About 40 years ago, Prathap C. Reddy embarked on a mission to transform the fundamental need for healthcare into a successful business. He didn’t do it alone; he had the unwavering support of his four determined and capable daughters. Together, they have built an enviable legacy, overcoming numerous challenges—from raising capital to managing the organization and maintaining momentum amidst stiff competition. Suneeta Reddy, Shobana Kamineni, Sangita Reddy, all featured in the BT Most Powerful Women in Business 2022 listing, and the eldest daughter Preetha Reddy, who is in the MPW Hall of Fame, have been the pillars supporting their father’s vision and growing the Apollo Group to what it is today.
“When we started, the notion of a corporate hospital that would be run professionally and would need capital outlays was unheard of. It was a challenge convincing different sets of stakeholders about the operating model and securing funding,” says Suneeta Reddy, 64, the second daughter who started working with Apollo Hospitals in 1989. As the Managing Director of Apollo Hospitals, Suneeta oversees finance and strategy. She played a crucial role in bringing the first foreign direct investment into Indian healthcare in 1995 and later took the organization to international equity markets through a successful Global Depository Receipt (GDR) issue in 2005. “It took a lot of effort and road shows in multiple countries to explain my father’s vision,” Suneeta recalls.
For the Apollo sisters, it’s not enough to merely have an idea and get it started. The key is to create something self-generating in terms of cash flows, so it can sustain its own growth and fuel more job creation. “In every business vertical, it has been important that we build them up to be self-sufficient units, and overall, build an enterprise that is sustainable for the long term,” says Suneeta. The Covid-19 pandemic taught them the importance of using tough times to prepare for what’s ahead. “In that sense, we are a resilient, yet agile and learning organization. We can never be linear in our thinking and are never satisfied with our progress.”
Over the past 18 months, the sisters have fostered greater cohesion between their verticals and focused on putting the consumer at the center. They have also improved planning and communication, leading to better teamwork. “An area of deep focus for me was to prioritize engines of growth that would propel our enterprise over the next five years and provide a platform and funding for those growth areas. We can already see the results of that focus and investment beginning to pay off,” says Suneeta.
Apollo, which began as a single hospital in Chennai in 1989, now spans a wide range of healthcare services, including 71 hospitals, over 5,400 pharmacy stores, and 250 primary healthcare centers across India. Apollo Health & Lifestyle Limited (AHLL) operates multi-specialty clinics and diagnostics, among other things. Managed deftly by the sisters, Apollo’s performance reflects its growth across multiple fronts. In Q3 FY23, consolidated revenues of the healthcare services division increased by 9% year-on-year; revenues of existing hospitals grew by 9% and new hospitals by 8%; healthcare services saw 10% YoY growth; AHLL grew by 9% YoY; and digital health and pharmacy distribution revenues grew by 34% YoY. In FY22, Apollo Hospitals Enterprise’s consolidated revenue was Rs 14,662.6 crore, a 39% increase over FY21. Net profit grew by 602% to Rs 1,055 crore in FY22 from the previous year.
Looking ahead, the sisters see strong growth areas. “Primary care, diagnostics, secondary and tertiary care, all linked and enabled through an integrated digital platform, will provide the basis of our next phase of growth,” says Suneeta. This integrated digital platform, Apollo 24/7, is being led by Shobana Kamineni, 62, who also oversees Apollo Pharmacy, the pan-India pharmacy chain. Like many working women, Shobana, the Executive Vice Chairperson of Apollo, had to balance her professional and personal life. Prathap Reddy’s third daughter recalls that at times, even attending a meeting was a challenge while trying to be a good wife and parent to three kids. “Fortunately, we all build coping mechanisms… sisters, supportive parents, in-laws, spouses, and even girlfriends… I had all of them to help me make it through the years. I’m very grateful for this,” she says.
Shobana finds it exciting and fun working with people who are her children’s age. During the Covid-19 pandemic, when the healthcare sector was severely affected, Apollo opened its 5,000th pharmacy. Apollo 24/7, which she manages, continues to grow and deliver results. “Helming a digital business in e-commerce, I have seen a cycle of crazy top-line euphoria and valuations pivot to profitable and sustainable growth within three years. Thankfully, my old school training refused to allow us to build a business that wasn’t fundamentally sound. So, apart from building a good business, we are making healthcare more ubiquitous and affordable. It’s an exciting time for Apollo,” says Shobana.
The youngest sister, Sangita Reddy, 60, Joint MD of Apollo Hospitals, heads Apollo Philanthropy. One of her initiatives, “Apollo Reach,” aims to build a network of secondary care hospitals in rural areas across India. Under her leadership, Apollo Telehealth established a telemedicine center in 2000 at an altitude of 4,300 meters in Aragonda, Andhra Pradesh. Sangita also chairs Apollo Knowledge, an education initiative focused on developing human capital in healthcare for the future. Over the past year, three significant developments stand out for Sangita. First, the organization’s efficient and effective recovery to normalcy in hospitals and clinics post-Covid-19. Second, the significant growth in Apollo Diagnostics, which grew by 32% in the non-Covid-19 category. Third, on February 5, she launched an AI-enabled medical prompt to assist doctors in making the most appropriate prognosis for patients.
This AI-ML engine uses the latest technology and a large number of Apollo patient journeys, as well as curated information from 17 medical journals. “The important point here is that this clinical intelligence engine has been gifted to all our doctors across the country in our efforts to help raise the standard of healthcare in India. This is a turning point in my career,” says Sangita. From being the CEO of Apollo Hospitals Chennai to Apollo Hospitals Hyderabad, to starting the country’s first third-party administrator, Family Healthcare Private Ltd (FHPL), to launching the group’s IT company Apollo Health Street, and becoming Executive Director in the hospital business to Joint MD, each role has only reinforced her deep passion for healthcare.
For the Apollo siblings, focus, speed, and precision are crucial. They see purpose and substance inherent in their work. “It comes from recognizing that here, more than in any other sector, we can never make a mistake because a life may be at stake,” says Suneeta.
The story of Prathap C. Reddy and his daughters is a powerful testament to vision, resilience, and dedication in the face of adversity. Together, they have transformed Apollo Hospitals into a beacon of excellence in healthcare, creating a legacy that continues to inspire and lead the way in the industry.