Market Research Report : Telemedicine Market in India 2012


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Continual improvement in the field of Information and Communications Technology (ICT) coupled with favorable demographics prevailing in India is predominantly driving the telemedicine market in India. The market receives plenty of government attention which in turn further proves to be a boon for growth. Competition in the market is healthy wherein most of the players are focusing on the rural sections of India.

The report begins with an introduction section, featuring an illustration defining the concept of telemedicine. It depicts all the components that actually build up telemedicine system.

Market overview section of the report talks about the Indian market as a whole and highlights crucial aspect of the market such as factors driving the market, government participation, proportion of telemedicine within the overall healthcare sector and the preferred business model by vendors in the market. The section features forecasted market figures (2011-2015e) as well. Telemedicine snapshot portion has been derived after a thorough research, wherein key strategic insights about the market has been mentioned so as to provide a clear cut idea about the market scenario in India in current times.

SWOT analysis of the overall telemedicine market has been done and presented in the report, which further provides readers with the relevant strength, weakness, opportunities and threats for the market in India. The section features a detailed analysis of each SWOT point.

Telemedicine technology of the report talks about the various technological concepts that currently prevail in the market. The technological models that have been mentioned in the report include Point to Point, Point to Multipoint and Multipoint to Multipoint models. Each individual model has been represented graphically in order to give the reader a visual point of reference and make the concept easier to understand. The section is immediately followed by Major Application Area section which talks about the various healthcare areas within which telemedicine has gained a significant amount of traction over the years. Players operating in these areas are witnessing a steady growth and a strong boost is further anticipated in the enduing years.

Government Initiative section talks about all the major steps taken so far by the Government of India (GoI). The key steps identified so far includes the formation of departments and organization such as Department of Information Technology, Indian Space Research Organization, Ministry of External Affairs and Ministry of Health and Family Welfare. The report features a comprehensive list of all the major initiatives taken by these fundamental bodies. The section will be useful in figuring out the key incentives or the benefits that players in the market are subjected to.

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Market Research Report : Telemedicine Market in India 2012

  1. 1. Telemedicine Market – India Telemedicine Market IndiaJuly 2012
  2. 2. Executive Summary  The Indian telemedicine market is currently valued at INR xx mn and is expected to attain a CAGR of 20% to reach INR xx mn by 2015 Market  The market has received plenty of government attention which in turn has inflicted positive g growth rate  With the continual improvement in the field of telecommunications, the market will reach a state of full swing in the ensuing years  Point to PointTelemedicine T l di i  Point to Multi Point Technology  Multi Point to Multi Point Drivers Challenges  Favorable demographics  Weak ecosystem for stake holdersDrivers and   Continual improvement in connectivity  Implementation IssuesChallenges  Shortage of healthcare professionals in rural areas  Increasing ageing population Increasing ageing population Key Telemedicine PlayersCompetition Teleradiology Solutions Televital India Religare Technologies Apollo Telehealth Services TELEMEDICINE MARKET IN INDIA 2012.PPT 2
