market research report : medical devices market in india 2013
DESCRIPTION
For the complete report, get in touch with us at : [email protected] Medical devices market is expected to grow at a steady rate in the days to come. Increasing awareness towards healthcare, more budgetary allocation and increase in complex lifestyle disorders is likely to boost the demand of medical devices.TRANSCRIPT
Medical Devices Market IndiaMedical Devices Market – India
April 2013
Executive Summary
Market
Domestic market for medical devices in India was pegged at INR X1 bn in 20‐‐ which is poised to grow to INR X5 bn by 20‐‐
Growing hospital infrastructure and healthcare spending is fostering the need for high‐end devices for accurate and fast treatment
Drivers & Challenges
Drivers: Improving health infrastructure Increasing healthcare spending Changing demographics and growing target consumer group
Challenges: High dependency on imports
Lack of standard regulatory structure
TrendsOutsourcing/Relocating of manufacturing facilities
Increasing lifestyle diseases and therapies Increasing medical tourism in India Growing health insurance market
Increasing demand for refurbished devicesTrends
Increasing joint ventures and tie‐ups
Various exhibitions and trade fairs
GovernmentGovt. bodies and associations such as MoHFW, CDSCO and AIMED are aiming to provide medical d i i I di l i d i di d i
Focus on cost reduction and innovation
Use of plastics in medical devices
Competitive
Government Involvement
devices in India a regulatory structure in order to promote indigenous production CDSCO has laid down registration and license mechanisms to regularize imports of drugs and devices
Major Players
2MEDICAL DEVICES MARKET IN INDIA 2013.PPT
Landscape Company A Company B Company C
•Economic Indicators•Introduction •Market OverviewMarket Overview•Export Import•Distribution Channel•Drivers & Challenges•Drivers & Challenges•Trends•Government InvolvementGovernment BodiesGovernment RegulationsGovernment Initiatives
•Competitive Landscape•Recent Investments•Strategic Recommendations
3MEDICAL DEVICES MARKET IN INDIA 2013.PPT
Strategic Recommendations•Appendix
SAMPLE Economic Indicators (1/3)
INR tn
15 o414.12
GDP at Factor Cost: Quarterly
m2
p1o1
n1
m1
14
13
12
11
n4
m4
o3n3
m3
p2o2n2
Q1
10
Q4Q3Q220‐‐ ‐ ‐‐20‐‐ ‐ ‐‐20‐‐ ‐ ‐‐20‐‐ ‐ ‐‐
Inflation Rate: Monthlyy
0 8
1.0
%
eb
0.2
0.4
0.6
0.8
dca
4PHARMACY RETAIL MARKET IN INDIA 2013.PPT
0.0
Dec 20‐‐ ‐ Jan 20‐‐Nov 20‐‐ ‐ Dec 20‐‐Oct 20‐‐ ‐ Nov 20‐‐Sep 20‐‐ ‐ Oct 20‐‐Aug 20‐‐ ‐ Sep 20‐‐
Medical Devices are classified as per the risk level and their intended use
•Medical devices under Section 3 (b) (iv) of the Drug and Cosmetic Act refers to any instrument, apparatus, machine, appliance implant in vitro reagent or calibrator software material or other similar or related article
Medical Devices – Definition
appliance, implant, in vitro reagent or calibrator, software, material or other similar or related article Intended by manufacturer to be used alone or in combination, for human beings for one or more specific purposes of diagnosis, prevention, monitoring, treatment or alleviation of disease Does not achieve its primary intended action in or on the human body by pharmacological, immunological or metabolic means, but which may be assisted in its intended function by such means
•Medical Devices in India are classified as per their risk levels and intended use and are divided into different classes•Classification is carried out in accordance with Annex IX of Schedule M‐III provided by The Drugs Technical Advisory Board (DTAB)
Class ALow Risk
Class BLow‐moderate Risk
