NEW DELHI, March 17 Corporate healthcare sector is prioritising preventive care, digitalisation and employee well-being. This helps boost productivity, cut costs and bring down attrition, says Shikhar Malhotra, Vice Chairman and CEO, HCL Healthcare.
HCL Healthcare is a part of the HCL Group, which also includes HCLTech (formerly HCL Technologies) as its flagship company.
Malhotra says HCL Health has been profitable for the last five years and is planning to sustain its 30 per cent CAGR track record. It also plans to end the fiscal at ₹200 crore. Large employers continue to be the target clientele.
In an interview to businessline, he talks about the company’s growth plans, revenue targets, fund-raising and the way forward. Edited excerpts:
Can you elaborate on what corporate healthcare means?
Corporates healthcare refers to the healthcare services provided by large employers with 2,000 – 3,000 employees. These corporates look into the healthcare needs of their employees through offerings such as insurance, healthcare benefits and on-site services. Traditionally, these functions operated in silos within organisations and were fragmented.
While corporate healthcare expenditures have always existed, they have grown significantly (in the recent years) due to increasing company sizes and worsening employee health conditions. As a result, this market has become more defined and identifiable. We come in with comprehensive healthcare solutions that consolidate various aspects of these services.
This space is relatively nascent. So a more standardised terminology is established when there are numerous players in the market.
Our offerings cover a comprehensive suite of healthcare services, ranging from consultations and health screenings to nutrition plans and occupational health initiatives.
What is you revenue growth trajectory?
For FY25, we are targeting a revenue of ₹200 crore. We closed last fiscal at ₹150 crore. This aligns with our consistent growth trajectory of 30 per cent y-o-y, primarily driven by large corporations.
We are not a B2C player, and hence our presence is not visible in the retail markets.
Is this 30 per cent growth sustainable?
Yes, our growth has been sustainable. Over the past five years, we have maintained a steady CAGR of 30 per cent.
Additionally, we have been profitable for the past five years and intend to maintain profitability while making strategic investments in our business. Investments are already under-way. Our model is not based on a loss-leader approach; rather, we focus on making calculated investments that yield long-term value.
What are your expansion plans?
The investments under way are funded internally. We have a sustainable cash flow that allows us to re-invest in growth initiatives.
Over the next 24 months, we are focusing on building advanced digital products leveraging clinical data. Additionally, the company aims to collaborate with ecosystem partners such as insurance providers and employers to enhance services.
Currently, there are no plans for fundraising or listing. We are fully-owned by our parent company but operate independently from HCL Technologies. As long as we remain profitable, there is no immediate need to consider public-listing.
In an era of reduced expenses, do you see corporates still willing to invest in integrated healthcare solutions?
The market has evolved significantly over the past five years. The corporate mindset towards employee health and wellness has shifted significantly, particularly after Covid-19. The pandemic accelerated awareness and investment in preventive healthcare by nearly a decade. As companies scale up, their healthcare expenditure also rise. With the advent of integrated healthcare players like us, organisations now have visibility into their total healthcare spend, allowing for more strategic investments.
While exact pre-Covid numbers may not be directly comparable, estimates suggest the corporate healthcare space in India is now worth $700 million, covering consolidated spending on employee healthcare benefits. The shift toward integration and data-driven healthcare solutions has further accelerated market expansion.
Given the sensitive nature of health data, are employees willing to engage too?
Maintaining an individual’s confidentiality is crucial for us. While some may hesitate to disclose health issues directly to their employers, they are more comfortable engaging with a trusted healthcare provider like us.
Confidentiality is ensured where an individual employee data is never shared with employers. Instead, aggregated insights are provided so that they help companies identify health trends and risk factors, while preserving employee privacy.
Published on March 17, 2025
