Market Research Report : Telemedicine in India 2012

28
   July 2012

Transcript of Market Research Report : Telemedicine in India 2012

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 – 

July 2012

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Executive Summary

Market

The Indian telemedicine market is currently valued at INR xx mn and is expected to attain a CAGRof 20% to reach INR xx mn by 2015

The market has received plenty of government attention which in turn has inflicted positive

growth rate

Point to Point

With the continual improvement in the field of telecommunications, the market will reach a state

of full swing in the ensuing years

e eme c ne 

Technology Point to Multi Point

Multi Point to Multi Point

Drivers and 

Challenges

Favorable demographics

Continual improvement in connectivity

Shortage of  healthcare professionals in rural areas

Increasin a ein o ulation

Weak ecosystem for stake holders

Implementation Issues

Competition

Key Telemedicine Players

Teleradiology Solutions Televital India

 

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Religare 

Technologies Apollo 

Telehealth 

Services

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•Market Introduction

•Market Overview

•SWOT Analysis

•Telemedicine Technology

•Major Application Areas

•Government Initiatives

•Drivers and Challenges

•Strategic Insights  – New Entrants

•Major P ayers 

•Strategic Recommendations

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• ppen x 

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SAMPLE 

Telemedicine ‐ Summary

Communication 

Technology

Biomedical 

Engineering

Telemedicine

Information 

TechnologyMedical Science

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Telemedicine is gaining a robust growth rate and is 

expected gain further traction in the years to come

• Indian telemedicine market is currently at its nascent stage, however it has tremendous potential to unfold in the 

years to come 

Telemedicine Market

‐Overview

•The market has been constantly under the priority sectors of  the government as a result of  which plenty of  initiatives 

have been taken so far which in turn has infused tremendous growth opportunities 

•The overall healthcare industry shells out an amount close to INR 47 bn on a yearly basis, out of  which telemedicine 

accounts for approximately xx% 

• Primarily, a public private partnership (PPP) is considered to be the most appropriate business model for the Indian 

telemedicine market 

In the

 business

 model,

 infrastructure

 support

 can

 be

 provided

 by

 GoI,

 whereas

 the

 private

 operators

 can

 cater

 to

 the

 healthcare

 human

 

resource requirements

INR mn

Telemedicine  – Market Size & Growth

a

b

c

xx

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0

2015e2014e2013e2012e2011

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SAMPLE 

Telemedicine Market  – Snapshot (1/2)

Prime Reasons for 

Growth

Increasing Awareness

Government Initiatives 

XXXXX

Urban Market 

Scenario

Urban market share is very small

YYYYYY

XXXXX

Average Setup Cost Primarily ranges between INR 0.05 mn  – INR 2 mn

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SAMPLE 

Telemedicine Market ‐ SWOT Analysis Summary 

•Favorable Demographics

Strength

•Lack of Technolo ical Awareness

Weakness

•Government Initiatives

•XXXX

•YYYY

 

•XXX

•YYYY

SWOT Analysis

Opportunity Threat

•Arrival of  4G Spectrum•Lack of  Confidence

•XXXXX

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SAMPLE 

Types of  telemedicine is basically distinguished on the basis 

of  the participants involved

Point to Point Point to Multi Point

Types of 

 Telemedicine

Multi Point to Multi 

Point

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SAMPLE 

Point to Point Telemedicine  – Framework

a en  n oc ors  n

Digital  Camera

Doctor’s Chamber 

Scanner 

Switch Switch

Webcam Display  Unit 

Display  Unit 

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The Framework  depicted  is indicative

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SAMPLE 

Telemedicine has find its implementation across a wide 

range of  areas 

Tele Consultation

Used  to  facilitate 

Tele 

Diagnosis

communication, so as to 

 provide 

 patients 

and  

local  

doctors with the initial  lines of  

treatment  

Telemedicine 

Implementation

XXXX

YYYYY Primarily  implemented 

 to

 

Tele Training

 

including training and  

guidance to doctors and  

 paramedics

ZZZZZZ

 

 for  intensive and  emergency  situations

Used  to  provide support  

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services in

 case

 of 

 any 

 disaster 

 

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SAMPLE 

Government Initiatives ‐ Summary

Department of  Information 

Technology

Indian Space Research 

Organization 

Initiatives 

Ministry of  Health and Family 

WelfareMinistry of  External Affairs

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SAMPLE 

Department of  Information Technology (DIT)

