ECG Equipment Market – India
November 2014
2
Executive Summary
Market
Drivers & Challenges
Trends
Competition
ECG equipment market in India is expected to exhibit a CAGR of x1% between 2013-2018e in value terms, and a CAGR of x2% in volume-terms during the same period
Product wise the major market segments include Type 1 ECG, Type 2 ECG, Type 3 ECG, and Type 4 ECG
Type 1 ECG are slowly being replaced by Type 2 ECG while Type 3 ECG are being replaced by Type 4 ECG
Drivers: Increasing lifestyle-based diseases
Improving health infrastructure
Changing demographics
Increased healthcare spending
Continuous technological upgradation
Multiple uses of ECG
Challenges: Increasing imports from China
Increasing competition in the market
Lack of knowledge for interpreting ECG results
Continuous technological upgradation Increased application of telemedicine Incorporation of IT solutions in ECG Increase in the number of players
Major Players
Company 1 Company 2 Company 3
Company 4 Company 5 Company 6
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•Macroeconomic Indicators
•Introduction
•Market Overview
•EXIM
•Drivers & Challenges
•Trends
•Competitive Landscape
•Strategic Recommendations
•Appendix
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Macroeconomic Indicators (1/3)
12
13
14
15
16
INR tn
Q4
d3
d2
d1
Q3
c3 c2 c1
Q2
b3
b2 b1
Q1
a4
a3 a2 a1
2014-15 2013-14 2012-13 2011-12
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
-2
-1
0
1
2
%
Nov 2013 - Dec 2013
-t
r
Oct 2013 - Nov 2013
s q
Sep 2013 - Oct 2013 Aug 2013 - Sep 2013 Jul 2013 - Aug 2013
p
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
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• ECG equipment market in India grew at a CAGR of x1% between 2008 and 2013, reaching INR ‘g1’ mn in 2013 from INR ‘a1’ mn in 2008
• During this period, the demand for Type 1 ECG kept declining rapidly, while demand for the Type 4 segment increased considerably
• Consequently, the share of the Type 4 segment increased with each year at the expense of the Type 1 segment
• Demand for the Type 2 segment and the Type 3 segment also increased during this period
Market Size – Historical (Value-Wise)
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
ECG Equipment Market – Overview (1/4)
Market Overview (1/23)
0
500
1,000
1,500
2,000
r3%
s3%
r6%
s6%
q6%
p6%
2012
f1
s5%
r5% q5%
p1%
2010
q4%
p4%
c1
2011
d1
s4%
r4%
p5%
q3%
p3%
2009
b1
s2% r2%
q2%
p2%
2008
a1
s1% r1%
q1%
+x1%
2013
g1
INR mn Type 1 Type 3 Type 2 Type 4
6
• Market for ECG equipment in India is poised for steady growth in future with emphasis on the Type 4 and Type 2 segments
• The market will grow at a CAGR of x2% to reach a value of INR ‘g2’ mn in 2018
• During this period, the share of the Type 4 segment will decline slightly, and the Type 2 segment is forecasted to gain
• Type 1 segment however, will continue to face low demand and its share in the market will continue to decline during this period
Market Size – Forecasted (Value-Wise)
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
ECG Equipment Market – Overview (2/4)
Market Overview (2/23)
0
500
1,000
1,500
2,000
2,500
3,000
f2
w5%
u5%
v5%
2018e
g2
w6%
v6%
u6%
2017e
t6%
t3%
2014e
b2
w2%
v2% u2%
u4%
t5%
2016e
d2
w4%
v4% t1%
INR mn
t2%
2013
a2
w1%
v1% u1%
t4%
2015e
c2
w3%
v3%
u3%
+x2%
Type 4 Type 2 Type 3 Type 1
7
Although Indian products are being accepted worldwide, thereby providing scope for exports to grow…
• From India products are mainly exported to Country
1, Country 2, and Country 3
• Indian manufacturers have been able to manufacture
advanced products at low prices due to the
availability of cheap manpower, and these products
are gaining immense popularity in foreign countries
• In 2013-14 however, export of ECG equipment
declined considerably
Exports – Overview Export of ECG Equipment
Export (Region Wise: 2013-14)
g2%
f2%
d2% c2%
b2%
a2%
Export (Region Wise: 2012-13)
d1% c1%
b1%
a1%
g1%
f1%
0
200
400
600
0
10
20
30
2011-12
q1
q2
2010-11
p1
INR mn
2013-14
s1
s2
2012-13
r1
r2
‘000 units Value Volume
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
Country 4
Country 3
Country 2
Country 1
Others
Country 5 Country 10
Others
Country 9
Country 8
Country 7
Country 6
8
Drivers & Challenges – Summary
Drivers
Increasing lifestyle-based diseases
Improving health infrastructure
Changing demographics
Increased healthcare spending
Continuous technological upgradation
Multiple uses of ECG
Challenges
Increasing imports from China
Increasing competition in the market
Lack of knowledge for interpreting ECG results
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Increase in the number of players
Continuous technological upgradation
Incorporation of IT solutions in ECG
Increased application of telemedicine