Class CModerate‐high Risk
Class D
•Heart valves
High Risk
• Includes devices such as •Hypodermic needles • Lung ventilator bone •Heart valves, implantable defibrillatorthermometers and
tongue depressors
•Hypodermic needles, suction equipment
• Lung ventilator, bone fixation plate
If a manufacturer desires to reclassify a device to a lower class, they must submit a justification to The Central Licensing Approval Authority (CLAA) for evaluation that the movement to the lesser stringent class will assure
5MEDICAL DEVICES MARKET IN INDIA 2013.PPT
Licensing Approval Authority (CLAA) for evaluation that the movement to the lesser stringent class will assure sufficient safety and effectiveness of the device
Growing population along with a high growth economy will be instrumental in driving demand for medical devices
•The healthcare market in India has huge potential to grow
I di i h t th 1 21 b l
Market Overview (1/3) Market Size : Healthcare in India
6 000
INR unitsA% A5 India is home to more than 1.21 bn people
Basic infrastructural facilities are lacking
•Medical devices market is marked by high value imports of expensive and sophisticated devices
• In terms of technology – high end medical devices 2,000
4,000
6,000 A5A4
A3A2A 1
gy gare primarily found in tier I cities Gradually it is expected that demand in tier II and tier III cities will also rise As economic growth picks up, this transition is expected to be smooth
0
20‐‐e20‐‐e20‐‐e20‐‐e20‐‐
Market Size: Medical Devices• The various stakeholders in the medical devices industry include manufacturers, distributors, hospitals chains, pathology labs and diagnostic centers
d h d lf d l400
500
INR units
X3
X% X5X4
X2X1• In India, Town M has positioned itself as a medical
devices hub Proximity to City N and having a large pool of technical staffhelps Town M to maintain its edge 0
100
200
300 X1
6MEDICAL DEVICES MARKET IN INDIA 2013.PPT
20‐‐e20‐‐e20‐‐e20‐‐e20‐‐
Segments in the Market (1/2)
60
INR units
I6
Imaging Devices Market Size & Growth• Products in this segment include ultrasound scanners, CT scanners, x‐ray equipment, MRI scanners, PET
d fl
20
40
60 I% I6I5
I4I3
I2I1
scanners, mammograms and fluoroscopes
• At present, market for imaging devices is the largest among all segments in the medical devices industry
•Major players in this segment include M, N, O, P and Q
Market Size & Growth
0
20‐‐e20‐‐e20‐‐e20‐‐e20‐‐20‐‐
Patient Monitoring
20
30
INR units
P6P% P5P4
• Products in this segment include ECG and EEG monitors, surgical concentrators, multipara monitors, pulse oxymeters
• Currently, it is the second largest segment in the
0
10
20 P4P3
P2P1medical devices market and is growing at an impressive rate of P%
•Companies operating in this segment include P, Q, R and S
7MEDICAL DEVICES MARKET IN INDIA 2013.PPT
20‐‐e20‐‐e 20‐‐e20‐‐e20‐‐20‐‐
Drivers & Challenges – Summary
Drivers
Improving health infrastructure
Increasing healthcare spending
Changing demographics and growing target consumer group
I i lif l di d
Challenges
High dependency on exports
Increasing lifestyle diseases and therapies
Increasing medical tourism in India
Lack of standard regulatory structure
Growing health insurance market
8MEDICAL DEVICES MARKET IN INDIA 2013.PPT
SAMPLE Key Trends
Outsourcing/Relocation of manufacturing facilities
Increasing joint ventures and tie‐ups
`
Various exhibitions and trade fairsKey
Trends
Increasing demand for refurbished devices
Focus on cost reduction and innovation
9MEDICAL DEVICES MARKET IN INDIA 2013.PPT
Use of plastics in medical devices
CDSCO have highlighted the areas of improvement for the medical devices market
