We’ll proceed to scale our clinic community and lift consciousness amongst shoppers: Amarinder Singh, Founder & CEO, Clove Dental – Information Healthcare
Oral health plays a crucial role in the overall well-being. Studies suggest that dental caries, oral cancers, and periodontal diseases are major public health challenges in India.
It is noteworthy that poor oral health
According to the World Health Organization (WHO), oral diseases affect close to 3.5 billion people worldwide, with 3 out of 4 people affected living in middle-income countries. An estimated two billion people suffer from caries of permanent teeth and 514 million children suffer from caries of primary teeth.
A report by Insights10 reveals that India
In November last year, Clove Dental’s parent company, Global Dental Services, raised an equity investment of $50 million from the Qatar Investment Authority (QIA). Recently, in an interview with Financial Express.com, Amarinder Singh, Founder & CEO, Clove Dental talked about the company’s journey, the expansion plans for FY24-25, the present landscape of the oral healthcare industry
Oral healthcare is still a neglected or under-prioritized area in India. According to you, what is the current status of oral health in India, and what more needs to be done in this area?
It’s a reality that 90 percent of Indians have some form of dental disease. While not all of them experience pain immediately, neglecting these issues can lead to more severe problems later on. Dentistry, like other aspects of health, is easier to address and less painful when caught early. Over the past 13 years, I’ve observed a significant increase in consumer awareness about oral health, especially in the last 5 or 6 years. As a company, we organize over 1300 oral awareness camps very month, reaching consumers at the grassroots level. This proactive approach has led to more interest and engagement from the public. Indians are now recognizing the importance of oral health, which has direct links to overall health. For example, poor oral health is correlated with Alzheimer’s disease, cardiovascular diseases, and complications during pregnancy leading to lower birth weight babies. With the mouth being the gateway to the body, neglecting oral health can result in various health challenges. Fortunately, increased access to information through digitization and social media has accelerated awareness. This rapid progress in awareness over the past few years has been remarkable compared to the earlier phase of our journey.
Could you share some key takeaways from your 13-year-old journey? Also, every journey has its challenges and opportunities. What are the challenges that you faced and how you turned those challenges into opportunities for growth?
Any challenge can be viewed as an opportunity. In an industry like dentistry, which primarily consists of individual dental practitioners the main obstacle lies in the significant capital investment required for setting up fully equipped clinics. Modern dentistry has advanced over the last several decades and today’s dental operatory, chairs, x-rays equipment, software systems, sterilization systems, instruments & surgical tools, etc. all require capital investment. Ongoing treatments require imported branded materials from companies like 3M, Ivoclar, Sirona, Straumann, Align tech, etc., also require ongoing investments. These substantial investments (Clove spends over 40 lakh in capital investment for each clinic and only uses branded materials) are not convenient for individual practitioners, resulting in compromised treatment quality and consumer confidence.
To address this challenge, Clove Dental plays a crucial role by providing well-equipped, modern dental clinics to doctors, allowing them to focus on their expertise without the burden of setting up and managing infrastructure. Over time, it has become evident that this model adds significant value to doctors, ensuring that they can deliver high-quality dental care to their patients.
Another challenge lies in maintaining consistent quality across all clinics, especially with over 500 locations spanning vast geographical distances. Clove Dental has implemented innovative technology solutions, including artificial intelligence
Additionally, Clove Dental has digitized all patient records, from consultations to preoperative images and post-treatment follow-ups. This comprehensive digital record allows for peer reviews, where anonymized patient records are reviewed by other doctors to identify and rectify any errors or missed details. This peer review mechanism significantly enhances the quality of treatment, resulting in a higher success rate for procedures like root canal treatments, extractions, implants and crowns, braces, aligners, etc.
Furthermore, Clove leverages AI and computer vision technology to ensure proper sterilization of equipment and infrastructure. Computer vision algorithms monitor the sterilization process (a repetitive human activity), signalling when an area is clean and ready for use. This ensures that hygiene standards are consistently maintained across all clinics, mitigating the risk of infections and ensuring patient safety. This is very unique to Clove – given their proprietary AI software systems.
Clove Dental’s proactive approach to addressing challenges in the dental industry through innovative technology solutions has set it apart as a leader in the field. From providing well-equipped clinics to implementing AI-driven quality control measures, the brand is committed to delivering high-quality dental care and maintaining patient safety across its vast network of clinics.
In India, the out-of-pocket expenditure is quite high and people are also not proactive towards dental care. How are you dealing with this?
This perspective is what I call the “Ostrich philosophy.” It’s akin to burying one’s head in the sand, hoping the problem will disappear. However, dental issues don’t resolve themselves. In global standards, visiting a dentist twice a year is recommended, while in India, we suggest at least an annual visit, with twice a year being ideal. By seeing a dentist annually, problems can be caught early, such as decay, which can then be addressed with a filling or cleaning, costing only a few thousand rupees, a reasonable expense for most middle-class Indians.
