2008-wdtc-nayyar.ppt

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2008-wdtc-nayyar.ppt

  1. 2. Special thanks to Mr Eric Shirley Dental Trade Alliance
  2. 3. US Dental Trade Opportunities in India <ul><li>Presented by: </li></ul><ul><li>Arun Nayyar DMD </li></ul><ul><li>President & CEO </li></ul><ul><li>A N O V I International </li></ul>
  3. 4. United States of India Special thanks Dr Yogesh Virmani DR Sandesh mayekar Mr Rajnish Verma
  4. 5. Arun Nayyar BDS, DMD, MS, Cert Fixed Pros <ul><li>Private Practice – Atlanta, Georgia, USA </li></ul><ul><li>Principal Research Scientist </li></ul><ul><li>Dental Technology Center @ GaTech </li></ul><ul><li>Director of Fixed Prosthodontics MCG School of Dentistry, Augusta, Ga-retired </li></ul>
  5. 6. BRIC Report, Goldman Sachs “ I have never seen India so dynamic, vibrant and full of business opportunities”. - Dan Scheinman, Cisco System Inc. as told to Business Week, August 2005 “ We came to India for the costs, stayed for the quality and are now investing for innovation”. John Redwood Economic Competitiveness Policy Group, UK “ India is now truly a land of opportunity”. Jack Welch General Electric “ India is a developed country as far as intellectual capital is concerned”. Peter Loescher Chief Executive Siemens By 2032, India will be among the three largest economies in the world. Why India? – Quote Unquote Craig Barrett Intel Corporation “ India has evolved into one of the world's leading technology centers“. Mr Paul de Voijs Volvo Car India “ India is a very exciting market and the luxury car segment is growing exponentially here”.
  6. 7. Understanding India <ul><li>India is a multifaceted nation </li></ul><ul><li>Regions are as diverse as countries of Europe. </li></ul><ul><li>People and Workers </li></ul><ul><li>The United States of India </li></ul>
  7. 8. Destination India <ul><li>IT </li></ul><ul><li>is </li></ul><ul><li>rapidly increasing </li></ul><ul><li>India’s </li></ul><ul><li>global economic presence </li></ul>
  8. 9. India’s rising economic profile 2007 <ul><li>Per capita $797 ( 1 : 8 ) </li></ul><ul><li>9.4% growth in GDP </li></ul><ul><ul><ul><li>2 nd only to China </li></ul></ul></ul><ul><li>$830 Billion GDP in 2007 </li></ul>
  9. 10. India: Fastest Growing Free Market Democracy in the world New Universities New Infrastructure
  10. 11. India’s 2008 Shopping List 150 Boeing + 150 Airbus
  11. 12. Talent Pool – our future customers 3.2 million new graduates per annum Non Technical Grads Technical graduates 50% < 35years old
  12. 13. Destination India New Business Opportunity For American Dental Companies
  13. 14. Mangalore Dental Education in India -2008 India USA Dental Colleges 268 53 New Dentists (pa) 21,000 4,100 Post Grad 2,069 Dentists 100,000 120,000
  14. 15. 5 year projection for American Dental Business - 100,000 Dentists today 21,000 new Dentists per year =105,000 new customers by 2013 ALL Speak English !!! By 2013 there will be 200,000+ dentists = twice the # of Dentists in the US
  15. 16. Dental offices in India
  16. 17. USA : India <ul><li>1 : 8 purchasing power </li></ul><ul><li>$1 in USA = $8 in India </li></ul><ul><li>ROI is <15% </li></ul>
  17. 18. Understanding the Indian Dental Business Patient Pool <ul><li>Population >1 Billion </li></ul><ul><ul><ul><ul><li>democratic nation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>fee for service practices </li></ul></ul></ul></ul><ul><li><80% illiterate </li></ul><ul><li>If 4 % are middle class </li></ul><ul><li>=> 40 Million potential patients </li></ul>
  18. 19. Dentist in Private Practice - Annual Gross 1 : 8 <ul><li>City: Large Small </li></ul><ul><li>Estab.Practice $100-170K $60-80K </li></ul><ul><li>Young $ 30-40K $16-22K </li></ul><ul><li>New grad $ 12-24K $ 8-15K </li></ul><ul><li> </li></ul>
  19. 20. Dentist – Gross annual income 1:8 <ul><li>Large town $100,000 </li></ul><ul><ul><li>Small town $ 60,000 </li></ul></ul>
  20. 21. Dental Assistant Salary* – 1:8 <ul><li>Large town $3,400 </li></ul><ul><ul><li>Small town $2,600 </li></ul></ul>* annual
  21. 22. Dental Fees ( city size ) 1:8 <ul><li>Small Large </li></ul><ul><ul><li>Composite $16 $50 </li></ul></ul><ul><ul><li>PFM crown (np) $40 $150 </li></ul></ul><ul><ul><li>Veneer $160 $300 </li></ul></ul><ul><ul><li>Extraction $5 $15 </li></ul></ul>
