Market Report on Diagnostics Sector

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Market Report on Diagnostics Sector

  1. 1. Vijya Research & Advisory
  2. 2. Broad Areas Covered <ul><li>Sector </li></ul><ul><li>Market </li></ul><ul><li>Growth Drivers </li></ul><ul><li>Key Players </li></ul><ul><li>Government Role, Initiatives and Policies </li></ul><ul><li>Investments </li></ul><ul><li>Strengths and Weakness </li></ul><ul><li>Growth Opportunities </li></ul>Vijya Research & Advisory
  3. 3. The Report contents <ul><li>Introduction </li></ul><ul><li>Market Size </li></ul><ul><li>Market Structure </li></ul><ul><li>Growth Drivers </li></ul><ul><li>Opportunities </li></ul><ul><li>Challenges </li></ul><ul><li>Regulatory Environment </li></ul><ul><li>Investments </li></ul><ul><li>Swot Analysis </li></ul><ul><li>PESTLE Analysis </li></ul><ul><li>Road Ahead </li></ul>Vijya Research & Advisory
  4. 4. Market Size <ul><li>There are about 100,000 laboratories in India </li></ul><ul><li>Average all India penetration of institutional diagnostic services: </li></ul><ul><li>4.6 % in rural areas </li></ul><ul><li>6 % in urban areas </li></ul><ul><li>Average all India penetration of institutional diagnostic services: </li></ul><ul><li>1.75 % in rural areas </li></ul><ul><li>2.6 % in urban areas </li></ul><ul><li> </li></ul>Vijya Research & Advisory
  5. 5. Market Structure <ul><li>The Diagnostic services sector is divided into four major segments which are Biochemistry, Hematology, Immunology and Microbiology. </li></ul><ul><li>The Diagnostic market in India, is largely dominated by organized players. </li></ul><ul><li>Organized players constitute approximately 10 % of the diagnostic market. </li></ul>Vijya Research & Advisory
  6. 6. Growth Drivers <ul><li>The major growth drivers in the diagnostic sector are: </li></ul><ul><li>Rising population </li></ul><ul><li>Expanding middle class income </li></ul><ul><li>Rise of tier II and tier III cities </li></ul><ul><li>Rise of diseases </li></ul><ul><li>Research and Development </li></ul><ul><li>Global approach of domestic players’ </li></ul><ul><li>Entry of new players </li></ul>Vijya Research & Advisory
  7. 7. Challenges <ul><li>Diagnostic sector has to face some challenges such as: </li></ul><ul><li>High capital costs </li></ul><ul><li>Cost of medical equipments </li></ul><ul><li>Availability of human resources </li></ul><ul><li>Competition from standalone players </li></ul>Vijya Research & Advisory
  8. 8. Government Initiatives <ul><li>Major government initiatives in diagnostic sector include : </li></ul><ul><li>Building rural healthcare infrastructure </li></ul><ul><li>Entering into Public-Private Partnerships (PPP) </li></ul><ul><li>Bringing about Medical Devices Regulation Bill </li></ul><ul><li>Central government is establishing India’s first specialized devices centre in Gujarat to promote indigenous R & D efforts: ‘National Centre for Medical Devices </li></ul>Vijya Research & Advisory
  9. 9. Taxes <ul><li>In Union Budget 2011-12, the excise duty on medical equipment has been increased from four to five per cent. </li></ul><ul><li>Reduction in import duty on equipment from 25% to 5%. </li></ul><ul><li>Customs duty reduced to 8% from 16% for medical surgical, veterinary furniture. </li></ul><ul><li>Customs duty on 24 medical equipments such as X-ray, goniometer, teletherapy stimular machines reduced to 5%. </li></ul><ul><li>Depreciation limit on equipment rose from 25% to 40% to encourage imports. </li></ul>Vijya Research & Advisory
  10. 10. Key Findings of the Report <ul><li>The diagnostic sector is projected to contribute Rs. 11,250 crore (USD 2.5 billion) by 2012. </li></ul><ul><li>Nearly 5% of India’s GDP is spent on healthcare. </li></ul><ul><li>almost 60-70 per cent of medical treatments are based on laboratory diagnostic tests </li></ul><ul><li>There are about 100,000 diagnostic laboratories in India conducting nearly 2,000 to 3,000 tests per day for larger laboratories. </li></ul><ul><li>There are approximately 100,000 diagnostic laboratories serving nearly 1.21 billion Indian people. This implies 8 laboratories per 100,000 people. </li></ul>Vijya Research & Advisory The revenues from diagnostic segments are projected to grow at a CAGR of around 20 per cent over the next three year.
  11. 11. Key Findings of the Report (Contd.) <ul><li>Mergers & acquisitions (M&A) are likely to pick up pace in diagnostic sector. There may be consolidation among larger players through mergers as well. </li></ul><ul><li>The Indian diagnostics giants are expanding their presence not just in India, but also in overseas territories like the Middle East and the U.S. </li></ul><ul><li>Upper cap for foreign direct investment in diagnostic sector and approved under automatic route. </li></ul><ul><li>The inflow of Foreign Direct Investment in Indian hospital and diagnostic sector was Rs. 4,373.45 crore from April 2000 to February 2011. </li></ul>Vijya Research & Advisory
  12. 12. <ul><li>To purchase the report or to know more about it, please contact: </li></ul><ul><li>Ms. Piyush Jain </li></ul><ul><li>Vijya Research & Advisory </li></ul><ul><li>Email: [email_address] </li></ul><ul><li>http://www.kapsole.com/indian-diagnostic-industry-and-market-report-2011-12/ </li></ul>Vijya Research & Advisory

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