However, procrastination can lead to deeper infections, necessitating procedures like root canals, which can cost few thousand rupees. Ignoring the problem and resorting to painkillers only exacerbates the issue, eventually leading to tooth extraction, which may cost a several thousand rupees. Subsequently, opting for a crown or implant can incur additional expenses.
Dental care in India is quite affordable, with routine check-ups costing as little as 500-1000 rupees annually. Moreover, advancements in technology have made treatments like laser therapy virtually painless, with only a marginal increase in cost. The misconception that dentistry is expensive persists due to outdated perceptions and negative past experiences.
In reality, dental care is accessible and affordable. Regular visits for cleanings and check-ups can prevent minor issues from escalating into severe problems. It’s essential to raise awareness among consumers about the affordability and importance of dental care. While we can provide clinics, skilled doctors, and infrastructure, ultimately, individuals must prioritize their oral health.
By spreading awareness about the affordability and necessity of dental care, we can encourage more people to prioritize their oral health and seek regular check-ups.
What are your upcoming business growth plans for the FY25?
We are witnessing growth on both the Clove side and our other ventures. This year, we’ve added 123 new locations and today we operate over 475 clinics, with projections indicating another 130 to 140 additions next year. Our approach emphasizes the importance of selecting optimal locations in suitable neighbourhoods. Occasionally, despite our efforts, we may miss out on some promising opportunities. However, our capacity to open 130-140 locations remains consistent, potentially even reaching 150, depending on feasibility. This strategy will persist over the next decade. In Delhi alone, there are 10,000 dental clinics, contrasting with our modest count of 200. Considering that dental issues affect around 90% of the population, encountering a dentist is virtually inevitable. While I sincerely hope you never require medical attention, encountering a dentist is practically unavoidable.
According to you how has the oral Healthcare landscape evolved over the years and what has been the role of players like Clove in this area especially for India?
The evolution of healthcare globally has been remarkable, especially in the field of dentistry. Despite the small area it encompasses, the mouth is intricate, involving gums, cheeks, tongue, lips, sinuses, and the lower jaw. It’s a vital area that impacts one’s overall well-being, housing more nerve endings than any other part of the body, which is why dental pain can be intense. Extensive research worldwide has led to the development of advanced tools, technology, and systems, including AI, at a phenomenal pace.
Today, dental procedures like implants and crowns offer permanent, lifelike solutions that eliminate the need for removable dentures. This progress has significantly improved oral healthcare globally. In India, awareness about dental health is increasing, thanks to initiatives by companies like ours. By engaging in discussions with dental groups and media outlets, we aim to raise awareness and educate the public about the importance of dental care.
Our scale allows us to implement quality systems across our network of clinics, ensuring that all our dentists maintain a certain standard of care. Additionally, we’re collaborating with global dental suppliers to introduce cutting-edge technologies to India, such as robotic dentistry. These advancements improve precision and outcomes, which may not be achievable with human hands alone.
The role of large organizations like ours is to standardize practices and provide comprehensive training to dental professionals. Many of our doctors, predominantly women, may take breaks in their careers due to personal reasons but return with valuable experience that benefits our organization and the profession as a whole. Our platform allows us to amplify the impact of individual successes, sharing best practices and innovations across our extensive network.
Our objective is to transform the dental landscape in India positively. By achieving this mission, we not only ensure our success and growth but also contribute to the overall advancement of the profession.
What new advancements are you planning to include in your portfolio for the best of care for the patients?
A couple of years ago, we introduced laser technology, which I mentioned earlier. This technology addresses issues like gummy smiles, where excess gum tissue is visible, typically requiring painful procedures to correct. With lasers, however, the process is painless, offering a real solution to customers without the challenges of traditional methods. Another example is our invisible aligners business. Many adults, around 60 percent or more, have misaligned teeth due to natural jaw growth variations. In the past, a lack of solutions led to stories and insecurities during childhood, which often persisted into adulthood. Our aligners provide an inconspicuous solution, allowing people to confidently showcase their smiles in today’s digitally-driven world.
Additionally, we’ve introduced crowns made of high-end materials like zirconia, which are both durable and natural-looking. Our advancements leverage technologies such as 3D printing, AI, and CAD/CAM machines, along with innovative materials like nanoparticles, replacing outdated options like lead and aluminium fillings.
Our scale enables collaborations with leading dental companies, as evidenced by recent discussions with a $25 billion global dental company’s CEO. By bringing cutting-edge technologies to India, we’re revolutionizing dental care. However, aligning diverse practices can pose challenges, highlighting the need for adaptation despite resistance to change. Overall, the benefits of innovation far outweigh any drawbacks, driving significant progress in our field.
There have been increasing trends in Dental Cosmetics. How do you see that trend shaping in India?
For centuries, Indians have taken pride in beauty, a concept deeply ingrained in our culture and history. This admiration for beauty transcends time, evident in our rich heritage. Today, several beauty and cosmetic-focused players have surged in popularity, driven by the growing demand for beauty products among consumers. Both men and women are investing significant sums in skincare, hairstyles, and cosmetics to enhance their appearance.
