For the complete report, get in touch with us at : info@netscribes.com Abstract: Netscribes’ latest market research report titled Medical Devices Market in India 2014 captures the technologically driven aspect currently prevailing within the Indian healthcare sector. The booming Indian economy is also witnessing a tremendous surge in the domestic healthcare scenario which, in turn, is leading to perpetual demand for high quality medical products. The demand for high-end, quality devices is especially driven by the private healthcare sector in its efforts to provide sophisticated treatment to patients. However, India lags behind in manufacture of technologically advanced high-end medical equipment, and instead has to rely upon imports from multinationals with extensive service networks. On the other hand, the market for less cost intensive medical supplies and disposable equipment is dominated by domestic manufacturers. Due to the industry’s dependence on imports, multinationals are showing interest in relocation of manufacturing facilities to India as well as in forging alliances with healthcare sector stakeholders in order to capture greater market share. This brings into focus a key role played by the government that involves taxation and import regulations. The government also takes up several initiatives for the benefit of the market. Coverage • Overview of the medical devices market in India and forecasted market size data over 2012 to 2018 • Market Segmentation of medical devices by types • Overview of the medical devices market in India by types and forecasted market size data over 2012 to 2018 • Snapshot of market segmentation of medical equipment  New and Refurbished Medical Equipment  Regional Demand for Medical Equipment • Export-import overview of medical devices, value of export-import over 2009-10 to 2012-13 and country-wise value of export-import for 2011-12 and 2012-13 • Qualitative analysis of market drivers, challenges, trends and regulatory measures taken by the government • Overview of the government bodies and their responsibilities • Analysis of the competitive landscape and detailed profiles of major players Why Buy • Get a clear understanding of the medical devices market in India, how it operates and the various stages of the value chain • Understand the current market segmentation and future growth potential of the medical devices market in India till 2018 and plan strategies to gain from it • Strategize marketing, market-entry, market expansion, and other business plans by understanding factors influencing growth in the market • Understand your competitors’ business structures, strategies and prospects, and respond accordingly • Make more informed business decisions with the help of insightful recommendations provided to succeed in the Indian medical devices market

1. Medical Devices Market – India
February 2014

2. 2MEDICAL DEVICES MARKET IN INDIA 2014.PPT
Executive Summary
Market
Trends
Competitive
Landscape
Domestic market for medical devices in India was pegged at INR X1 bn in 20-- which is poised to
grow to INR X7 bn by 20--
Growing hospital infrastructure and healthcare spending is fostering the need for high-end devices
for accurate and fast treatment
Relocation of manufacturing facilities
Increasing joint ventures and tie-ups
Various exhibitions and trade fairs
Drivers &
Challenges
Drivers:
 Improving health infrastructure
 Increasing healthcare spending
 Changing demographics and growing target
consumer group
 Increasing lifestyle diseases and therapies
 Increasing medical tourism in India
 Growing health insurance market
Government
Involvement
Govt. bodies and associations such as MoHFW, CDSCO and AIMED are aiming to provide medical
devices sector with a regulatory structure in order to promote indigenous production
CDSCO has laid down registration and license mechanisms to regularize import of drugs and
devices
Challenges:
 High dependency on imports
 Lack of standard regulatory
structure
 Increasing demand for refurbished
devices
 Focus on cost reduction and innovation
 Use of plastics in medical devices
Major Players
Company A Company B Company C

3. 3MEDICAL DEVICES MARKET IN INDIA 2014.PPT
•Macro Economic Indicators
•Indian Healthcare Scenario
•Introduction
•Market Overview
•Export Import
•Distribution Channel
•Drivers & Challenges
•Trends
•Government Involvement
Government Bodies
Government Regulations
Government Initiatives
•Competitive Landscape
•Recent Investments
•Strategic Recommendations
•Appendix

4. 4
SAMPLEEconomic Indicators (1/3)
14.71
11
12
13
14
15
INR tn
Q4
n4
m4
Q3
o3
n3
m3
Q2
p2
o2
n2
m2
Q1
p1
o1
n1
m1
20-- - --20-- - --20-- - -- 20-- - --
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
0.83
1.26
0.42
0.85
1.73
0.0
0.5
1.0
1.5
2.0
Jun 2013 - Jul 2013 Oct 2013 - Nov 2013
%
Sep 2013 - Oct 2013Aug 2013 - Sep 2013Jul 2013 - Aug 2013
MEDICAL DEVICES MARKET IN INDIA 2014.PPT