• Eyeing the

 tremendous

 growth

 prospects

 in

 telemedicine,

 the

 Department

 of 

 Information

 Technology

 (DIT)

 has

 played

 a 

crucial role in the upliftment of  the sector 

• So far the organization has taken certain concrete initiatives including development of  technology, launching pilot 

schemes and standardization of  the overall market in India 

• Further to standardize telemedicine services, DIT has drafted the ‘Recommended Guidelines & Standrads for Practice of  

Telemedicine in India’

• Framework used to define the guidelines and standrads can be illustrated as below:

Telemedicine Service

 Providers Technology

 Providers

Technology

XXXXX Information Exchange Standards 

Security 

AAAAAAA

Guidelines and Standards 

Telemedicine Consultation

Protocols

XXXXXX

Primary

Secondary

Tertiary

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Process Guidelines System Requirements

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SAMPLE 

Indian Space Research Organization 

•ISRO as

 a government

 body

 has

 been

 active

 towards

 the

 upliftment

 of 

 Indian

 telemedicine

 market

 since

 its

 inception

 

Primarily, these initiatives have been started under the GRAMSAT programme 

•Some of  the major steps taken for the telemedicine market includes the following:

Linking of  Indian National Satellite (INSAT) to rural areas including Jammu, Kashmir & Ladakh, Andaman, Lakshadweep and North

Eastern state hospitals and health centres

It is

 also

 engaged

 in

 providing

 seamless

 connectivity

 between

 remote/

 rural

 hospitals

 and

 super

 specialty

 hospitals

 so

 as

 to

 facilitate

 tele

 

consultation, treatment & training, Continuing Medical Education (CME) and mobile telemedicine units for rural areas 

XX Hospitals YYY

ISRO 

Telemedicine 

Network

A Su er S ecialt Hos itals

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SAMPLE 

Ministry of  Health and Family Welfare (1/2) 

So 

far, 

the 

Ministry 

of  

Health 

and 

Family 

Welfare 

(MoH&FW) 

has 

taken 

an 

array 

of  

initiatives 

for 

the 

Indian 

telemedicine market, some of  which can be , mentioned as below:

Joined hands

 with

 ISRO

 for

 the

 implementation

 of 

 Disease

 Surveillance

 Programme

Establishing the

 OncoNET

 India

 network,

 which

 connects

 25

 regional

 

 –  

cancer treatment facilities and facilitate cancer prevention and research 

activities 

Has approved tele‐ophthalmology project to provide eye care specialty 

services in the rural areas of  Punjab, Uttar Pradesh, West Bengal, with 

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the 

aide 

of  

mobile 

vans

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SAMPLE 

Ministry of  External Affairs 

SAARC 

Telemedicine 

Network

•Has initiate   a pi ot project w erein one or two  ospita s  rom eac   o  t e SAARC nations  ave  een 

connected to super specialty hospitals in India

• Super specialty hospitals identified for this project includes AIIMS, SGPGIMS, PGIMER and CARE hospital 

•The  ro ect is ex ected to brin   forth enhanced usa e of  telemedicine at re ional levels and interconnect it 

with other necessary areas including education, business process outsourcing and mass communication

Pam‐African e network Project

•MEA has  joined hands with Telecommunications Consultants India Ltd. (TCIL)  so as to establish a VSAT based 

e e‐me c ne

 an

 e e

‐e uca on

 mar e

 or

 r can

 coun r es

 n 

na ons o

 e 

r can 

n on 

•For this purpose, 10 super specialty hospitals have been identified to cater to the tele‐health service for 53 

African hospitals 

• This initiative will push the demands in the Indian market significantly 

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SAMPLE 

Drivers & Challenges  – Summary 

Drivers

Favorable demographics

Challenges

Weak 

ecosystem 

for 

stake 

holders

 

connectivity

Shortage of  healthcare professionals in 

rural areas

Implementation Issues

Increasing ageing population

16TELEMEDICINE MARKET IN INDIA 2012.PPT

I t i th fi ld f ti it ill t j

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Improvement in

 the

 field

 of 

 connectivity

 will

 act

 as

 a major

 

boon for the overall market in India

•The overall concept of  telemedicine is majorly dependant on the connectivity medium available

• Generall , internet and satellite connections are the  rime modes to interconnect a remote 