  3. 3. •Market Introduction•Market Overview•SWOT Analysis•Telemedicine Technology•Major Application Areas•Government Initiatives•Drivers and Challenges•Strategic Insights – New Entrants•Major Players  j l•Strategic Recommendations•Appendix  A di TELEMEDICINE MARKET IN INDIA 2012.PPT 3
  4. 4. SAMPLE Telemedicine ‐ Summary Communication  Biomedical  Technology gy Engineering g g Telemedicine Information  Medical Science Technology TELEMEDICINE MARKET IN INDIA 2012.PPT 4
  5. 5. Telemedicine is gaining a robust growth rate and is expected gain further traction in the years to comeTelemedicine Market ‐ Overview• Indian telemedicine market is currently at its nascent stage, however it has tremendous potential to unfold in the  years to come • The market has been constantly under the priority sectors of the government as a result of which plenty of initiatives  have been taken so far which in turn has infused tremendous growth opportunities  accounts for approximately xx%  SAMPLE  SAMPLE• The overall healthcare industry shells out an amount close to INR 47 bn on a yearly basis, out of which telemedicine • Primarily, a public private partnership (PPP) is considered to be the most appropriate business model for the Indian  telemedicine market   In the business model, infrastructure support can be provided by GoI, whereas the private operators can cater to the healthcare human  resource requirements Telemedicine – Market Size & Growth INR mn a b xx c 0 2011 2012e 2013e 2014e 2015e TELEMEDICINE MARKET IN INDIA 2012.PPT 5
  6. 6. SAMPLE Telemedicine Market – Snapshot (1/2) Increasing Awareness Prime Reasons for  Growth Government Initiatives  XXXXX Urban market share is very small Urban Market  Scenario YYYYYY XXXXX Average Setup Cost Primarily ranges between INR 0.05 mn – INR 2 mn TELEMEDICINE MARKET IN INDIA 2012.PPT 6
  7. 7. Strength SAMPLE Telemedicine Market ‐ SWOT Analysis Summary  Weakness•Favorable Demographics •Lack of Technological Awareness Lack of Technological Awareness •Government Initiatives •XXX•XXXX •YYYY•YYYY SWOT Analysis Opportunity Threat •Lack of Confidence•Arrival of 4G Spectrum •XXXXX TELEMEDICINE MARKET IN INDIA 2012.PPT 7
  8. 8. Types of telemedicine is basically distinguished on the basis  SAMPLE of the participants involved Point to Point Point to Multi Point Types of Telemedicine Multi Point to Multi  Point TELEMEDICINE MARKET IN INDIA 2012.PPT 8
  9. 9. SAMPLE Point to Point Telemedicine – FrameworkPatient EndP ti t E d Doctors End D t E d Digital Camera Doctor’s Chamber Scanner Switch Switch Webcam Display Unit Display Unit The Framework depicted is indicative TELEMEDICINE MARKET IN INDIA 2012.PPT 9
  10. 10. Telemedicine has find its implementation across a wide range of areas  SAMPLE  Tele Consultation Used to facilitate  communication, so as to  Tele Diagnosis provide patients and local  doctors with the initial lines of  treatment  XXXX Telemedicine  Primarily implemented to Implementation YYYYY provide educational services  provide educational services including training and  Tele Training guidance to doctors and  paramedics To provide monitoring services  To provide monitoring services ZZZZZZ for intensive and emergency  situations Used to provide support  AAAAA services in case of any disaster  TELEMEDICINE MARKET IN INDIA 2012.PPT 10
  11. 11. Government Initiatives ‐ Summary SAMPLE  Department of Information  Indian Space Research  Technology Organization  Initiatives  Ministry of Health and Family  Ministry of External Affairs Welfare TELEMEDICINE MARKET IN INDIA 2012.PPT 11
  12. 12. SAMPLE Department of Information Technology (DIT)• Eyeing the tremendous growth prospects in telemedicine, the Department of Information Technology (DIT) has played a  crucial role in the upliftment of the sector • So far the organization has taken certain concrete initiatives including development of technology, launching pilot  schemes and standardization of the overall market in India • Further to standardize telemedicine services, DIT has drafted the ‘Recommended Guidelines & Standrads for Practice of  Telemedicine in India’• Framework used to define the guidelines and standrads can be illustrated as below: Telemedicine Service Providers Technology Providers XXXXX Information Exchange Standards  Security  AAAAAAA Technology Telemedicine Consultation Primary Protocols XXXXXX Secondary Guidelines and Standards  Tertiary Process Guidelines System Requirements TELEMEDICINE MARKET IN INDIA 2012.PPT 12