5. 5
Healthcare system in India requires a larger public outlay
due to huge population base
Healthcare Industry Overview
• According to “World Health Statistics 2011 Report, India”,
healthcare comprised 4.2% of India’s GDP in 2008
 Public and private expenditure on healthcare as percentage of
GDP was 1.4% and 2.8% respectively
• Favorable demographics, increase in awareness levels
and better medical care are some of the driving factors
behind the healthcare sector in India
• Hospitals form the largest segment of overall healthcare
market, followed by pharmaceuticals, medical devices,
health insurance and diagnostics
• Gradual penetration of health insurance is making health
services more affordable through increased demand for
preventive and curative healthcare services
• Superior quality healthcare, coupled with low treatment
costs in comparison to other countries, is benefiting
Indian medical tourism which has, in turn, enhanced the
prospects of the Indian healthcare market
 Treatment for major surgeries in India costs approximately 20%
of that in developed countries
Healthcare Sector – Market Size & Growth
0
5
10
15
h6
2017e
INR units
2016e
H%
2018e
h7
h5
2015e
h4
2014e
h3
2013e
h2
2012
h1
Healthcare Market Segmentation: Overview
C%
A%
E%
B%
D%
F%
FD
EC
B
A
Note: ‘Others’ include healthcare IT and allied activities in healthcare space
MEDICAL DEVICES MARKET IN INDIA 2014.PPT

6. 6MEDICAL DEVICES MARKET IN INDIA 2014.PPT
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 articles
 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 A
Low Risk
Class B
Low-moderate Risk
Class C
Moderate-high Risk
Class D
• Heart valves,
implantable defibrillator
High Risk
• Includes devices such as
thermometers 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 sufficient safety and
effectiveness of the device
Medical Devices – Definition

7. 7MEDICAL DEVICES MARKET IN INDIA 2014.PPT
Growing population, along with a high growth economy, will
be instrumental in driving demand for medical devices
• Medical devices is essentially a multi product industry
that comprises of products ranging from MRI equipment
to surgical needles
• There are some 700 medical device makers in India
 Domestic manufacturers dominate the market for low value
medical supplies such as needles, syringes, catheters, blood
collection tubes, medical electronics and implants, while
multinational corporations control the high end medical
equipment segment
• In terms of technology – high end medical devices are
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
• The various stakeholders in the medical devices industry
include manufacturers, distributors, hospital chains,
pathology labs and diagnostic centers
• The medical equipment forms the largest share in the
medical devices market
 Medical equipments stand out due to the high price of the
equipment in comparison to implants and disposables and
supplies
Market Overview (1/3)
0
200
400
600
800
INR bn
X%
20--e
X7
20--e
X6
20--e
X5
20--e
X4
20--e
X3
20--e
X2
20--
X1
Medical Devices Market Size & Growth
Market Segmentation 20--
Y%
Z%
X%
YX Z

8. 8MEDICAL DEVICES MARKET IN INDIA 2014.PPT
Drivers & Challenges – Summary
Drivers
Improving health infrastructure
Increasing healthcare spending
Changing demographics and growing
target consumer group
Increasing lifestyle diseases and
therapies
Increasing medical tourism in India
Growing health insurance market
Challenges
High dependency on imports
Lack of standard regulatory structure

9. 9
SAMPLE
MEDICAL DEVICES MARKET IN INDIA 2014.PPT
Trends
`
Relocation of manufacturing facilities
Increasing joint ventures and tie-ups
Focus on cost reduction and innovation
Increasing demand for refurbished devices
Various exhibitions and trade fairs
Key
Trends
Use of plastics in medical devices

