This document discusses the potential investment opportunities in diabetes healthcare in India. It provides the following key points:
1. India is experiencing rapid urbanization, rising incomes, and increased discretionary spending, fueling growth in private healthcare consumption. Chronic diseases like diabetes, hypertension, and respiratory illnesses present a large market opportunity.
2. India's healthcare infrastructure is below global standards, with most care delivered through scattered local clinics rather than centralized systems. This presents an opportunity to introduce more organized, process-based care models.
3. Diabetes in particular is a growing problem, with official estimates of 6% of the population affected but possibly up to 11% when including undiagnosed cases. The diabetes market
Understanding the Potential for Diabetes Healthcare Investment in India
1. 1
UNDERSTANDING THE POTENTIAL INVESTMENT IN
DIABETES HEALTHCARE - INDIA
By
DR. JONATHAN D’SOUZA
PhD (Alternative Medicine), MSc. MBA
2. INDIA DEMOGRAPHICS
Urban
Rural
Population
31 %
38 %
69% 62 %
2011 2020 E
CAGR = 10%
1.32bn
1.2bn
Per Capita Income
2011 2020 E
CAGR = 13%
USD 4200
USD 1219
15.7
32.6
19.8
11.6
7.7
4.6
4.8
2011
59.7
28
25.1
22.3
23.1
6
5
5
6.5
There is a distinct trend of urbanization, rising per capita income, discretionary spending power,
fuelling domestic pvt. Consumption.
Disc
spending
Basic
Discretionary spending
40.3
72
2011 2020 E
Consumption Expenditure
(Excl. Govt)
2020 E
3.2
4
Misc
F &B
Transport
Rent, Fuel
Clothing
Furniture
Medical
Recreation
Source : India Census, Source : Pharmatutor, M Da &rk eBt irnegp oWrthite book, D&B report
3. HEALTHCARE INFRASTRUCTURE
Healthcare Infrastructure is well below global Avg. & WHO
guidelines
2.6 3.5
WHO
guideline
Global
Avg.
1.3
0.9
0.7
2012
2005
2002
92 % of Healthcare Delivery is through stand alone clinics
(Trade)
Specialized
care centers
8%
Stand alone clinics
92%
Expertise is Scattered & No two doctors are the same Protocols are non standardized and most records
Source : Pharmatutor, Marketing White book
are on paper
India
Drs / Nurses
Per 1000
4. CHRONIC DISEASE MARKET IN INDIA
Chronic Disease market size (people in mn)
95 60 55
Hypertension Diabetes Respiratory
Chronic Disease market size ($ in bn)
300 286 256
Diabetes Respiratory Hypertension
Lifetime value of a patient ( in $)
5,200 5,000 2,700
Respiratory Diabetes Hypertension
CHRONIC DISEASE
MARKET GROWTH RATE
IS ESTIMATED @ 20 %
BARRIERS TO CARE
Tracking of multiple
indicators
Current system is curative
& not preventive
Time is a constraint
Emotional & Psychological
Burden attached
CHRONIC DISEASE MARKET IN INDIA
5. Diagnosis
Diabetic
Counselling
Diet &
lifestyle
UNDERSTANDING DIABETES
DIABETES MELLITUS DIABETIC TYPES
Devices
Drugs
“Is an endocrine disorder where pancreas
are unable to secrete enough insulin to
control blood sugar levels”
i. e : A disease in which the body doesn't
produce or properly use insulin
Common causes include
• Family History
• Age
• Sedentary lifestyle
• Stress
• Processed Foods
Diabetes growth rate est. @ 21%
Est. of undetected diabetes is @ 5 % of
population
Official estimates are @ 6 % of population
Type 1: Insulin dependent Diabetes
Type 2 :Non Insulin dependent Diabetes
Gestational Diabetes
DIABETES CARE COMPONENTS
6. UNDERSTANDING DIABETES - BEHAVOURIAL
DIABETES MELLITUS
Diabetes is a silent killer. Does not harm the
Patient itself. Fatalities due to complications
Est. 5% of population remains undetected
Needs lifestyle control along with medication
Allied issues are
• Foot
• Optha
• Renal
• Cardiac
• ED
Requires specific products / treatment suited to
them
IMPLICATIONS
Need to create awareness
Early diagnosis is important
“Reversal” of diabetes possible
In early and pre diabetes stages
Need for “complete care”
Demand for specific diabetes
related products
7. Disorganized Organized
Centralized
EMR
Continuous
Contact
Personal Brilliance
Process
based
Reactive
Proactive
Sporadic Connect
‘No’ or Paper
Records
DIABETES OPPORTUNITY
CURRENT HEALTHCARE SYSTEM (GAPS) IDEAL SYSTEM (OPPORTUNITY)
8. BEHAVOURIAL CHANGE NEEDED DUE TO CURRENT MINDSET / INFRA
NEED TO ALTER CONSUMER MINDSET TOWARDS BRANDED HEALTHCARE
AWARENESS FAMILIARITY CONSIDERATION PURCHASE LOYALTY
BRAND INVESTMENT (% of revenue)
EXAMPLES OF MINDSET CHANGE IN OTHER INDUSTRIES
COOKING
BRICK & MORTAR
SHOPPING
ON SITE SCHOOLS
/ COLLEGE
ORDERING FOOD
E COMMERCE
DISTANCE
EDUCATION / SHORT
TERM COURSES
LONG TERM PLAY WITH HEAVY INVESTMENT IN MARKETING / ADVERTISING
FOOD
INDUSTRY
SHOPPING
EDUCATION