Medical devices market in india 2014 - Sample


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Netscribes’ latest market research report titled Medical Devices Market in India 2014 captures the technologically driven aspect currently prevailing within the Indian healthcare sector. The booming Indian economy is also witnessing a tremendous surge in the domestic healthcare scenario which, in turn, is leading to perpetual demand for high quality medical products. The demand for high-end, quality devices is especially driven by the private healthcare sector in its efforts to provide sophisticated treatment to patients. However, India lags behind in manufacture of technologically advanced high-end medical equipment, and instead has to rely upon imports from multinationals with extensive service networks. On the other hand, the market for less cost intensive medical supplies and disposable equipment is dominated by domestic manufacturers.
Due to the industry’s dependence on imports, multinationals are showing interest in relocation of manufacturing facilities to India as well as in forging alliances with healthcare sector stakeholders in order to capture greater market share. This brings into focus a key role played by the government that involves taxation and import regulations. The government also takes up several initiatives for the benefit of the market.

• Overview of the medical devices market in India and forecasted market size data over 2012 to 2018
• Market Segmentation of medical devices by types
• Overview of the medical devices market in India by types and forecasted market size data over 2012 to 2018
• Snapshot of market segmentation of medical equipment
 New and Refurbished Medical Equipment
 Regional Demand for Medical Equipment
• Export-import overview of medical devices, value of export-import over 2009-10 to 2012-13 and country-wise value of export-import for 2011-12 and 2012-13
• Qualitative analysis of market drivers, challenges, trends and regulatory measures taken by the government
• Overview of the government bodies and their responsibilities
• Analysis of the competitive landscape and detailed profiles of major players

Why Buy
• Get a clear understanding of the medical devices market in India, how it operates and the various stages of the value chain
• Understand the current market segmentation and future growth potential of the medical devices market in India till 2018 and plan strategies to gain from it
• Strategize marketing, market-entry, market expansion, and other business plans by understanding factors influencing growth in the market
• Understand your competitors’ business structures, strategies and prospects, and respond accordingly
• Make more informed business decisions with the help of insightful recommendations provided to succeed in the Indian medical devices market

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Medical devices market in india 2014 - Sample

  1. 1. Medical Devices Market – India February 2014
  2. 2. 2MEDICAL DEVICES MARKET IN INDIA 2014.PPT Executive Summary Market Trends Competitive Landscape Domestic market for medical devices in India was pegged at INR X1 bn in 20-- which is poised to grow to INR X7 bn by 20-- Growing hospital infrastructure and healthcare spending is fostering the need for high-end devices for accurate and fast treatment Relocation of manufacturing facilities Increasing joint ventures and tie-ups Various exhibitions and trade fairs Drivers & Challenges Drivers:  Improving health infrastructure  Increasing healthcare spending  Changing demographics and growing target consumer group  Increasing lifestyle diseases and therapies  Increasing medical tourism in India  Growing health insurance market Government Involvement Govt. bodies and associations such as MoHFW, CDSCO and AIMED are aiming to provide medical devices sector with a regulatory structure in order to promote indigenous production CDSCO has laid down registration and license mechanisms to regularize import of drugs and devices Challenges:  High dependency on imports  Lack of standard regulatory structure  Increasing demand for refurbished devices  Focus on cost reduction and innovation  Use of plastics in medical devices Major Players Company A Company B Company C
  3. 3. 3MEDICAL DEVICES MARKET IN INDIA 2014.PPT •Macro Economic Indicators •Indian Healthcare Scenario •Introduction •Market Overview •Export Import •Distribution Channel •Drivers & Challenges •Trends •Government Involvement Government Bodies Government Regulations Government Initiatives •Competitive Landscape •Recent Investments •Strategic Recommendations •Appendix
