Transcript Indian Medical Device Industry

Medical Devices
Medical Device Market Share
Current Valuation of Indian Medical Electronics Industry -
2.5 Bn $
Valuation of Indian Medical Electronics Industry by 2020
5.0 Bn $
Indian Medical Electronics CAGR
17%
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Asia Pacific countries excluding Japan and China are growing at a much
faster pace
Electronic equipment production growth rates per year
15%
10%
7.50%
5%
3.60%
2.30%
1.80%
0%
-5%
2012
2013
North America
2014
Europe
2015
Japan
2016
Other APAC
China
2017
In addition, on a manufacturing cost competitiveness index, India has amongst the lowest direct manufacturing
costs of the world’s 25 top exporting economies
Direct Manufacturing Cost Index relative to India among Asian countries
127
Japan
118
South Korea
113
Russia
110
China
104
Thailand
100
India
While India’s wage growth nearly matched the productivity growth from 2004 – 2014, China witnessed a 4 times rise
in wages compared to productivity over the same period
India – The perfect recipe for growth
On a manufacturing cost competitiveness index, India has amongst the lowest direct manufacturing costs of the
world’s 25 top exporting economies
Direct Manufacturing Cost Index relative to India among Asian
countries
125
100
75
127
50
118
113
110
104
100
25
0
Japan
South Korea
Russia
China
Thailand
India
While India’s wage growth nearly matched the productivity growth from 2004 – 2014, China witnessed a 4 times rise
in wages compared to productivity over the same period
300%
Average household income
increase over the next decade
360%
Rise in consumption by 2020
With rising household incomes and consumption patterns, coupled with lowest direct manufacturing costs,
India is at the cusp of a manufacturing revolution
BCG - Global Manufacturing Cost - Competitiveness Index
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Influencing Factors- Indian Medical Device Industry
Technology Mismatch
Economics based factor
• 75% of devices are currently imported
• There is a mismatch between design/
technology of some devices and clinical
conditions
• As per the world bank estimate India spends
only 1 % of its overall GDP on Public health
• The onus is on Private sector to step in and
expand
Regulatory environment
Local market Sentiments
• Lack of awareness amongst the Indians on
disease management
• Lack of infrastructure for preventive measures
• Poor local economy
Health care providers
• Corporate style hospital chains providing
excellent service
• Imperative for device manufacturers to identify
right service providers which cater to target
population
Medical Device
Industry
• Medical devices in India are regulated by
CDSCO and follows Drugs and Cosmetic rule
with lot of ambiguity
Reimbursement policies
• Health insurance schemes by Central / State
governments for poor at affiliated hospitals
• Only 10% are benefited from the state
sponsored insurance schemes
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Growth Strategy – Indian Medical Device Market
• Indian Medical Device Market is Unique and dynamic in nature, mainly influenced by local sentiments and challenges
• There are strategies that the device manufacturers can adopt to maximize their market share
Local Partnerships
• Indigenous technology firms have a better understanding of the market and regulations
• Local talent is aware about the tax duties and import implications
Adopt Technology
• Advertisement of medical devices is not allowed in India and depends on B2B sales with Medical
reps visiting hospitals
• Digital Marketing platforms such as PDAs, Tablets etc should be used to reach the prospective
customer
Add value to
stakeholders
• Indian consumers are willing to pay a premium for quality medical devices
• It is imperative that Medical device manufacturers provide the same quality and value added
services as in western countries to Indian consumers
Regulators in India will play a major role in expansion and growth of Indian Medical Device Market targeted at 5 Bn$ by
2020
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Major Players - Indian Medical Device Industry
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