Continual improvement

 in

 connectivity Impact

SAMPLE 

health centre to the concerned healthcare authority 

• Currently, the

 overall

 connectivity

 (both

 internet

 as

 well

 as

 satellite)

 in

 India

 has

 gained

 

significant momentum and is expected to grow further in the years to come, thereby providing 

• Additionally, improvement in connections will improve the standard and quality of  services, 

thereby gaining trust and confidence of  end users 

Subscriber Base mn

a

Urban SubscribersRural Subscribers

Total Internet Subscribers  – India

b

c

d

e

17TELEMEDICINE MARKET IN INDIA 2012.PPT

0

2015e2014e2013e2012e20112010

N l i th k t l l b fit f th l

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SAMPLE 

New players

 in

 the

 market

 can

 largely

 benefit

 from

 the

 rural

 

market in India 

•The healthcare

 infrastructure

 prevailing,

 especially

 in

 the

 rural

 parts

 of 

 India

 is

 weak,

 unreliable

 and

 faces

 acute

 

shortage of  proper healthcare professionals

• It is this opportunity gap which can be effectively targeted by new entrants in the market can establish a stronger 

• Below listed are the details of  health infrastructure prevailing in rural India:

Rural Healthcare 

Infrastructure 

Sub Centres Primary Health Centres Community Health Centres

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SAMPLE 

Rural Health Infrastructure ‐ Coverage

Average 

Rural 

PopulationCategory Norms Present coverage

Sub Centre xxx Xxx

Primary Health Centre Xxx Xxx 

Community Health

 Centre

 Xxx

 Xxx

verage  ura  rea

Category Present coverage (Sq. Km)

Sub Centre Xxx

Primary Hea t   Centre Xxx

Community Health Centre  Xxx 

Avera e No. of Villa es 

Category Present coverage

Sub Centre Xxx 

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Community Health Centre  Xxx 

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SAMPLE 

Rural Infrastructure  – In Position (x/x)

State/ UT

Population (2011) Health Infrastructure (Established 2007‐12) Health Infrastructure (Functional)

Total  Rural X Y Z X Y Z

Xxx 84665533 56311788 12522 1624 281 12522 1624 281

xxx 1382611 1069165 286 97 48 286 97 48

xxx 31169272 26780516 4604 938 108 4604 938 108

xxx 103804637 92075028 9696 1863 70 9696 1863 70

xxx 25540196 19603658 5076 741 148 5076 741 148

xxx 1457723 551414 175 19 5 175 19 5

xxx 60383628 34670817 7274 1123 305 7274 1123 305

xxx 25353081 16531493 2508 444 107 2508 444 107

xxx 6856509 6167805 2067 453 76 2067 453 76

xxx 12548926 9134820 1907 397 83 1907 397 83

xxx 32966238 25036946 3958 330 188 3958 330 188

xxx 61130704 37552529 8870 2310 180 8870 2310 180

xxx 33387677 17455506 4575 809 224 4575 809 224

xxx 72597565 52537899 8869 1156 333 8869 1156 333

xxx 112372972 61545441 10580 1809 365 10580 1809 365

xxx 2721756 1899624 420 80 16 420 80 16

20TELEMEDICINE MARKET IN INDIA 2012.PPT

xxx 2964007 2368971 405 109 29 405 109 29

xxx 1091014 529037 370 57 9 370 57 9

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Major Public Companies ‐ Summary

2,500

3,000

Net Profit/Loss

Size of  the Bubble represents Market Capitalization in INR bn

1,500

2,000

500

1,000

bbb

 

‐500

0 xxx

ccc

‐1,000

‐2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000

Total income

cccbbbaaa

21TELEMEDICINE MARKET IN INDIA 2012.PPT

Note:  All   figures are in INR mn and  are based  on the latest   financials available

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SAMPLE 

Public: Foreign Company  – Player A (1/3)

Company Information Offices and Centres  – India 

Corporate Address

Tel No.

Fax No.

Website

Year of  Incorporation

Gurgaon

Ticker Symbol

Stock ExchangeIndia Office

Key People

 

Category Products/Services

ame es gna on

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Note: The list  of   products and  services is not  exhaustive

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SAMPLE 

Public: Foreign Company  – Player A (2/3)

Financial Snapshot Key Ratios

Net Profit/LossTotal Income

79418.1

54353.852366.160000

80000

6000

8000

Profit

INR mn

Revenue

INR mnParticulars 

y‐o‐y change 

(2011‐10)2011 2010 2009 2008

Profitability  Ratios

Operating Margin 2.83 11.33% 8.50% 8.96% 10.49%

.