10. 10MEDICAL DEVICES MARKET IN INDIA 2014.PPT
Disclosures to be made by the importers of medical devices
are as follows:
• Applicant’s and foreign
manufacturer’s company name,
address and contact information
• Name and address of the local
authorized representative
• Name and address of the
importer
• Description of device
• Category of device
• Method of use
• Medicals specialty of the device
• Particulars of the constituents
• Packaging description
• Storage conditions
• Contraindications, warnings,
precautions & alternate therapy,
wherever applicable
• Approval of the product from any
other regulatory agency
• Copy of ISO/EN Certification for
the manufacturing facility
• List of countries where the device
is being sold
• List of countries where device is
withdrawn from sale with
reasons, if any
• Details of Good Manufacturing
Practices employed by the
manufacturer to ensure quality of
the device
• For e.g. Component/Material
used, manufacturing process,
final product testing or design
inputs/outputs verification, shelf
life
Applicant Details
• If a device incorporates a
medicinal product, it must be
accompanied by: data on the
safety, quality & usefulness of the
medicinal substance used, data
on compatibility with the
products, clinical data &
published articles, and batch
release certificate
Product
Information
Regulatory
Status
Master File
Devices
Containing
Medicinal
Product
Post
Market
Surveillance
Conformity of
Product Safety
and Standards
• Procedures for distribution of
records
• Complaint handling
• Adverse incident reporting
• Procedure for product recall
• Registration Certificate shall be
issued in Form 41 of the said
Rules
• Application for import license
shall be made in Form 8 along
with a fee of INR 1,000 in the
Form and manner prescribed
under the Drugs and Cosmetics
Rules

11. 11MEDICAL DEVICES MARKET IN INDIA 2014.PPT
Key Ratios of 3 Major Companies – Operational Basis (FY 2012-13) (1/4)
Competitive Benchmarking (2/5)
0
20
40
60
c3b3
Player B Player C
a3
%
c2
b2
a2
Player A
c1
b1
a1
Net MarginOperating MarginGross Margin (%)
• Player A recorded gross margin of a1% higher than both Player B and Player C which recorded gross margins of b1% and
c1% respectively
• Player A recorded operating margin of a2%, higher than both Player B and Player C which recorded operating margins
of b2% and c2% respectively
• Player A recorded net margin of a3% higher than both Player B and Player C which recorded net margin, of b3% and
c3% respectively
Note: Calculation on basis of figures for latest available financial years

12. 12
SAMPLEPublic: Domestic Company – Player A (1/4)
Key People
Products and Services
Company Information Offices and Centres – India
Corporate Address xx
Tel No. xx
Fax No. xx
Website xx
Year of Incorporation xx
Ticker Symbol xx
Stock Exchange xx
Name Designation
Thane
Head Office
Category Products/Services
Healthcare
Equipment and
Supplies
Manufactures and sells sterile needled
sutures such as absorbable , non
absorbable sutures, female urinary
incontinency set, surgical mesh,
disposable skin stapler, cardiovascular
vessel knife
MEDICAL DEVICES MARKET IN INDIA 2014.PPT

13. 13
SAMPLEKey Ratios
Financial Summary
• The company earned a net profit of INR 15.74 mn in FY 20--, as
compared to net profit of INR 15.09 mn in FY 20--
• The company reported total income of INR 540.87 in FY 20--,
registering an increase of 3.06 per cent over FY 20--
• The company earned an operating margin of 7.48 per cent in FY 20--
, a decrease of 0.46 percentage points over FY 20--
• The company reported debt to equity ratio of 0.72 in FY 20--, an
increase of 10.58 per cent over FY 20--
Financial Summary
Net Profit / LossTotal Income
20.79
0
200
400
600
-20
0
20
40
2010
15.50
476.38
INR mn
2011
502.45
2012
15.09
INR mn
540.87524.80
2013
15.74
Indicators Value (22/01/2014)
Market Capitalization (INR) 167.82
Particulars
y-o-y change
(2011-10)
2013 2012 2011 2010
Profitability Ratios
Operating Margin -0.46 7.48% 7.94% 9.15% 8.09%
Net Margin 0.02 2.89% 2.87% 4.14% 3.25%
Profit Before Tax Margin -0.03 4.77% 4.80% 6.39% 4.94%
Return on Equity -0.48 9.01% 9.49% 14.45% 12.60%
Return on Capital Employed -2.32 19.00% 21.32% 25.47% 25.19%
Return on Working Capital -3.93 24.87% 28.80% 35.41% 38.05%
Return on Assets -1.20 8.52% 9.71% 10.69% 9.81%
Return on Fixed Assets -0.98 83.26% 84.24% 98.45% 74.55%
Cost Ratios
Operating costs (% of Sales) 0.43 92.48% 92.06% 90.85% 91.91%
Administration costs (% of
Sales)
0.94 41.69% 40.75% 42.02% 37.63%
Interest costs (% of Sales) 0.43 2.30% 1.87% 1.66% 2.92%
Liquidity Ratios
Current Ratio 0.08% 1.62 1.62 1.52 1.42
Cash Ratio 247.52% 0.12 0.03 0.01 0.02
Leverage Ratios
Debt to Equity Ratio 10.58% 0.72 0.66 0.70 0.95
Debt to Capital Ratio 6.14% 0.42 0.40 0.41 0.49
Interest Coverage Ratio -23.00% 3.26 4.24 5.51 2.77
Efficiency Ratios
Fixed Asset Turnover 4.48% 11.08 10.60 10.76 9.21
Asset Turnover -7.30% 1.13 1.22 1.17 1.21
Current Asset Turnover -8.59% 1.27 1.39 1.32 1.40
Working Capital Turnover -8.71% 3.31 3.62 3.87 4.70
Capital Employed Turnover -9.99% 1.80 2.00 2.06 1.99
Improved Decline
Financial Snapshot
Public: Domestic Company – Player A (2/4)
MEDICAL DEVICES MARKET IN INDIA 2014.PPT

