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Market Research Report : Pharmacy Retail Market in India 2012
 

Market Research Report : Pharmacy Retail Market in India 2012

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For the complete report, get in touch with us at : info@netscribes.com ...

For the complete report, get in touch with us at : info@netscribes.com

The Pharmacy Retail Market inIndiais a considerably big market already but has tremendous scope to grow further. Retail pharmacy outlets happens to be the most dominant distribution channel that is responsible for satisfying customer needs of pharmaceutical and allied products directly.
The report begins with the introduction section that deals with the growing significance and work scope of pharmacy retailers followed by the various formats of stores prevalent in the country and the distribution channel from pharmacy manufacturer to the retailer.
The market overview section provides an insight into the current and forecasted market size of the pharmacy retail market till 2016. The significance of retail outlets as the most popular pharmacy sales source is conceived from the market trend figures.
The report is then provided with the driving factors that are encouraging the pharmacy retail market among which the growing pharmaceutical market finds a prominent position. Increased healthcare spending, changing disease profile, growing OTC segment, consumer’s attitude towards their disease and illness and lucrative profit margins evolve as the possible reasons for the industry to prosper. A detailed analysis has been made of the drivers. The key challenges of the industry have also been analysed of which fragmentation of the market into organized and unorganized sections is a primary reason. Others include long distribution and supply chain that involves too many middlemen in the business and the existence of counterfeit drugs.

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    Market Research Report : Pharmacy Retail Market in India 2012 Market Research Report : Pharmacy Retail Market in India 2012 Presentation Transcript