However, despite this focus on facial beauty, one crucial aspect often overlooked is dental aesthetics. Your smile, defined by your teeth, is perhaps the most noticeable feature of your face. Unlike the eyes, which hold significance in intimate, one-on-one interactions, the smile is prominent even in casual encounters. Yet, the importance of dental aesthetics has been overshadowed by other beauty concerns.
Teeth represent the last frontier of beauty, a facet often neglected due to a lack of awareness or guidance. While we invest in countless products for eyebrows, skin, and hair, dental care remains underemphasized. However, with advancements in dentistry, achieving a flawless smile is now within reach.
A beautiful smile can transform your appearance, reducing the need for excessive makeup or cosmetic enhancements. By addressing dental imperfections, such as misalignment or discoloration, individuals can achieve a natural radiance that enhances their overall attractiveness.
Contrary to popular belief, achieving a perfect smile is neither inconvenient nor expensive. With affordable dental solutions available, individuals can invest in their oral health and aesthetics without breaking the bank. By committing to regular dental care, anyone can attain a Bollywood
Prioritising dental aesthetics is a wise investment in one’s overall appearance and self-esteem. Just as we devote time and resources to skincare and hairstyling, caring for our teeth can significantly enhance our beauty quotient. Let’s seize the opportunity to perfect our smiles and radiate confidence wherever we go.
So you recently secured funding from QIA? And what has been the status so far, like how you are planning to leverage those funds?
Between Qatar, which was the most recent investor, and the previous investors, Investcorp, Tybourne and our existing shareholders, we raised approximately $116 million in the last 12 months. This is in addition to the $99 million we had previously raised. This influx of new capital significantly bolstered our financial standing. The reason we attracted investors of this calibre is twofold. Firstly, they recognize the inherent difficulty in building what we have accomplished. Secondly, they understand the undeniable demand and need for our services. Their investment reflects their confidence in our business model and growth potential. To put it into perspective, the $116 million investment from Qatar, Investcorp, Tybourne and incumbents represents the largest funding round in the dental industry to date. In total, we have raised $215 million, which is two and half times more than any other company in our sector. Such substantial capital injection is a testament to the investors’ astuteness and the attractiveness of our business proposition.
Moving forward, our focus is on responsible expansion and maintaining the quality of our services. We will continue to scale our clinic network while also raising awareness among consumers. It’s crucial to recognize the vast market opportunity we are addressing. With an estimated 100 million middle-class individuals in India alone who could benefit from our smile-enhancing solutions, the market potential is immense. Our smile enhancing aligners, priced at around 60-70 thousand rupees over a 12-15 month period, addresses a significant need in the market. By tapping into this market, we envision a total market potential of $100 billion. Therefore, our mission is clear: to reach and educate the end consumers who stand to benefit from our services. We encourage everyone to become advocates for positive change by spreading awareness and knowledge about the solutions we offer.
For FY25 specifically, what are your upcoming business expansion plans? Also, is Clove looking at M&A?
Clove’s expansion plans entail adding approximately 100 to 150 new locations, which would bring the total from 475 to around 600 to 615. Our strategy has been to grow our network organically and that will remain our primary focus. From an M&A perspective, there aren’t many groups in the dental space to begin with, and few that become logical partners for us. While we maintain communication with various industry peers, the landscape of mergers and acquisitions is complex and must align with the right pricing and strategic objectives for both parties involved. We are open-minded and always engage to evaluate partnership potentials. It’s essential to acknowledge that within the dental market, there are limited groups with the capacity to engage in such transactions. This constraint can impact negotiation dynamics, but we remain open to exploring possibilities as they arise.
In recent times there has been also an increase in the D2C market of Dental products. How Clove is looking at them as a competitor or as a market?
Our Whistle Aligners and Whistle Crown businesses operate within the direct-to-consumer (D2C) market. While we employ a D2C model, dental procedures such as aligners and crown placement require specialized expertise. Unlike purchasing a face cream, which is a relatively straightforward process, obtaining dental treatments involves anatomically altering the structure of the teeth. For instance, aligners necessitate the application of force to shift teeth positions, which cannot be accomplished through a D2C approach. It’s akin to purchasing an industrial-grade air conditioning system without the knowledge or expertise to install it properly. In such cases, professional installers are indispensable to ensure the equipment’s correct installation and optimal functionality. Therefore, in the dental industry, a D2C approach is not feasible due to the intricate nature of dental procedures, which require the expertise of trained professionals.
So in the last 13 years, Clove has contributed immensely in the dental care space. What makes a better or unique as compared to other market players?
In the past 13 years, Clove Dental has made substantial contributions to the dental care space. What sets it apart is its commitment to quality, convenience, and affordability. Convenience is ensured through weekend availability and widespread presence in neighbourhoods, offering transparent pricing and a hassle-free experience akin to a department store model rather than a traditional market setup. Quality remains a top priority, with doctors incentivized based on their performance, ensuring a focus on excellence. Moreover, economies of scale enable Clove Dental to rationalize costs and offer affordable dental solutions without compromising on quality. This unique blend of convenience, quality, and affordability, delivered with integrity, distinguishes Clove Dental in the dental care Industry.
