Saturday, November 3, 2012

The World's Top 10 Most Innovative Companies in India

The World's Top 10 Most Innovative Companies in India

  1. Narayana Hrudayalaya Hospitals

    For bringing high-quality medical care to Indians' doorsteps. In addition to its network of hospitals offering everything from heart surgery to dialysis, the low-cost, high-volume provider started a new program last December called Home Health Care Services. Professionals administer care and treat minor illnesses in people's homes, curbing long and costly trips to distant and crowded hospitals.

    Photograph by Sanjit Das

    Narayana Hrudayalaya is Walmart meets Mother Teresa.
    The organization, a complex of health centers based in southern India (narayana hrudayalaya means "God’s compassionate home" in Sanskrit), offers low-cost, high-quality specialty care in a largely impoverished country of 1.2 billion people. By thinking differently about everything from the unusually high number of patients it treats to the millions for whom it provides insurance--and by thinking a lot like the world’s largest retailer--the hospital group is able to continually wring out costs. Narayana Hrudayalaya’s operations, for instance, include the world’s largest and most prolific cardiac hospital, where the average open-heart surgery runs less than $2,000, a third or less what it costs elsewhere in India and a fraction of what it costs in the U.S.
    Narayana Hrudayalaya’s origins date back to 2001, when it built its massive cardiac center on the outskirts of Bangalore. But it has expanded since then into what founder Dr. Devi Shetty calls a "health city," a series of larger-than-usual centers specializing in eye, trauma, and cancer care on 35 sprawling acres. What’s more, Narayana Hrudayalaya now manages or owns hospitals in 14 other Indian cities. Its telemedicine practice, in which each surgeon has Skype on his laptop, extends its reach even further, to 100 facilities throughout the country and more than 50 in Africa. The newest initiative, dispersing 5,000 dialysis machines, will make the company the country’s largest kidney-care provider.
    Expanding access is paired with a relentless focus on efficiency. Typically, says Shetty, private hospitals in India focus on patients who can easily afford treatment. "We did it the other way around," he says. "This hospital is for poor people, but we also treat some rich people. So we’re mentally geared for people who are shabbily dressed and have trouble paying. We don’t look at them as outsiders. We look at them as customers." Narayana Hrudayalaya’s flagship hospital has 3,000 beds, more than 20 times as many as the average American hospital. The company (mostly family owned, with JPMorgan among a handful of investors) negotiates for better prices and buys directly from manufacturers, cutting out distributors. Starting with cardiac care, an equipment-intensive specialty, made it easier for the hospital group to expand into other areas that require the same infrastructure. "Cardiac surgery is like a moving train," Shetty says. "We’re just adding other cars."
    The company targets even routine inefficiencies. A beefed-up support staff handles the onerous paperwork for surgeons, freeing Shetty and his colleagues to perform more operations than a typical cardiac surgeon would, about a dozen a week. And because they work on a fixed salary instead of per operation, the cost to the hospital drops when the number of procedures increases. "More than 100 years after the first heart surgery, less than 10% of the world’s population can afford it," says Shetty. "That’s why we concentrate on the mechanics of delivery. It’s the Walmart approach."
    In addition to cost-cutting, Narayana Hrudayalaya finds creative ways to make the economics work. The company started a micro-insurance program backed by the government that enables 3 million farmers to have coverage for as little as 22 cents a month in premiums. Patients who pay discounted rates are in effect compensated by those who pay full price or opt for extra perks. Typically, the latter group includes foreigners for whom a $7,000 heart operation, access to an experienced specialist, and a deluxe private room is a relative bargain. The balance of patients is, in fact, crucial. Every day, Narayana Hrudayalaya’s surgeons receive a P&L statement of the previous day that describes their operations and the various levels of reimbursement. The data allow them to add more full payers, if necessary (unless urgent health issues dictate otherwise). "When you look at financials at the end of the month, you’re doing a postmortem," says Dr. Ashutosh Raghuvanshi, Narayana Hrudayalaya’s CEO. "When you look at it daily, you can do something."
    And doing something--doing more, actually--is the point. By 2017, Shetty, 58, envisions expanding from 5,000 hospital beds throughout India to 30,000. He could barely have imagined such an empire 15 years ago. Before becoming one of India’s best-known health-care entrepreneurs, Shetty was its best-known heart surgeon. He was interrupted in surgery one day during the 1990s by a request to make a house call. "I said, 'I don’t make home visits,' " Shetty says, "and the caller said, 'If you see this patient, the experience may transform your life.' " Which is exactly what happened. The request was from Mother Teresa. Inspired by the iconic nun’s work with the poor, he then set out to create a hospital to deliver care based on need, not wealth. No doubt she would be pleased by the results. "One lesson she taught me," he says, quoting a saying he keeps framed in his office, "is 'Hands that sew are holier than lips that pray.' "
    For computerizing India's analog bus system. RedBus pulled more than 350 of India's estimated 2,000 risk- and tech-adverse bus operators into the digital age with a computerized reservation and bus tracking system. Travelers can book tickets and choose their seats over the phone, online, via SMS, or in person at 75,000 outlets, cutting out the fickle travel agent middleman. The ultimate goal: to fully computerize the nation's unorganized private bus operator market.