  4. 4. 4 SAMPLEEconomic Indicators (1/3) 14.71 11 12 13 14 15 INR tn Q4 n4 m4 Q3 o3 n3 m3 Q2 p2 o2 n2 m2 Q1 p1 o1 n1 m1 20-- - --20-- - --20-- - -- 20-- - -- GDP at Factor Cost: Quarterly Inflation Rate: Monthly 0.83 1.26 0.42 0.85 1.73 0.0 0.5 1.0 1.5 2.0 Jun 2013 - Jul 2013 Oct 2013 - Nov 2013 % Sep 2013 - Oct 2013Aug 2013 - Sep 2013Jul 2013 - Aug 2013 MEDICAL DEVICES MARKET IN INDIA 2014.PPT
  5. 5. 5 Healthcare system in India requires a larger public outlay due to huge population base Healthcare Industry Overview • According to “World Health Statistics 2011 Report, India”, healthcare comprised 4.2% of India’s GDP in 2008  Public and private expenditure on healthcare as percentage of GDP was 1.4% and 2.8% respectively • Favorable demographics, increase in awareness levels and better medical care are some of the driving factors behind the healthcare sector in India • Hospitals form the largest segment of overall healthcare market, followed by pharmaceuticals, medical devices, health insurance and diagnostics • Gradual penetration of health insurance is making health services more affordable through increased demand for preventive and curative healthcare services • Superior quality healthcare, coupled with low treatment costs in comparison to other countries, is benefiting Indian medical tourism which has, in turn, enhanced the prospects of the Indian healthcare market  Treatment for major surgeries in India costs approximately 20% of that in developed countries Healthcare Sector – Market Size & Growth 0 5 10 15 h6 2017e INR units 2016e H% 2018e h7 h5 2015e h4 2014e h3 2013e h2 2012 h1 Healthcare Market Segmentation: Overview C% A% E% B% D% F% FD EC B A Note: ‘Others’ include healthcare IT and allied activities in healthcare space MEDICAL DEVICES MARKET IN INDIA 2014.PPT
  6. 6. 6MEDICAL DEVICES MARKET IN INDIA 2014.PPT Medical Devices are classified as per the risk level and their intended use •Medical devices under Section 3 (b) (iv) of the Drug and Cosmetic Act refers to any instrument, apparatus, machine, appliance, implant, in vitro reagent or calibrator, software, material or other similar or related articles  Intended by manufacturer to be used alone or in combination, for human beings for one or more specific purposes of diagnosis, prevention, monitoring, treatment or alleviation of disease  Does not achieve its primary intended action in or on the human body by pharmacological, immunological or metabolic means, but which may be assisted in its intended function by such means •Medical Devices in India are classified as per their risk levels and intended use and are divided into different classes •Classification is carried out in accordance with Annex IX of Schedule M-III provided by The Drugs Technical Advisory Board (DTAB) Class A Low Risk Class B Low-moderate Risk Class C Moderate-high Risk Class D • Heart valves, implantable defibrillator High Risk • Includes devices such as thermometers and tongue depressors • Hypodermic needles, suction equipment • Lung ventilator, bone fixation plate If a manufacturer desires to reclassify a device to a lower class, they must submit a justification to The Central Licensing Approval Authority (CLAA) for evaluation that the movement to the lesser stringent class will assure sufficient safety and effectiveness of the device Medical Devices – Definition
  7. 7. 7MEDICAL DEVICES MARKET IN INDIA 2014.PPT Growing population, along with a high growth economy, will be instrumental in driving demand for medical devices • Medical devices is essentially a multi product industry that comprises of products ranging from MRI equipment to surgical needles • There are some 700 medical device makers in India  Domestic manufacturers dominate the market for low value medical supplies such as needles, syringes, catheters, blood collection tubes, medical electronics and implants, while multinational corporations control the high end medical equipment segment • In terms of technology – high end medical devices are primarily found in tier I cities  Gradually it is expected that demand in tier II and tier III cities will also rise  As economic growth picks up, this transition is expected to be smooth • The various stakeholders in the medical devices industry include manufacturers, distributors, hospital chains, pathology labs and diagnostic centers • The medical equipment forms the largest share in the medical devices market  Medical equipments stand out due to the high price of the equipment in comparison to implants and disposables and supplies Market Overview (1/3) 0 200 400 600 800 INR bn X% 20--e X7 20--e X6 20--e X5 20--e X4 20--e X3 20--e X2 20-- X1 Medical Devices Market Size & Growth Market Segmentation 20-- Y% Z% X% YX Z