Key Trends
Trends – Summary
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Competitive Rivalry
Bargaining Power of Suppliers
Bargaining Power of Buyers
Threat of Substitutes
Threat of New Entrants
Impact
Impact
Impact
Impact
Impact
Market Competition – Porter’s Five Forces Analysis
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Competitive Benchmarking (1/5)
Public Trading Comparables
Company 1 Company 2 Company 3
Market Capitalization (INR mn)
Share Price (INR)
EV/EBITDA (x)
EV/Revenue (x)
PE Ratio
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Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3)
Competitive Benchmarking (2/5)
0
5
10
15
20
25
%
Company 3
b3
a3
Company 2
b2 a2
Company 1
b1
a1
Net Margin Operating Margin
• Company 1 recorded operating margin of a1%, higher than that of Company 3 and Company 2 which recorded operating margin of a3% and a2% respectively
• Net margin was highest for Company 1 which recorded a net margin of b1%, followed by Company 2 and Company 3 which recorded net margin of b2% and b3% respectively
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Key People
Products and Services
Company Information Offices and Centres – India
Category Products/Services
Health
Bankcard and Technology
Name Designation
Person 1 Chairman and Managing Director
Person 2 Whole Time Director
Person 3 Director
Person 4 Chief Executive Officer
Corporate Address
Tel No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Head Office
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Public: Domestic Company – Company 1 (1/4)
14
Financial Snapshot Key Ratios
Financial Summary
• Company incurred a net loss of INR XX mn in FY 20XX, as compared to net profit of INR Y mn in FY 20YY
• It reported total Income of INR XX mn in FY 20XX, registering an increase of X per cent over FY 20YY
• It earned an operating margin of X.X per cent in FY 20XX an increase of X.X percentage points over FY 20YY
• The company reported debt to equity ratio of X.XX in FY 20XX, an increase of X.X per cent over FY 20YY
Key Financial Performance Indicators
Indicators Value (dd/mm/yyyy)
Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)
Particulars y-o-y change
(2014-13) 2014 2013 2012 2011
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
0
200
400
600
800
-100
-50
0
50
INR mn INR mn
2014
-d2
d1
2013
-c2
c1
2012
b2
b1
2011
a2
a1
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Public: Domestic Company – Company 1 (2/4)
15
Key Business Segments Key Geographic Segments
Business Highlights
0%
50%
100%
q2%
q1%
2011
p2%
p1%
2014
s2%
s1%
2013
r2%
r1%
2012
0%
50%
100%
2013
v2%
v1%
2012
u2%
u1%
2011
t2%
t1%
Description News
Overview
Network
ECG Equipment
Region 1 Region 2 Segment 1 Segment 2
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Public: Domestic Company – Company 1 (3/4)
16
T O
W S
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
Public: Domestic Company – Company 1 – SWOT Analysis (4/4)
17
Private: Domestic Company – Company 2 (1/5)
Key People
Products and Services
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Category Products/Services
Radiology
Cardiology
Surgery
Neurology
Name Designation
Person 1 Chairman and Managing Director
Person 2 Additional Managing Director
Person 3 Whole-Time Director
Person 4 Whole-Time Director
Head Office
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0.6% 0.3%
12.6%
86.5%
Category 4
Category 3
Category 2
Category 1
Shareholders of the Company Ownership Structure
Name No. of Shares held
Shareholder 1
Shareholder 2
Shareholder 3
Shareholder 4
Shareholder 5
Shareholder 6
Shareholder 7
Shareholder 8
Total
Note: AGM as of 30th Sep 2013
Private: Domestic Company – Company 2 (2/5)
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Financial Snapshot Key Ratios
Financial Summary
• Company earned a net profit of INR XX mn in FY 20XX, as compared to net profit of INR Y mn in FY 20YY
• It reported total Income of INR XX mn in FY 20XX, registering an increase of X per cent over FY 20YY
• It earned an operating margin of X.X per cent in FY 20XX an increase of X.X percentage points over FY 20YY
• The company reported debt to equity ratio of X.XX in FY 20XX, an increase of X.X per cent over FY 20YY
Improved Decline
Net Profit / Loss Total Income
1,000
500
0
150
100
-50
50
0
2,000
1,500
2013
d2
d1
2012
c2
c1
2011
b2
b1
2010
a2
a1
INR mn INR mn 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 3 (3/5)
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Description News
Overview
ECG Equipment
Business Highlights
Private: Domestic Company – Company 4 (4/5)
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T O
W S
Private: Domestic Company – Company 5 – SWOT Analysis (5/5)
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