•It is the authority regulating medical devices in India under Ministry of Health and Family Welfare (MoHFW)
Central Drug Standard Control Organization (CDSCO) The Central Licensing Approval Authority (CLAA)
Serves as the main regulatory body for medical devices that will classify medical d i d f t ki• It lays down rules, standards and approves import and
manufacturing of drugs, diagnostics, devices, and cosmetics• Establishes standards and regulations for drugs, blood and blood products, intravenous fluids, and vaccines
•Companies must register all their products with the d l f
devices, and any manufacturer seeking a less stringent classification must justify it to
the CLAA
p g pCDSCO before its products can be introduced into the Indian market
• It issued a Gazette Notification S.O. 1468 (2005) that declared 10 categories of sterile devices to be considered
Act and Regulatory status of CDSCO
The Drugs & Cosmetics Act (DCA)
as drugs under Section 3 (b) (iv) of the Drug and Cosmetic Act (DCA)
• In late 2008, Drugs Controller General of India (DCGI) prepared an expanded list of medical devices that require
Regulates the import, manufacture, sale, distribution of 10 medical devices classified as drugs and also provides licenses which are compulsory for the importers and
manufacturers to deal in the said devicesregistration• The list now includes over 160 medical devices
•Currently working on a road map to include current status review as well as guiding principles of medical devices and a regulatory process implementation phase
CLAA has also adopted and recognized BIS 15575 or its revisions & ISO 13485 in respect of the
specifications to be followed for quality in order for the manufacturer to demonstrate conformity with
10MEDICAL DEVICES MARKET IN INDIA 2013.PPT
devices and a regulatory process implementation phase to make it an all‐inclusive process
the manufacturer to demonstrate conformity with the relevant regulatory requirements
Competitive Benchmarking (2/5)
Key Ratios of Major 3 Companies – Operational Basis (FY 2012) (1/3)
6
% Net MarginOperating Margin
‐0.03
4.08
‐0.04‐0.04
1.85
‐2
0
2
4
6
‐3.44‐4
2
Company CCompany BCompany A
• xx
11MEDICAL DEVICES MARKET IN INDIA 2013.PPT
Public: Domestic Company – Player A (1/4)
Offices and Centres – India Company Information
Corporate Address xx
Tel No. xx
Fax No. xx
Website xx
Year of Incorporation xx
Ti k S b lTicker Symbol xx
Stock Exchange xx
Products and Services
Mumbai
Key People
Name Designation
Category Products/Services
Domestic Appliances xx
Head Office
Lighting Products xx
12
Note: Product list is not exhaustive
MICROWAVE OVENS MARKET IN INDIA 2013.PPT
SAMPLE i i l S h K i
Public: Domestic Company – Player A (2/4)
Financial Snapshot Key Ratios
Net Profit / LossTotal Income
27,565.740,000 1,50022,379.4
INR units INR units
31,123.3
Particulars y‐o‐y change (2012‐11)
2012 2011 2010 2009
Profitability RatiosOperating Margin ‐1.37 7.36% 8.73% 10.20% 10.15%
0
20,000
0
500
1,000
20‐‐
17,755.6
20‐‐ 20‐‐20‐‐
Net Margin ‐1.43 3.79% 5.22% 5.23% 5.02%
Profit Before Tax Margin ‐2.28 5.65% 7.93% 8.94% 7.87%
Return on Equity ‐6.69 16.84% 23.53% 23.69% 36.38%
Return on Capital Employed ‐5.65 30.15% 35.80% 41.23% 55.25%
Return on Working Capital ‐6.19 99.01% 105.20% 56.56% 95.34%
Return on Assets ‐1.89 11.74% 13.63% 16.90% 17.31%
Financial Summary
• The company earned a net profit of INR 1,178.8 mn in FY 2012, as compared to net profit of INR 1,437.9 mn in FY 2011
• The company reported total income of INR 31,123.3 mn in FY 2012 registering an increase of 12 9 per cent over FY 2011
Return on Fixed Assets ‐35.06 122.51% 157.57% 226.85% 185.65%
