Bhilai's Medical Architect

He founded BSR Healthcare Group from his garage in 1992. Today, the group has a chain of diagnostic centres and hospitals in central India

Dr Manmohan Kumar Khanduja (52) Chairman & Managing Director, BSR Healthcare Group

Born in 1956 in Bhilai, he did his MD (Paediatrics) and DCH, and completed advanced training programme on Paediatric MR Imaging at University of Pittsburg, US.

Before an entrepreneur

He started out by working as consultant paediatrician at Bhilai Steel Plant's (BSP) 750-bed JLN Hospital. He worked here for eight years. When instead of the main hospital, he was transferred to peripheral health centre to see general patients, he did not want to continue there. In 1990, he quit BSP to start his own paediatric clinic.

Why an entrepreneur?

"Within a year of my paediatric practice, I was well established and then I wanted to do something more challenging," he reminisces. He was 35 then and felt there was no further scope of growth. "I realised that I wanted to do something more challenging, something bigger and better for my satisfaction as well as for the society,” he adds.

The first move

He started with an EEG machine at his garage in 1992 with the capital cost of just Rs 1 lakh. "This was financed by the supplier at an interest free EMI of Rs 10,000 per month," he informs. In 1993, he started the first complete diagnostic centre at Bhilai offering CT Scan, X-Ray, EEG, ECG, Pathology etc. "When I started my first diagnostic centre, I never thought I want to become an entrepreneur but I just kept on making efforts to make my dreams come true," he shares.

Over the years

He then expanded to have diagnostic centres at Raipur, Rajnandgaon, Korba and Nagpur w ith facilities of 1.5 T MRI and 64 Slice Cardiac CT. "Today, BSR Healthcare has gained the position of leader and pioneers in complete diagnostics with facilities including 1.5 Tesla MRI machine, 64 Slice MD CT Scan, 4-D Real-time Colour Doppler & Ultrasonography, EEG, Endoscopy, Bronchoscopy, Mammography, EMG, Echocardiography, TMT, Spirometry, digital X-Ray, ECG and hi-tech super specialty pathology lab," says he.

Dr Khanduja decided to expand his business from diagnostics to hospitals. Thus, in 2001, he started the first comprehensive cancer hospital of central India at Bhilai with facilities of radiotherapy, chemotherapy, oncosurgery and nuclear medicine. "We also realised the need of a good professionally-managed superspeciality hospital in this region. So we started 150-bed 'Apollo BSR Hospital at Bhilai to provide secondary and tertiary level healthcare at affordable cost," says he.

When he started, many doctors, friends and family members joined hands by becoming the shareholders and also by providing unsecured loans to his company. He then approached banks for loans for his various other projects. The BSR Healthcare Group had a turnover of Rs 10 crore in 2006-07 and Rs 17 crore in 2007-08. "We shall do Rs 35 crore in 2008-09," he says confidently.

Fears and apprehensions

When he started the group's first complete diagnostic centre, he was apprehensive whether this new concept of standalone diagnostic centre will be acceptable. "However, we were confident that the doctors want accurate and reliable reports, patients want good service at affordable cost, so this concept of a neutral diagnostic centre with all the facilities under one roof had to be successful and indeed it was," he beams.

Similarly, when he decided to start a comprehensive cancer hospital in Chattishgarh, everyone said that cancer hospitals are set up either by the Government or by trust and not by a private institute or an individual. But he was undeterred. "We are running it professionally and inspite of keeping very low charges, we are able to make profits," says he.

Also, when he planned a 150-bed multi superspeciality corporate hospital with modular OTs having hepa filters and laminar air flow, flat panel digital cath lab, state-of-the-art ICUs with facilities of open heart surgery, joint replacement surgery - some doubted the viability of the project in a place like Bhilai. "With our efforts and dedication our hospital is doing well and has already reached 50-60 per cent occupancy levels in just 10 months of operations," says he.

Mistakes made and lessons learnt

He has learnt to never compromise on the quality of the equipment and to always ensure that the supplier provides excellent after sales service. "Always go for the best available equipment so that you can use the same for next five to six years without bothering about competition. Also, never start a project unless sufficient finance is through," he suggests.

Overcoming roadblocks

He has faced equity crisis in mega projects. "However, always doctors and friends came forward and shared our vision to become a shareholder in our project and with our established credit line, the banks have confidence in us, so we keep on expanding our business," says he.

He always worked towards fulfilling the dreams of doctors and shareholders and that in turn fulfilled his dreams as well. "The doctors in this region wanted a tertiary care healthcare facility and thus we made Apollo BSR Hospitals. As there was no comprehensive cancer hospital in this region, so we started BSR Cancer Hospital & Research Institute," he informs.

Contribution to healthcare

“We were the first to start the concept of complete diagnostic centre and now we have eight hi-tech diagnostic centres serving the entire Central India. We started the first comprehensive cancer hospital of Chattisgarh state with facilities of radiotherapy, chemotherapy, onco surgery, nuclear medicine with gamma camera. We started the first cardiac surgery facility when it launched the 150-bed tertiary care multi-specialty super specialty hospital,” says he.

Formal degree in management?

Not having an formal degree in management, he believes in management through learning. "Everything is about relationship management. I have always attended healthcare management conferences and have always tried to keep myself updated on the latest trend not just in management but also in healthcare practices," says he.

Tips for entrepreneurship

"Vision without action is dream and action without vision is chaos. I would also like to add a saying by Warren Buffet — In the business world, the rearview mirror is always clearer than the windshield," says he.

Road Ahead

His aim is to establish BSR Healthcare as a chain of hospitals and diagnostic centres at pan-India level. The target is to be a Rs-500-crore company in the next five years. "We are also looking for suitable venture capital partner who will share our vision and would like to invest in this business with sustainable values," says he.

An entrepreneur that he admires in healthcare

Dr Prathap C Reddy.