    • Pharmacy Retail Market - IndiaMarch 2012
    • Executive Summary Pharmacy Retail market in India was valued INR x.x mn in 20-- and is expected to reach INR y.y mn by 20-- Market The market is highly competitive due to low entry barrier There are numerous players in the market operating in different parts of our country Drivers: Challenges: – Growth in pharmaceuticals sector – Fragmented industry LE Drivers & – Increase in healthcare spending – Long distribution and supply chain – Changing disease profile – Counterfeit drugsChallenges P – Growth in OTC segment – Consumer attitude M – Attractive margins A Emerging Trends Technology Trends S Loyalty Schemes Value Added Services Tracking of Counterfeit Drugs Tele Consultation Service Customer Relationship Management (CRM) Trends Government entry in Pharmacy Retail Enterprise Resource Planning (ERP) Organized retailers starting pharmacy chains Supply Chain Management (SCM) Entry of private labels Rural area expansion Health Insurance Plans made available in Pharmacy outletsGovernment License procurement Foreign Direct Investment Ownership Restrictions Drugs & Cosmetics Act 1940 Role Pharmacy A leads in the organized pharma retail market with highest number of outletsCompetition Other leading organized players include Pharmacy B., Pharmacy C, Pharmacy D, Pharmacy E, Pharmacy F, Pharmacy G, Pharmacy H, Pharmacy I, Pharmacy J, Pharmacy K PHARMACY RETAIL MARKET – INDIA.PPT 2
    • •Introduction•Market Overview LE•Drivers & Challenges P SAM•Emerging Trends•Technology Trends•Government Regulations•Competition•Strategic Recommendation•Appendix PHARMACY RETAIL MARKET – INDIA.PPT 3
    • Pharmacy Retail serves direct consumer requirements Pharmacy Retail Pharmacy Retail deals with the selling of drugs directly for consumption purpose The concept is also known as Community Pharmacy LE Growing Importance of Pharmacy Retail in India P M Dispensing prescription medicine to the customers A Checking dosage and ensuring that medicines are correctly and safely supplied and labeled (pharmacist are legally responsible for any dispensing errors) Liaisoning with doctors about prescriptions S Selling over the counter medicines Counseling and advising the Customers on the treatment of minor ailments Advising customers of any adverse side effects of medicines or potential interactions with other medicines/ treatments Overseeing the ordering and safe storage of medical products Keeping up to date with current pharmacy practice, new drugs and their uses Maintain computerized records Managing, supervising and training pharmacy support staff Promoting sales and developing the businessSource: PHARMACY RETAIL MARKET – INDIA.PPT 4
    • Unorganized segment of pharmaceutical market dominates a large volume of the pharmaceutical retail market Market Overview Market Size and Growth • Indian Drug Retail Market is currently worth INR xx.x INR bn and is currently growing at a rate of m% per annum 1,500 G The retail pharmacy market is ranked nth in terms of value 18.5% F and pth in terms of volume E 1,000 LE There are approximately x stores across the country D C • The pharmacy sector on the whole contributes a share A B 500 P of a-b% to India’s GDP • The market is distinctly fragmented into organized and M 0 unorganized players 2010 2011 2012e 2013e 2014e 2015e 2016e A The unorganized channel dominates the retail pharmaceutical S market commanding as high as z1% of the market share while roughly z2% is captured by the organized players Market Segmentation Organized retail pharmacy is on a high growth path progressing at a rate of approximately z3% per annum Organized Unorganized • The unorganized market is currently valued at In % B1% B2% B3% B4% B6% approximately INR xx.x occupying m1% of the total 100% 100% B5% B7% market size while organized segment is valued at 80% approximately INR yy.y making up m2% of the remaining 60% • In India, pharmacies are the dominant distribution 40% A1% A2% A3% A4% A5% A6% A7% channel generating A% of the overall pharmaceutical sales 20% • Currently, approximately 91% of drug sales is through the retail 0% markets, while institutional sales are as low as 9% 2010 2011 2012 2013 2014 2015 2016Source: PHARMACY RETAIL MARKET – INDIA.PPT 5
    • Drivers & Challenges Drivers Growth in pharmaceuticals sector PLE Challenges M Increase in healthcare spending Fragmented industry Changing disease profile Growth in OTC segment SA Long distribution and supply chain Counterfeit drugs Consumer attitude Attractive margins PHARMACY RETAIL MARKET – INDIA.PPT 6
    • Emerging Trends Loyalty Schemes Value Added Services Tracking of Counterfeit Drug Tele Consultation Service Trends ` Entry of Government in Pharmacy Retailing PLE Organized Retailers Starting Pharmacy Chains SAM Entry of Private Labels Rural Expansion Health Insurance Plans made available in Pharmacy outlets PHARMACY RETAIL MARKET – INDIA.PPT 7
    • Technology Trends: Summary Customer Relationship Management PLE SAM Technology Trends Supply Chain Enterprise Resource Management Planning PHARMACY RETAIL MARKET – INDIA.PPT 8
    • Government Role: Summary Licence Procurement PLE SAM Role of Government Foreign Direct Ownership Restrictions Investment PHARMACY RETAIL MARKET – INDIA.PPT 9