Cost RatiosOperating costs (% of Sales) 1.39 92.61% 91.22% 89.76% 89.81%
Administration costs (% of Sales)
1.22 13.04% 11.82% 12.36% 12.06%
Interest costs (% of Sales) 0.61 1.92% 1.32% 1.66% 2.33%2012, registering an increase of 12.9 per cent over FY 2011
• The company earned an operating margin of 7.36 per cent in FY 2012 a decrease of 1.37 percentage points over FY 2011
• The company reported debt to equity ratio of 0.30 in FY 2012, an increase of 36.04 per cent over FY 2011
(% )
Liquidity RatiosCurrent Ratio ‐1.25% 1.19 1.21 1.51 1.26
Cash Ratio 5.17% 0.08 0.08 0.12 0.12
Leverage RatiosDebt to Equity Ratio 36.04% 0.30 0.22 0.31 0.88
D b C i l R i
Indicators Value (21/01/2013)Market Capitalization (INR) xxTotal Enterprise Value (INR) xxEPS (INR)
Key Financial Performance Indicators Debt to Capital Ratio 27.74% 0.23 0.18 0.23 0.47
Interest Coverage Ratio ‐42.39% 3.84 6.67 6.16 4.37
Efficiency RatiosFixed Asset Turnover ‐7.66% 16.57 17.95 22.15 18.22
Asset Turnover 2.28% 1.59 1.55 1.65 1.70
Current Asset Turnover 5.04% 2.18 2.07 1.86 1.96
13
EPS (INR) xxPE Ratio (Absolute)‐09/01/2013 xx
Improved Decline
Working Capital Turnover 11.77% 13.39 11.98 5.52 9.36
Capital Employed Turnover ‐7.31% 3.41 3.68 3.45 3.84
MICROWAVE OVENS MARKET IN INDIA 2013.PPT
SAMPLE Public: Domestic Company – Player A (3/4)
Key Business Segments Key Geographic Segments
100%
Others
Lighting
Engineering & Projects
Consumer Durables
100%
India
India has been the only
29.6% 33.1% 30.3% 26.8%
100%
50%
0%24.7%
48.4%
23.0%
46.6%42.8%42.7%
0%
50%
100%
100%
India has been the only revenue generating
segment for ‐‐ during 20‐‐
Key Recent Developments
0%
20‐‐20‐‐20‐‐20‐‐
0%
20‐‐
Description News
Overview • xx
Microwave Ovens Range • xx
14
Note: Business segments and Geographic segments are based on revenues
MICROWAVE OVENS MARKET IN INDIA 2013.PPT
SAMPLE Public: Domestic Company – Player A – SWOT Analysis (4/4)
• xx• xx
S WS W
TO• xx
• xx
15MICROWAVE OVENS MARKET IN INDIA 2013.PPT
SAMPLE Appendix
Ratio Calculations
Operating Margin (Operating Income/Revenues)*100
Ratio Calculations
Current RatioCurrent Assets / Current Liabilities
Net Margin (Net Profit / Revenues) *100
Profit Before Tax Margin (Income Before Tax / Revenues *100
(N I / Sh h ld
Cash Ratio{(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
Debt to Equity Total Liabilities / Shareholders E it
Return on Equity (ROE) (Net Income / Shareholders Equity)*100
Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100
q yEquity
Debt to Capital Ratio{Total Debt / (Shareholders Equity + Total Debt)}
Interest Coverage Ratio EBIT / Interest Expense
Return on Working Capital (EBIT / Working Capital) *100
Return on Assets (EBIT / Total Assets)*100
Return on Fixed Assets (EBIT / Fixed Assets) *100
Fixed Asset Turnover Sales / Fixed Assets
Asset Turnover Sales / Total Assets
Operating Costs (% of Sales) (Operating Expenses / Sales) *100
Administration Costs (% of Sales)
(Administrative Expenses / Sales) *100
Current Asset Turnover Sales / Current Assets
Working Capital Turnover Sales / Working Capital
Sales / (Shareholders Equity +
16MEDICAL DEVICES MARKET IN INDIA 2013.PPT
Interest Costs (% of Sales) (Interest Expenses / Sales) *100 Capital Employed Turnover Sales / (Shareholders Equity + Total Debt)
Thank you for the attentionThe Medical Devices Market – India report is part of Research on India’s Healthcare Series.For more detailed information or customized research requirements please contact:
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17MEDICAL DEVICES MARKET IN INDIA 2013.PPT
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