  8. 8. 8MEDICAL DEVICES MARKET IN INDIA 2014.PPT Drivers & Challenges – Summary Drivers Improving health infrastructure Increasing healthcare spending Changing demographics and growing target consumer group Increasing lifestyle diseases and therapies Increasing medical tourism in India Growing health insurance market Challenges High dependency on imports Lack of standard regulatory structure
  9. 9. 9 SAMPLE MEDICAL DEVICES MARKET IN INDIA 2014.PPT Trends ` Relocation of manufacturing facilities Increasing joint ventures and tie-ups Focus on cost reduction and innovation Increasing demand for refurbished devices Various exhibitions and trade fairs Key Trends Use of plastics in medical devices
  10. 10. 10MEDICAL DEVICES MARKET IN INDIA 2014.PPT Disclosures to be made by the importers of medical devices are as follows: • Applicant’s and foreign manufacturer’s company name, address and contact information • Name and address of the local authorized representative • Name and address of the importer • Description of device • Category of device • Method of use • Medicals specialty of the device • Particulars of the constituents • Packaging description • Storage conditions • Contraindications, warnings, precautions & alternate therapy, wherever applicable • Approval of the product from any other regulatory agency • Copy of ISO/EN Certification for the manufacturing facility • List of countries where the device is being sold • List of countries where device is withdrawn from sale with reasons, if any • Details of Good Manufacturing Practices employed by the manufacturer to ensure quality of the device • For e.g. Component/Material used, manufacturing process, final product testing or design inputs/outputs verification, shelf life Applicant Details • If a device incorporates a medicinal product, it must be accompanied by: data on the safety, quality & usefulness of the medicinal substance used, data on compatibility with the products, clinical data & published articles, and batch release certificate Product Information Regulatory Status Master File Devices Containing Medicinal Product Post Market Surveillance Conformity of Product Safety and Standards • Procedures for distribution of records • Complaint handling • Adverse incident reporting • Procedure for product recall • Registration Certificate shall be issued in Form 41 of the said Rules • Application for import license shall be made in Form 8 along with a fee of INR 1,000 in the Form and manner prescribed under the Drugs and Cosmetics Rules
  11. 11. 11MEDICAL DEVICES MARKET IN INDIA 2014.PPT Key Ratios of 3 Major Companies – Operational Basis (FY 2012-13) (1/4) Competitive Benchmarking (2/5) 0 20 40 60 c3b3 Player B Player C a3 % c2 b2 a2 Player A c1 b1 a1 Net MarginOperating MarginGross Margin (%) • Player A recorded gross margin of a1% higher than both Player B and Player C which recorded gross margins of b1% and c1% respectively • Player A recorded operating margin of a2%, higher than both Player B and Player C which recorded operating margins of b2% and c2% respectively • Player A recorded net margin of a3% higher than both Player B and Player C which recorded net margin, of b3% and c3% respectively Note: Calculation on basis of figures for latest available financial years
  12. 12. 12 SAMPLEPublic: Domestic Company – Player A (1/4) Key People Products and Services Company Information Offices and Centres – India Corporate Address xx Tel No. xx Fax No. xx Website xx Year of Incorporation xx Ticker Symbol xx Stock Exchange xx Name Designation Thane Head Office Category Products/Services Healthcare Equipment and Supplies Manufactures and sells sterile needled sutures such as absorbable , non absorbable sutures, female urinary incontinency set, surgical mesh, disposable skin stapler, cardiovascular vessel knife MEDICAL DEVICES MARKET IN INDIA 2014.PPT
  13. 13. 13 SAMPLEKey Ratios Financial Summary • The company earned a net profit of INR 15.74 mn in FY 20--, as compared to net profit of INR 15.09 mn in FY 20-- • The company reported total income of INR 540.87 in FY 20--, registering an increase of 3.06 per cent over FY 20-- • The company earned an operating margin of 7.48 per cent in FY 20-- , a decrease of 0.46 percentage points over FY 20-- • The company reported debt to equity ratio of 0.72 in FY 20--, an increase of 10.58 per cent over FY 20-- Financial Summary Net Profit / LossTotal Income 20.79 0 200 400 600 -20 0 20 40 2010 15.50 476.38 INR mn 2011 502.45 2012 15.09 INR mn 540.87524.80 2013 15.74 Indicators Value (22/01/2014) Market Capitalization (INR) 167.82 Particulars y-o-y change (2011-10) 2013 2012 2011 2010 Profitability Ratios Operating Margin -0.46 7.48% 7.94% 9.15% 8.09% Net Margin 0.02 2.89% 2.87% 4.14% 3.25% Profit Before Tax Margin -0.03 4.77% 4.80% 6.39% 4.94% Return on