    • Major Private Companies - Summary PAT 1,000 R Size of the Bubble represents Total Assets 0 in INR XX -1,000 -2,000 -3,000 Q PLE -4,000 -5,000 -6,000 -7,000 SAM -8,000 -9,000 P-10,000-11,000 Revenue -500,000 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 R Q P PHARMACY RETAIL MARKET – INDIA.PPT 10
    • Public: Domestic Company – P Company (1/4) Company Information Offices and Centres – India 49, X Road Corporate Address Bangalore Tel No. +91 xx xxxxx xxxxx Fax No. +91 xx xxxxx xxxxx LE Website www.ppp.com P Year of Incorporation 19-- M Ticker Symbol xxxxxx A Stock Exchange NNN City C Products and Services Category Products/Services S City A City B Head Office Regional Offices Pharmacy Nutritional supplements, life saving Key People drugs Name Designation Products Personal care Person M Founder Person N CFO Person O Head Person Q PresidentSource: PHARMACY RETAIL MARKET – INDIA.PPT 11
    • Public: Domestic Company – P Company (2/4) Pharmacy Retail Outlet Locations State Cities/ Townships State 1 City A, City B, City C State 2 City D, Township E, Township F LE State 3 Township G, Township H, City I MP SASource: PHARMACY RETAIL MARKET – INDIA.PPT 12
    • Public: Domestic Company – P Company (3/4) Financial Snapshot Key Ratios Particulars y-o-y change 20-- 20-- 20-- 20-- Revenue Revenue Profit INR mn INR mn Profitability Ratios q Profit / Loss t r p Operating Margin s Net Margin s n r Profit Before Tax Margin LE n p Return on Equity m o 0 q t Return on Capital Employed 0 -m P Return on Working Capital 20-- 20-- 20-- 20-- Return on Assets M Financial Summary Return on Fixed Assets Cost Ratios • The company incurred a net loss of INR xx mn in FY 20--, as compared to net profit of INR yy mn in FY 20-- • The company reported total income of INR xx bn in FY 20--, registering an increase of yy per cent over FY 20-- • The company earned an operating margin of x per cent in FY 20-- a SA Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales) Liquidity Ratios Current Ratio decrease of y percentage points over FY 20-- Cash Ratio • The company reported debt to equity ratio of x in FY 20--, an Leverage Ratios increase of y per cent over FY 20-- Debt to Equity Ratio Debt to Capital Ratio Financial Summary Interest Coverage RatioIndicators Present Value Efficiency Ratios Market Capitalization (INR) X mn Fixed Asset Turnover Total Enterprise Value (INR) Y mn Asset Turnover Current Asset Turnover EPS (INR) Z mn Working Capital Turnover PE Ratio (Absolute) A Capital Employed TurnoverSource: Improved Decline PHARMACY RETAIL MARKET – INDIA.PPT 13
    • Public: Domestic Company – P Company (4/4) Key Business Segments Key Geographic Segments m n o x y z x x x LE x x x x y x y y y z y z y z y z y MP z 20-- z 20-- z 20-- z 20-- A 20-- 20-- 20-- 20-- Key Recent Developments Description Overview S • Operates as a subsidiary of Company A News • Has tie up with M and N • Serves huge number of customers through their pharmacy chain • Operates in X states inclusive of Y with m number of outlets Pharmacy Retail • Organizes free health camps and gives free health insurance • Store formats include shop in shops, hospitals and high street storesSource: PHARMACY RETAIL MARKET – INDIA.PPT 14
    • AppendixRatio Calculations Ratio Calculations (Operating Current Assets / CurrentOperating Margin Current Ratio Income/Revenues)*100 LiabilitiesNet Margin (Net Profit / Revenues) *100 {(Cash & Bank Balance + LE Cash Ratio Marketable Securities) / Current (Income Before Tax / Revenues Liabilities)}Profit Before Tax Margin P *100 Total Liabilities / Shareholders Debt to Equity (Net Income / Shareholders Equity MReturn on Equity (ROE) Equity)*100 {Total Debt / (Shareholders A Debt to Capital Ratio Equity + Total Debt)} S EBIT / (Total Assets – CurrentReturn on Capital (ROCE) Liabilities)*100 Interest Coverage Ratio EBIT / Interest Expense (Net Income / Working Capital)Return on Working Capital *100 Fixed Asset Turnover Sales / Fixed AssetsReturn on Assets (Net Income / Total Assets)*100 Asset Turnover Sales / Total AssetsReturn on Fixed Assets (Net Income / Fixed Assets) *100 (Operating Expenses / Sales) Current Asset Turnover Sales / Current AssetsOperating Costs (% of Sales) *100Administration Costs (% of (Administrative Expenses / Sales) Working Capital Turnover Sales / Working CapitalSales) *100 Capital Employed Turnover Sales / Shareholders EquityInterest Costs (% of Sales) (Interest Expenses / Sales) *100 PHARMACY RETAIL MARKET – INDIA.PPT 15
    • Thank you for the attentionThe Hospital Information System Market in India report is part of Research on India’sHealthcare Industry Series.For more detailed information or customized research requirements please contact:Tamojit RoyPhone: +91 33 4064 6215E-Mail: tamojit.roy@netscribes.comResearch on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quickinsights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries onAbout NetscribesNetscribes 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 truevalue proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growthobjectives.Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India,Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is thesole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. PHARMACY RETAIL MARKET – INDIA.PPT 16