Medical Diagnostics India - MarketResearch · MEDICAL DIAGNOSTICS MARKET IN INDIA 2014.PPT 2...

Medical Diagnostics – India

October 2014

2 MEDICAL DIAGNOSTICS MARKET IN INDIA 2014.PPT

Executive Summary

Market Overview

Drivers & Challenges

Rules and Regulations

Competition

The medical diagnostics market in India is projected to grow at a steady rate of about 15% and is likely to reach INR 401.9bn by 2018 from INR 200 bn in 2013

Diagnostic market is characterized with presence of large number of labs in the unorganized sector which is not accredited.

Clinical Establishment Act 2010

Importance of accreditation

National Accreditation Board for Testing and Calibration Laboratories (NABL)

Trends More Services Innovation Telemedicine

Challenges: Lack of accreditation/certification of

diagnostic centres

Import tariff

Manpower woes

Drivers: Increase in lifestyle-related diseases

Changing demographics

Rapid growth of India as a destination for

medical tourism

Increasing penetration of medical insurance

Rising PE/VC investments

Major Players

SRL Diagnostics Pvt. Ltd. Thyrocare Diagnostics Pvt. Ltd. Dr. Lal Path Lab

Public Private Partnerships Tie ups

3

•Macro Economic Indicators

•Introduction

•Market Overview

•Drivers & Challenges

•Trends

•Government Regulations

•Competitive Landscape

•Strategic Recommendations

•Appendix

MEDICAL DIAGNOSTICS MARKET IN INDIA 2014.PPT

4

Economic Indicators (1/3)

11

12

13

14

15

b2

a2

Q1

d1 c1

b1

a1

Q4

c4

b4

a4

Q3

c3

b3

a3

Q2

d2 c2

INR tn

2013-14 2012-13 2011-12 2010-11

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

-2

-1

0

1

2

q

Jul 2013 - Aug 2013

p

%

Nov 2013 - Dec 2013

t

Oct 2013 - Nov 2013

s

Sep 2013 - Oct 2013

r

Aug 2013 - Sep 2013


5

SAMPLE Boom in the healthcare sector is fuelling growth of the diagnostics and associated pathological laboratories

Indian Diagnostic Market

Diagnostic tests are available for most of the diseases but there is an urgent need for reliable diagnostics for many communicable diseases such as tuberculosis, malaria, dengue, hepatitis B and C

• Indian diagnostics market has been experiencing immense progress for the last few years

Technological advancements and higher efficiency systems have taken the sector to greater heights

Diagnostic medical imaging and diagnostic lab services are growing at a fast pace due to growing demand for automated diagnostics

Equipment Reagents Services


Unorganized

Organized

In Vitro Diagnostics market in India consisting of both diagnostics and reagents, is largely dominated by the global IVD

companies with very few Indian companies

6

Diagnostics labs are witnessing healthy growth on the backdrop of huge expansion & improvement in technology

• Better physician knowledge coupled with availability of better technology in the field of diagnostics is causing the Indian market to grow

• Tier II and Tier III cities are in need of improved healthcare infrastructure which is an opportunity for large corporate players

Rise in lifestyle diseases has caused medical diagnostics market to grow immensely in these cities

• Approximately x1 labs are present in the unorganized sector

Market Overview Diagnostic Market Size & Growth

X%

Y%

Diagnostic Market- Segmentation (2014) Diagnostic Market- Split (2014)

X1%

X2%

Segment 2 Segment 1

India has more than y1 labs


0

20

40

60e x%

20--e

f

20--e

INR bn

20--e

d

20--e

c

20--e

b

20--

a

Segment 2 Segment 1

7

Drivers & Challenges

Drivers

Increase in lifestyle-related diseases

Changing demographics

Rapid growth of India as a destination for medical tourism

Increasing penetration of medical insurance

Rising PE/VC investments

Challenges

Lack of accreditation/certification of diagnostic centres

Import tariff

Manpower woes


8

Trends – Summary

`

More Services

Innovation

Public Private Partnership

Telemedicine Trends

Tie-ups


9

SAMPLE Porter’s Five Forces Analysis

Competitive Rivalry

Bargaining Power of Suppliers

Bargaining Power of Buyers

Threat of Substitutes

Threat of New Entrants

Impact x

Impact x

Impact x

Impact x

Impact x


10

SAMPLE Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3)

Competitive Benchmarking (2/5)

0

10

20

30

40

%

Company C

b3 a3

Company B

b2 a2

Company A

b1

a1

Operating Margin Net Margin

• Company A recorded operating margin of x1%, higher than that of Company B which recorded operating margin of y2% but lower than that of Company C which recorded operating margin of z3%