0

20000

40000

0

2000

4000

2011201020092008

Net Margin 3.46 9.07% 5.61% 5.16% 7.03%

Profit Before Tax Margin 3.08 9.84% 6.75% 6.99% 9.06%

Return on Equity 4.09 9.91% 5.82% 4.73% 7.82%

Return on Capital Employed 3.20 11.41% 8.21% 7.58% 10.62%

Return on Working Capital 10.44 22.85% 12.41% 10.63% 19.73%

Return on Assets 2.94 7.36% 4.42% 3.60% 5.92%

Financial Summary 

• The company incurred a net profit of  INR 7207 mn in FY 2011, as 

compared to net profit of  INR 3051.4 mn in FY 2010

• The company reported total income of   INR 79418.1 mn in FY 2011, 

Return on Fixed Assets 42.43 104.43% 62.01% 61.39% 97.93%

Cost  Ratios

Operating costs (% of  Sales) ‐2.83 88.67% 91.50% 91.04% 89.43%

Administration costs (% of  

Sales) ‐3.00 34.56% 37.57% 35.05% 34.01%

Interest costs % of Sales ‐0.01 0.00% 0.01% 0.00% 0.00%  .  

• The company earned an operating margin of  11.33 per cent in FY 

2011, an increase of  2.83 percentage points over FY 2010

• The company reported debt to equity ratio of  0.35 in FY 2011, a 

decrease of  9.30 per cent over FY 2010

 

Liquidity  Ratios

Current Ratio ‐9.39% 2.65 2.93 2.93 2.79

Cash Ratio ‐12.26% 1.65 1.88 1.93 1.53

Leverage Ratios

Debt to Equity Ratio 9.30% 0.35 0.32 0.32 0.32

Key Financial Performance Indicators

Indicators Value (dd/mm/2012)

Market Capitalization (INR mn)* 102732.3

Total Enterprise Value (INR mn)* 71473.4

Debt to Capital Ratio N.A. 0.00 0.00 0.00 0.00

Interest Coverage Ratio N.A. N.A. 624.33 N.A. N.A.

Efficiency  Ratios

Fixed Asset Turnover 4.14% 11.50 11.04 11.90 13.83

Asset Turnover 2.97% 0.81 0.79 0.70 0.84

Current Asset Turnover 7.76% 1.57 1.46 1.36 1.79

23TELEMEDICINE MARKET IN INDIA 2012.PPT

  0.65

PE Ratio

 (Absolute) 16.08

Improved Decline

Working 

Capital 

Turnover13.88% 2.52 2.21 2.06 2.79

Capital Employed Turnover 5.27% 1.09 1.04 0.92 1.10

* Figures are taken as on 2nd  of   Jul, 2012

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SAMPLE 

Public: Foreign Company  – Player A (3/3)

Key Business Segments Key Geographic Segments

79,375

cbaCommunications Equipment

50%

26% 25% 25% 25%50%

24%

51%

21%

54%

20%

56%

17%

57%

 

operating in the 

communications equipment 

segment since

 2008

Key Information

2011 2011201020092008

Description  Details

Overview •xxx

24TELEMEDICINE MARKET IN INDIA 2012.PPT

Note: Business Segments and  Geographic Segments are based  on total  revenues

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Major Private Companies ‐ Summary

1 500

2,000

Net Profit/Loss

Size of  the Bubble represents Total Assets in INR mn

1,000

AAA

SAMPLE 0

DDD

CCCBBB

‐1,000

‐500

EEE

‐1,500

‐2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000

Total Income

EEEDDDCCCBBBAAA

25TELEMEDICINE MARKET IN INDIA 2012.PPT

Note:  All   figures are in INR mn and  are based  on the latest   financials available

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SAMPLE 

Private: Domestic Company  – Player B (1/2)

Company Information Offices and Centres  – India 

Corporate Address

Tel No.

Fax No.

Website

Year of  Incorporation Hyderabad Head Office

Key People

 

Category Products/Services

ame es gna on

26TELEMEDICINE MARKET IN INDIA 2012.PPT

Note: The list  of   products and  services is not  exhaustive

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SAMPLE 

Private: Domestic Company  – Player B (2/2)

Business Highlights

Description  News

Overview • xxx

Services • xxx

27TELEMEDICINE MARKET IN INDIA 2012.PPT

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