    Several years ago, on a busy holiday weekend, Phanindra Sama actually ran after some Indian bus operators in a failed attempt to catch a bus home. Now, says Sama, "I’m computerizing the bus industry." His company, RedBus, spent years unifying the system--bus operators, tickets, travel agents--and this year unveiled an integrated platform that serves more than 10,000 bus routes. Customers can view open seats from multiple operators, purchase tickets, and post ratings. Meanwhile, bus operators can track seat availability in real time, and travel agents can prebook passengers. RedBus tripled sales last year, adding 4.25 million riders.
    For adapting the Amazon formula to local needs. Cash is king in India, accounting for more than 90% of the nation's retail transactions. This online retailer was the first of its kind to provide a credit-card averse population with the option of speedy, cash-on-delivery shipment of books, electronics, and other goods. With 2011 bringing more than $50 million in funding, the company plans on expanding its delivery network to 25 new cities, causing its Western counterpart to take notice: Amazon launched an Indian warehouse to meet the nation's unique concerns in February.
  3. Eko

    For leveraging communities to ensure financial inclusion. Bank accounts and savings are a foreign concept to most Indians: Out of 1.2 billion people, less than 360 million use a bank. Eko created a mobile platform that lets its more than 180,000 users save and transfer money with the State Bank of India through SMS. Five hundred mom and pop shops--or kiranas--act as local banks, collecting customer info and recording 7,000 transactions a day through their own mobiles.
  4. Tata Motors

    For still thinking small. Although India's largest automobile company increased the price of most of its vehicles last year, it kept its best seller, the Tata Nano, affordable at $2,500. But it didn't stop there. "The people's car" got a few upgrades in the form of luxe interiors, Holi-bright exteriors, and improved fuel efficiency--making the Nano one of the lowest CO2 emitting vehicles in the country. Tata Motors expanded sales of the Nano to all of India in 2011.
  5. Wipro

    For creating Supernova, India's fastest supercomputer. Indian Space Research Organization and The Energy and Resources Institute are already using Supernova to process huge volumes of data to create virtual models on space launches and climate change. The result of three years' work, Wipro hopes to eventually reach 500 teraflops of processing power (one teraflop can zip through one trillion mathematical instructions a second).
  6. Adani Group

    For harnessing India's growing solar power. Solar energy in India is poised to edge out coal as a cheap and viable power source by 2015, according to industry leaders. News of Adani's plans to build India's largest solar power plant in Gujarta hints at the nation's growing interest in renewable energy. Gujarta's government is already offering subsidies to homes and offices that install solar panels.
  7. Tree House Education

    For filling a gap in preschool education. Mass vacancies in preschool (or KG) education throughout India are keeping some kids out of the classroom. But The Tree House has stepped in, offering a combination of Montessori and "play work" to children as young as a year old. With more than 200 preschools, Tree House Education runs the largest network of self-operated preschools in the country.
  8. Naandi Community Water Services

    For showing the market can do good. Naandi builds village water purification plants that pump clean, filtered water into rural and urban communities. Government and individual donations fund the facilities; villagers pay a small fee (around 5 cents per liter, much cheaper than bottled water) for access. The organization, backed by Indian business bigwigs, including the chairman of Dr. Reddy's Laboratories, currently runs 460 plants, with a goal of reaching 725 by 2012.
  9. ITC

    For providing farmers with the information they need to succeed. ITC's Agri Business division developed e-Choupal, a web-based program that provides India's farmers (who make up a majority of the population living under the poverty line) with the know-how to compete in the market. More than 4 million farmers log on to the site to read up on market prices, weather warnings, tips, and farming techniques.

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