• Net margin for Company A , Company B and Company C are a1%, b2% and c3% respectively, wherein Company A has the highest net margin among these three companies


11

SAMPLE Public: Domestic Company – Company 1 (1/5)

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

Name Designation

Person 1 MD and Executive Director

Person 2 VC and VC of Share Transfer Committee

Person 3 Director

Person 4 Director

Head Office Mumbai

Category Products/Services


12

SAMPLE Financial Snapshot Key Ratios

Financial Summary

• The company earned a net profit of INR x1 mn in FY 2013, as compared to net profit of INR x2 mn in FY 2012

• The company reported total income of INR y1 mn in FY 2013, registering an increase of y2% over FY 2012

• The company earned an operating margin of z1% in FY 2013, an increase of z2percentage points over FY 2012

• The company reported debt to equity ratio of a1 in FY 2013, an increase of a3% over FY 2012

Key Financial Performance Indicators

Indicators Value (20/03/2014)

Particulars y-o-y change

(2013-12) 2013 2012 2011 2010

Profitability Ratios Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Improved Decline

Net Profit/Loss Total Income

e

d

c

b

a

s

r

q

p

2013

a4

z4

2012

a3

z3

2011

a2

z2

2010

a1

z1

Public: Domestic Company – Company 1 (2/5)


13

SAMPLE Public: Domestic Company – Company 1 (3/5) Key Business Segments Key Geographic Segments

A%

B%

C%

2013

b4%

2012

b3%

2011

b2%

2010

b1%

a1% C%

B%

A%

2010

y1%

x1%

2013

x4%

2012

x3%

2011

x2%

Region 2 Region 1

Business Highlights

Segment 2 Segment 1

Description News

Overview • The company has operations in Country A, Country B and Country C that offers treatment for acute and

chronic diseases in primary, secondary and tertiary care sectors

Services

• Specializes in 50 specialties comprising cardiac sciences, oncology, radiology and imaging, gastroenterology, neurosciences, orthopedics, critical care services and in minimally invasive surgeries and transplantation

• Operates retail pharmacy outlets all across the country


14

SAMPLE

T O

W S

Public: Domestic Company – Company 1 – SWOT Analysis (5/5)


15

SAMPLE Private: Domestic Company – Company 2 (1/5)

Key People

Products and Services

Company Information Offices and Centres – India

Name Designation

Person 1 Director

Person 2 Director

Person 3 Director

Person 4 Director

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation Head Office

Category Products/Services

Ready Meals

Instant Mixes

Others

Mumbai


16

SAMPLE Private: Domestic Company – Company 2 (2/5)

Shareholders of the Company Ownership Structure

Name No. of Shares held

23.6%57.4%

19.0%

Segment

Segment

Segment


17

SAMPLE Financial Snapshot Key Ratios

Particulars y-o-y change

(2013-12) 2013 2012 2011 2010

Profitability Ratios Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Private: Domestic Company – Company 2 (3/5)

Improved Decline

Financial Summary

• The company earned a net profit of INR x1 mn in FY 2011, as

compared to net profit of INR x2 mn in FY 2010

• The company reported total income of INR x3 mn in FY 2011,

registering an increase of x4% over FY 2010

• The company earned an operating margin of x5% in FY 2011,

an increase of x6 percentage points over FY 2010

• The company reported debt to equity ratio of x7 in FY 2011, a

decrease of x8% over FY 2010

Net Profit/Loss Total Income

a

t

s

r

q

f

p

b

c

d

e

b4

a4

2011 2008

a1

b1

2010

a3

b3

2009

a2

b2


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SAMPLE Description News

Overview • Company 2 has hospital network in Country A, Country B and Country C and is primarily headquartered in

Country D

• Presently located in 10 cities in India having hospitals in Region 1, Region 2 and Region 3

Facilities • Has core specialties in heart care, brain and spine, bone and joint and minimal access surgery

• Provides advanced medical diagnostics and treatment with personal care

Recognitions • Obtained NABH accreditation within one and a half years of beginning operation in India

• Hospital A, Region 1, Hospital B, Region 2 has been NABH accredited

Business Highlights

Private: Domestic Company – Company 2 (3/5)


19

SAMPLE

T O

W S

Private: Domestic Company – Company 2– SWOT Analysis (5/5)


20

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Medical Diagnostics India - MarketResearch · MEDICAL DIAGNOSTICS MARKET IN INDIA 2014.PPT 2...

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