  13. 13. Indian Space Research Organization  SAMPLE • ISRO as a government body has been active towards the upliftment of Indian telemedicine market since its inception   Primarily, these initiatives have been started under the GRAMSAT programme • Some of the major steps taken for the telemedicine market includes the following:  Linking of Indian National Satellite (INSAT) to rural areas including Jammu, Kashmir & Ladakh, Andaman, Lakshadweep and North k f l ll ( ) l l h kh kh h Eastern state hospitals and health centres  It is also engaged in providing seamless connectivity between remote/ rural hospitals and super specialty hospitals so as to facilitate tele  consultation, treatment & training, Continuing Medical Education (CME) and mobile telemedicine units for rural areas  XX Hospitals YYY District / Rural Hospitals District / Rural Hospitals ISRO Telemedicine  Network B Mobile Vans B Mobile Vans A Super Specialty Hospitals A Super Specialty Hospitals TELEMEDICINE MARKET IN INDIA 2012.PPT 13
  14. 14. SAMPLE Ministry of Health and Family Welfare (1/2)  So far, the Ministry of Health and Family Welfare (MoH&FW) has taken an array of initiatives for the Indian  telemedicine market, some of which can be , mentioned as below: Joined hands with ISRO for the implementation of Disease Surveillance Programme Establishing the OncoNET India network, which connects 25 regional  cancer centres and 1– peripheral centres to provide comprehensive  cancer centres and 1– peripheral centres to provide comprehensive cancer treatment facilities and facilitate cancer prevention and research  activities  Has approved tele‐ophthalmology project to provide eye care specialty  services in the rural areas of Punjab, Uttar Pradesh, West Bengal, with  the aide of mobile vans TELEMEDICINE MARKET IN INDIA 2012.PPT 14
  15. 15. Ministry of External Affairs  SAMPLE  SAARC Telemedicine Network • Has initiated a pilot project wherein one or two hospitals from each of the SAARC nations have been  i i i d il j h i h i l f h f h S C i h b connected to super specialty hospitals in India • Super specialty hospitals identified for this project includes AIIMS, SGPGIMS, PGIMER and CARE hospital  e p ojec s e pec ed o b g o e a ced usage o e e ed c e a eg o a e e s a d e co ec • The project is expected to bring forth enhanced usage of telemedicine at regional levels and interconnect it  with other necessary areas including education, business process outsourcing and mass communication Pam‐African e network Project • MEA has joined hands with Telecommunications Consultants India Ltd. (TCIL)  so as to establish a VSAT based  tele‐medicine and tele‐education market for African countries in 53 nations of the African Union  t l di i d t l d ti k t f Af i t i i 53 ti f th Af i U i • For this purpose, 10 super specialty hospitals have been identified to cater to the tele‐health service for 53  African hospitals  p g y • This initiative will push the demands in the Indian market significantly  TELEMEDICINE MARKET IN INDIA 2012.PPT 15
  16. 16. Drivers & Challenges – Summary  SAMPLE  Drivers Challenges Favorable demographics Weak ecosystem for stake holders Continual improvement in  Continual improvement in connectivity Implementation Issues Shortage of healthcare professionals in  rural areas Increasing ageing population TELEMEDICINE MARKET IN INDIA 2012.PPT 16