14. 14
Key Business Segments Key Geographic Segments
Business Highlights
Description Details
Overview
• Is an ISO 9001:2008 certified company
• Introduced Good Manufacturing Practice in production and quality control areas ,including detailed batch
record maintenance, recall system, procedure and production environment control and staff training
Medical Equipment and
Supplies
• Product profile includes absorbable sutures ,including natural sutures and synthetic sutures
• Offers non absorbable sutures ,including needles for cardiovascular surgery, needle suture combinations
and temporary pacemaker electrode
• Provides medical devices such as female urinary incontinency set, surgical mesh, skin stapler, titanium
haemostatic clip for cardiovascular surgery, disposable aortic punch for cardiovascular anastomosis and
cardiovascular vessel knife
Recent Activities
• It has consolidated its position in cardiovascular sutures segment and expects to carry out further
consolidation during 2013-14
Player A has been operating
solely in the medical devices &
surgical sutures segment over
the last five years
Player A has been operating
solely in India over the last five
years
100%
40%
60%
80%
20%
0%
2013
100.0%
Manufacturing and Selling of Medical Devices
20%
0%
100%
80%
60%
40%
2013
100.0%
India
Public: Domestic Company – Player A (3/4)
MEDICAL DEVICES MARKET IN INDIA 2014.PPT

15. 15
SAMPLE
• X • X
• X• X
TO
WS
Public: Domestic Company – Player A – SWOT Analysis (4/4)
MEDICAL DEVICES MARKET IN INDIA 2014.PPT

16. 16
SAMPLEAppendix
Ratio Calculations
Operating Margin
(Operating
Income/Revenues)*100
Net Margin (Net Profit / Revenues) *100
Profit Before Tax Margin
(Income Before Tax / Revenues
*100
Return on Equity (ROE)
(Net Income / Shareholders
Equity)*100
Return on Capital (ROCE)
EBIT / (Total Assets – Current
Liabilities)*100
Return on Working Capital
(Net Income / Working Capital)
*100
Return on Assets (Net Income / Total Assets)*100
Return on Fixed Assets (Net Income / Fixed Assets) *100
Operating Costs (% of Sales)
(Operating Expenses / Sales)
*100
Administration Costs (% of
Sales)
(Administrative Expenses / Sales)
*100
Interest Costs (% of Sales) (Interest Expenses / Sales) *100
Ratio Calculations
Current Ratio
Current Assets / Current
Liabilities
Cash Ratio
{(Cash & Bank Balance +
Marketable Securities) / Current
Liabilities)}
Debt to Equity
Total Liabilities / Shareholders
Equity
Debt to Capital Ratio
{Total Debt / (Shareholders
Equity + Total Debt)}
Interest Coverage Ratio EBIT / Interest Expense
Fixed Asset Turnover Sales / Fixed Assets
Asset Turnover Sales / Total Assets
Current Asset Turnover Sales / Current Assets
Working Capital Turnover Sales / Working Capital
Capital Employed Turnover Sales / Shareholders Equity
MEDICAL DEVICES MARKET IN INDIA 2014.PPT

17. 17
Sources of Information
PRIMARY RESEARCH
Interviews
Industry Experts
Company WebsitesLeading Newspapers
Government Websites / ResourcesJournals / Magazines
Online MagazinesBusiness Magazines
Premium Databases
Online Journals / Articles
Electronic MediaPrint Media
SECONDARY RESEARCH
MEDICAL DEVICES MARKET IN INDIA 2014.PPT

18. 18
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Medical Devices Market – India report is part of Research on India’s Healthcare Industry
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MEDICAL DEVICES MARKET IN INDIA 2014.PPT