add substantial value to overall growth of the company in the coming years. With this, Shalby is the only integrated end-to-end orthopedic player in the world with hospitals and a knee and hip implants manufacturing facility. The synergies between our hospital and implant businesses are compelling and will earn good yields.

Lastly, we remain focused on a strong employee-centric culture and prudent capital allocation. With the clear strategy and roadmap ahead for three business verticals – hospitals, franchise, and implant business, Shalby is well poised to see significant growth in the coming years.