  22. 23. Dental Lab Fees 1:8 <ul><li> </li></ul><ul><ul><li>PFM crown (np) $20 - $40 </li></ul></ul><ul><ul><li>Veneer $35 - $70 </li></ul></ul><ul><ul><li>Denture $20 - $35 </li></ul></ul>
  23. 24. Dental Business in India <ul><li>Current market > US $60 million </li></ul><ul><li>Germany, France, Japan, Taiwan and Korea dominate the market </li></ul><ul><li>Major presence Dentsply and 3M </li></ul><ul><li>Very price sensitive market </li></ul><ul><li>< 15% profit </li></ul>
  24. 25. 200,000+ dentists by 2013 <ul><ul><ul><li>100 % market growth potential </li></ul></ul></ul><ul><ul><ul><li>Very Price sensitive market </li></ul></ul></ul><ul><ul><ul><li>Buying power is 1:8 </li></ul></ul></ul><ul><ul><ul><li>Corporate profit margin 10 -15% </li></ul></ul></ul><ul><ul><ul><li>40million potential patients </li></ul></ul></ul><ul><ul><ul><li>Do not expect immediate returns </li></ul></ul></ul><ul><ul><ul><li>Educate the dentist and consumer </li></ul></ul></ul>
  25. 26. US dental presence Comments from Dental Dealers <ul><li>Very little US dental presence </li></ul><ul><li>US sell via small dealers, inconsistent </li></ul><ul><li>Little customer support </li></ul><ul><li>Reluctant to work with Indian vendors </li></ul><ul><li>Do not understand India market </li></ul><ul><li>1: 8 price sensitive </li></ul>
  26. 27. “ INDIAN DENTISTS PREFER TO USE AMERICAN DENTAL PRODUCTS “ <ul><ul><ul><li>Read US English publications </li></ul></ul></ul><ul><ul><ul><li>Internet access to US dental magazines </li></ul></ul></ul><ul><ul><ul><li>American dental books in standard curriculum </li></ul></ul></ul>
  27. 28. How can a small US company access the Indian dental market? <ul><li>Hire a Consultant, understand the market </li></ul><ul><li>Partner with established Indian companies </li></ul><ul><li>Meet wth Indian Trade Visitors </li></ul><ul><li>Indian Dentists visiting US </li></ul>
  28. 29. Profile of Indian Dental Companies <ul><li>Most are small traders </li></ul><ul><li>There are 8 -10 well established Co. </li></ul><ul><li>Each city has 1 or 2 major vendors </li></ul><ul><li>They all sell what is available </li></ul>
  29. 30. Doing business in India 1 : 8 <ul><li>Pricing for the local economy </li></ul><ul><li>Support products with good marketing </li></ul><ul><li>Support International and Domestic speakers </li></ul>
  30. 31. Long term ROI <ul><li>Imports duty is 40% </li></ul><ul><li>Joint venture with 51:49 equity partner </li></ul><ul><li>Establish local packing facility </li></ul><ul><li>Import knock down , assemble locally </li></ul><ul><li>Plan to manufacture locally </li></ul>
  31. 32. Major Cities <ul><li>Major cities: </li></ul><ul><ul><li>Delhi, Chennai, Mumbai, Bangalore </li></ul></ul><ul><li>Many 2 nd level cities with great demand </li></ul>
  32. 33. Establish an Office <ul><li>Location - Delhi or Mumbai </li></ul><ul><li>$2500 month for office space </li></ul><ul><li>$5000 month for sales force </li></ul><ul><li>$1000 - $5000 for marketing </li></ul>
  33. 34. Grey market <ul><li>Because of special pricing – always an issue </li></ul><ul><li>Pack for local market, </li></ul><ul><ul><li>copy the drug industry – change name , same product </li></ul></ul><ul><li>Control volume sales </li></ul><ul><li>Work with known vendors </li></ul><ul><li>Establish your own sales force </li></ul>
  34. 35. Is money safe? <ul><li>Democratic country </li></ul><ul><li>Established legal system </li></ul><ul><li>International banks </li></ul><ul><li>Full $$ conversion </li></ul><ul><li>Free currency flow </li></ul>
  35. 36. Great Preference for US Products <ul><li>Endo, Prosthetic, Restorative and Implants </li></ul><ul><li>Composite, Impression materials </li></ul><ul><li>Cement systems </li></ul><ul><li>Ceramic and Resin Lab products </li></ul><ul><li>Lab and clinic products </li></ul><ul><li>Dental Chairs, Units </li></ul>
  36. 37. MY Strategy <ul><li>Establish an AMERICAN trading group </li></ul><ul><li>Share costs , Hire a Consultant </li></ul><ul><li>Open a trade office in India </li></ul><ul><li>Send US opinion leaders to lecture </li></ul><ul><li>Showcase products at trade shows </li></ul><ul><li>Advertise aggressively </li></ul>$ $ $ $ $ $ $ $ $ $ $ $ $ $ $
  37. 38. Anovi International – a US dental consulting group for India
  38. 39. For a copy of this presentation contact: Arun Nayyar 404-247- 5970 [email_address]
  39. 40. Thank you Questions Please

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