  17. 17. Improvement in the field of connectivity will act as a major boon for the overall market in IndiaContinual improvement in connectivity Impact• The overall concept of telemedicine is majorly dependant on the connectivity medium available• Generally, internet and satellite connections are the prime modes to interconnect a remote  y, p health centre to the concerned healthcare authority  more opportunities for players  more opportunities for players SAMPLE • Currently, the overall connectivity (both internet as well as satellite) in India has gained  significant momentum and is expected to grow further in the years to come, thereby providing • Additionally, improvement in connections will improve the standard and quality of services,  thereby gaining trust and confidence of end users  Total Internet Subscribers – India Rural Subscribers Urban Subscribers Subscriber Base mn a b c d e f 0 2010 2011 2012e 2013e 2014e 2015e TELEMEDICINE MARKET IN INDIA 2012.PPT 17
  18. 18. New players in the market can largely benefit from the rural market in India  SAMPLE • The healthcare infrastructure prevailing, especially in the rural parts of India is weak, unreliable and faces acute  shortage of proper healthcare professionals• It is this opportunity gap which can be effectively targeted by new entrants in the market can establish a stronger  foothold  foothold• Below listed are the details of health infrastructure prevailing in rural India: Rural Healthcare  Infrastructure  Sub Centres Primary Health Centres Community Health Centres TELEMEDICINE MARKET IN INDIA 2012.PPT 18
  19. 19. SAMPLE Rural Health Infrastructure ‐ CoverageAverage Rural Population Category Norms Present coverageSub Centre xxx XxxPrimary Health Centre Xxx Xxx Community Health Centre  Xxx  XxxAverage Rural AreaAverage Rural Area Category Present coverage (Sq. Km)Sub Centre XxxPrimary Health CentrePi H l hC Xxx XCommunity Health Centre  Xxx Average No. of VillagesAverage No. of Villages Category Present coverageSub Centre Xxx Primary Health CentrePrimary Health Centre Xxx  XxxCommunity Health Centre  Xxx  TELEMEDICINE MARKET IN INDIA 2012.PPT 19
  20. 20. State/ UT SAMPLE  Rural Infrastructure – In Position (x/x) Population (2011) Health Infrastructure (Established 2007‐12) Health Infrastructure (Functional) Total  Rural X Y Z X Y ZXxx 84665533 56311788 12522 1624 281 12522 1624 281xxx 1382611 1069165 286 97 48 286 97 48xxx 31169272 26780516 4604 938 108 4604 938 108xxx 103804637 92075028 9696 1863 70 9696 1863 70xxx 25540196 19603658 5076 741 148 5076 741 148xxx 1457723 551414 175 19 5 175 19 5xxx 60383628 34670817 7274 1123 305 7274 1123 305xxx 25353081 16531493 2508 444 107 2508 444 107xxx 6856509 6167805 2067 453 76 2067 453 76xxx 12548926 9134820 1907 397 83 1907 397 83xxx 32966238 25036946 3958 330 188 3958 330 188xxx 61130704 37552529 8870 2310 180 8870 2310 180xxx 33387677 17455506 4575 809 224 4575 809 224xxx 72597565 52537899 8869 1156 333 8869 1156 333xxx 112372972 61545441 10580 1809 365 10580 1809 365xxx 2721756 1899624 420 80 16 420 80 16xxx 2964007 2368971 405 109 29 405 109 29xxx 1091014 529037 370 57 9 370 57 9 TELEMEDICINE MARKET IN INDIA 2012.PPT 20
  21. 21. Major Public Companies ‐ SummaryNet Profit/Loss3,000 Size of the Bubble represents Market Capitalization in INR bn2,5002,0001,5001,000 500 bbb SAMPLE  SAMPLE 0 xxx ccc ‐500‐1,000 ‐2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000 Total income aaa bbb ccc Note: All figures are in INR mn and are based on the latest financials available TELEMEDICINE MARKET IN INDIA 2012.PPT 21
  22. 22. Public: Foreign Company – Player A (1/3)Company Information SAMPLE  Offices and Centres – India Corporate AddressTel No. GurgaonFax No.WebsiteYear of IncorporationTicker SymbolStock Exchange India OfficeProducts and ServicesProducts and ServicesCategory Products/Services Key People Name N Designation D i ti Note: The list of products and services is not exhaustive TELEMEDICINE MARKET IN INDIA 2012.PPT 22