Equity -0.48 9.01% 9.49% 14.45% 12.60% Return on Capital Employed -2.32 19.00% 21.32% 25.47% 25.19% Return on Working Capital -3.93 24.87% 28.80% 35.41% 38.05% Return on Assets -1.20 8.52% 9.71% 10.69% 9.81% Return on Fixed Assets -0.98 83.26% 84.24% 98.45% 74.55% Cost Ratios Operating costs (% of Sales) 0.43 92.48% 92.06% 90.85% 91.91% Administration costs (% of Sales) 0.94 41.69% 40.75% 42.02% 37.63% Interest costs (% of Sales) 0.43 2.30% 1.87% 1.66% 2.92% Liquidity Ratios Current Ratio 0.08% 1.62 1.62 1.52 1.42 Cash Ratio 247.52% 0.12 0.03 0.01 0.02 Leverage Ratios Debt to Equity Ratio 10.58% 0.72 0.66 0.70 0.95 Debt to Capital Ratio 6.14% 0.42 0.40 0.41 0.49 Interest Coverage Ratio -23.00% 3.26 4.24 5.51 2.77 Efficiency Ratios Fixed Asset Turnover 4.48% 11.08 10.60 10.76 9.21 Asset Turnover -7.30% 1.13 1.22 1.17 1.21 Current Asset Turnover -8.59% 1.27 1.39 1.32 1.40 Working Capital Turnover -8.71% 3.31 3.62 3.87 4.70 Capital Employed Turnover -9.99% 1.80 2.00 2.06 1.99 Improved Decline Financial Snapshot Public: Domestic Company – Player A (2/4) MEDICAL DEVICES MARKET IN INDIA 2014.PPT
  14. 14. 14 Key Business Segments Key Geographic Segments Business Highlights Description Details Overview • Is an ISO 9001:2008 certified company • Introduced Good Manufacturing Practice in production and quality control areas ,including detailed batch record maintenance, recall system, procedure and production environment control and staff training Medical Equipment and Supplies • Product profile includes absorbable sutures ,including natural sutures and synthetic sutures • Offers non absorbable sutures ,including needles for cardiovascular surgery, needle suture combinations and temporary pacemaker electrode • Provides medical devices such as female urinary incontinency set, surgical mesh, skin stapler, titanium haemostatic clip for cardiovascular surgery, disposable aortic punch for cardiovascular anastomosis and cardiovascular vessel knife Recent Activities • It has consolidated its position in cardiovascular sutures segment and expects to carry out further consolidation during 2013-14 Player A has been operating solely in the medical devices & surgical sutures segment over the last five years Player A has been operating solely in India over the last five years 100% 40% 60% 80% 20% 0% 2013 100.0% Manufacturing and Selling of Medical Devices 20% 0% 100% 80% 60% 40% 2013 100.0% India Public: Domestic Company – Player A (3/4) MEDICAL DEVICES MARKET IN INDIA 2014.PPT
  15. 15. 15 SAMPLE • X • X • X• X TO WS Public: Domestic Company – Player A – SWOT Analysis (4/4) MEDICAL DEVICES MARKET IN INDIA 2014.PPT
  16. 16. 16 SAMPLEAppendix Ratio Calculations Operating Margin (Operating Income/Revenues)*100 Net Margin (Net Profit / Revenues) *100 Profit Before Tax Margin (Income Before Tax / Revenues *100 Return on Equity (ROE) (Net Income / Shareholders Equity)*100 Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100 Return on Working Capital (Net Income / Working Capital) *100 Return on Assets (Net Income / Total Assets)*100 Return on Fixed Assets (Net Income / Fixed Assets) *100 Operating Costs (% of Sales) (Operating Expenses / Sales) *100 Administration Costs (% of Sales) (Administrative Expenses / Sales) *100 Interest Costs (% of Sales) (Interest Expenses / Sales) *100 Ratio Calculations Current Ratio Current Assets / Current Liabilities Cash Ratio {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)} Debt to Equity Total Liabilities / Shareholders Equity Debt to Capital Ratio {Total Debt / (Shareholders Equity + Total Debt)} Interest Coverage Ratio EBIT / Interest Expense Fixed Asset Turnover Sales / Fixed Assets Asset Turnover Sales / Total Assets Current Asset Turnover Sales / Current Assets Working Capital Turnover Sales / Working Capital Capital Employed Turnover Sales / Shareholders Equity MEDICAL DEVICES MARKET IN INDIA 2014.PPT
  17. 17. 17 Sources of Information PRIMARY RESEARCH Interviews Industry Experts Company WebsitesLeading Newspapers Government Websites / ResourcesJournals / Magazines Online MagazinesBusiness Magazines Premium Databases Online Journals / Articles Electronic MediaPrint Media SECONDARY RESEARCH MEDICAL DEVICES MARKET IN INDIA 2014.PPT
  18. 18. 18 Thank you for the attention About Netscribes, Inc. Netscribes, Inc. is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes, Inc. is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Medical Devices Market – India report is part of Research on India’s Healthcare Industry Series. For any queries or customized research requirements, contact us at: Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction. Follow us on: Phone: +91 22 4098 7600 E-Mail: MEDICAL DEVICES MARKET IN INDIA 2014.PPT