  23. 23. Public: Foreign Company – Player A (2/3) Financial Snapshot i i lS h SAMPLE  Key Ratios K i Revenue Total Income Net Profit/Loss Profit y‐o‐y change  Particulars  2011 2010 2009 2008 INR mn INR mn (2011‐10) 79418.1 80000 8000 Profitability Ratios 52366.1 54353.8 Operating Margin 2.83 11.33% 8.50% 8.96% 10.49% 60000 44877.7 44877 7 6000 Net Margin 3.46 9.07% 5.61% 5.16% 7.03% 40000 4000 Profit Before Tax Margin 3.08 9.84% 6.75% 6.99% 9.06% 20000 2000 Return on Equity 4.09 9.91% 5.82% 4.73% 7.82% 0 0 Return on Capital Employed 3.20 11.41% 8.21% 7.58% 10.62% Return on Working Capital 10.44 22.85% 12.41% 10.63% 19.73% 2008 2009 2010 2011 Return on Assets 2.94 7.36% 4.42% 3.60% 5.92% Financial Summary  Return on Fixed Assets 42.43 104.43% 62.01% 61.39% 97.93% Cost Ratios • The company incurred a net profit of INR 7207 mn in FY 2011, as  Operating costs (% of Sales) ‐2.83 88.67% 91.50% 91.04% 89.43% compared to net profit of INR 3051.4 mn in FY 2010 Administration costs (% of  ‐3.00 34.56% 37.57% 35.05% 34.01% • The company reported total income of  INR 79418.1 mn in FY 2011,  Sales) as compared to INR 54353.8 mn in FY 2010 as compared to INR 54353 8 mn in FY 2010 Interest costs (% of Sales) Interest costs (% of Sales) ‐0.01 0.00% % 0.01% % 0.00% % 0.00% % Liquidity Ratios • The company earned an operating margin of 11.33 per cent in FY  Current Ratio ‐9.39% 2.65 2.93 2.93 2.79 2011, an increase of 2.83 percentage points over FY 2010 Cash Ratio ‐12.26% 1.65 1.88 1.93 1.53 • The company reported debt to equity ratio of 0.35 in FY 2011, a  Leverage Ratios decrease of 9.30 per cent over FY 2010 Debt to Equity Ratio 9.30% 0.35 0.32 0.32 0.32 Debt to Capital Ratio b i l i Key Financial Performance Indicators N.A. 0.00 0.00 0.00 0.00 Interest Coverage Ratio N.A. N.A. 624.33 N.A. N.A. Indicators Value (dd/mm/2012) Efficiency Ratios Market Capitalization (INR mn)* 102732.3 Fixed Asset Turnover 4.14% 11.50 11.04 11.90 13.83 Asset Turnover 2.97% 0.81 0.79 0.70 0.84 Total Enterprise Value (INR mn)* 71473.4 Current Asset Turnover 7.76% 1.57 1.46 1.36 1.79 EPS (INR) EPS (INR) 0.65 Working Capital Turnover 13.88% 2.52 2.21 2.06 2.79 PE Ratio (Absolute) 16.08 Capital Employed Turnover 5.27% 1.09 1.04 0.92 1.10* Figures are taken as on 2nd of Jul, 2012 Improved Decline TELEMEDICINE MARKET IN INDIA 2012.PPT 23
  24. 24. Key Business Segments SAMPLE Public: Foreign Company – Player A (3/3) Key Geographic Segments Communications Equipment a b c 79,375 The company has been  The company has been100% 100% operating in the  57% 56% 54% 51% communications equipment 50% segment since 2008 50% 26% 25% 25% 25% 17% 20% 21% 24% 0% 0% 2011 2008 2009 2010 2011Key InformationDescription  DetailsOverview • xxxProduct PortfolioProduct Portfolio • xxx Note: Business Segments and Geographic Segments are based on total revenues TELEMEDICINE MARKET IN INDIA 2012.PPT 24
  25. 25. Major Private Companies ‐ SummaryNet Profit/Loss2,000 Size of the Bubble represents Total Assets in INR mn1,500 AAA1,000 500 0 ‐500 DDD CCC BBB SAMPLE  EEE‐1,000‐1,500 ‐2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000 Total Income AAA BBB CCC DDD EEE Note: All figures are in INR mn and are based on the latest financials available TELEMEDICINE MARKET IN INDIA 2012.PPT 25
  26. 26. Private: Domestic Company – Player B (1/2)Company Information SAMPLE  Offices and Centres – India Corporate AddressTel No.Fax No.WebsiteYear of Incorporation Hyderabad Head OfficeProducts and ServicesProducts and ServicesCategory Products/Services Key People Name N Designation D i ti Note: The list of products and services is not exhaustive TELEMEDICINE MARKET IN INDIA 2012.PPT 26
  27. 27. SAMPLE Private: Domestic Company – Player B (2/2)Business HighlightsDescription  NewsOverview • xxxServices • xxx TELEMEDICINE MARKET IN INDIA 2012.PPT 27
  28. 28. Thank you for the attentionThe Telemedicine Market – India 2012 report is a part of Netscribes Information Technology Industry Series.For more detailed information or customized research requirements please contact:Phone: +91 33 4064 6214E‐Mail: sales@netscribes.comFollow us on:About 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 true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.Disclaimer: This report is published for general information only. Although high standards have been used in the preparation of this report,Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes. and Netscribes is not responsible for any loss or damage arising from use of this document This document is the sole property of Netscribes andprior permission is required for guidelines on reproduction. TELEMEDICINE MARKET IN INDIA 2012.PPT 28