ECG Equipment Market – India
November 2014
Executive Summary
Market
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:
Drivers & Challenges
Trends
Challenges:
Increasing lifestyle-based diseases Improving health infrastructure Changing demographics Increased healthcare spending Continuous technological upgradation Multiple uses of ECG
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
Competition
Company 1
Company 2
Company 3
Company 4
Company 5
Company 6
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
2
•Macroeconomic Indicators •Introduction •Market Overview •EXIM •Drivers & Challenges •Trends •Competitive Landscape •Strategic Recommendations •Appendix ECG EQUIPMENT MARKET IN INDIA 2014.PPT
3
Macroeconomic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 16 15
a4
14
a3 a2 a1
13
d3 d2 d1
c3 c2 c1
b3 b2 b1
12
Q1
Q2 2011-12
2012-13
2013-14
Q3 2014-15
Q4
Inflation Rate: Monthly % 2 1
p
r
s
q
0 -1
-t
-2
Jul 2013 - Aug 2013
Aug 2013 - Sep 2013
Sep 2013 - Oct 2013
Oct 2013 - Nov 2013
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
Nov 2013 - Dec 2013 4
Market Overview (1/23) ECG Equipment Market – Overview (1/4) • 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) INR mn
Type 1
Type 2
Type 3
Type 4
2,000 +x1%
1,500 1,000
c1 a1 p1%
500 0
q1% r1% s1% 2008
b1 p3% p2% q2%
r2% s2%
2009
r3%
q3%
d1 p4% r4%
q4%
f1 p5% q5% r5%
s3%
s4%
s5%
2010
2011
2012
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
g1 p6% q6% r6% s6%
2013 5
Market Overview (2/23) ECG Equipment Market – Overview (2/4) • 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) INR mn
Type 1
Type 2
Type 3
Type 4
3,000 +x2%
2,500 2,000 1,500 1,000 500
a2 t1% u1% v1%
b2 t2% u2% v2%
c2 t3% u3% v3%
w1%
w2%
2013
2014e
d2 t4% u4%
f2 t5%
u5%
g2 t6%
u6% v6%
v4%
v5%
w3%
w4%
w5%
w6%
2015e
2016e
2017e
2018e
0
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
6
Although Indian products are being accepted worldwide, thereby providing scope for exports to grow… Exports – Overview
Export of ECG Equipment
• 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
Export (Region Wise: 2012-13)
INR mn
Volume
r2
600 400 200
20 s2
10
s1
0
0 2010-11
2011-12
2012-13
2013-14
Export (Region Wise: 2013-14) Country 6
g2%
Country 7
Country 3
f2%
Country 8
Country 4
c2% d2%
Country 9
Country 5
b1%
r1
q1
p1
Country 2
f1% d1% c1%
30
q2
Country 1
g1%
‘000 units
Value
Others
Country 10
b2%
a1%
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
a2%
Others
7
Drivers & Challenges – Summary
Drivers Increasing lifestyle-based diseases
Challenges
Improving health infrastructure
Increasing imports from China
Changing demographics
Increasing competition in the market
Increased healthcare spending
Lack of knowledge for interpreting ECG results
Continuous technological upgradation Multiple uses of ECG
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
8
Trends – Summary
Increase in the number of players
Continuous technological upgradation
Key Trends Incorporation of IT solutions in ECG
Increased application of telemedicine
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
9
Market Competition – Porter’s Five Forces Analysis Threat of New Entrants
Impact
Impact
Impact Impact
Bargaining Power of Suppliers
Competitive Rivalry
Bargaining Power of Buyers
Impact
Threat of Substitutes
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
10
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
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
11
Competitive Benchmarking (2/5) Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3) Operating Margin
Net Margin
%
25
a1
20 15 b1
10
a2
b2
5
a3 b3
0 Company 1
Company 2
Company 3
• 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
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
12
Public: Domestic Company – Company 1 (1/4) Company Information
Offices and Centres – India
Corporate Address
Tel No. Website Year of Incorporation Ticker Symbol Stock Exchange
Products and Services Category
Head Office
Products/Services
Key People 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
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
13
Public: Domestic Company – Company 1 (2/4) Financial Snapshot Total Income
INR mn 800
a2
600 400
Key Ratios Net Profit/Loss
INR mn 50
b2
0
-c2 a1
200
b1
c1
-d2
-50
d1
0
-100
2011
2012
2013
2014
Financial Summary • 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
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 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
Key Financial Performance Indicators Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)
y-o-y change (2014-13)
Cost Ratios
• Company incurred a net loss of INR XX mn in FY 20XX, as compared to net profit of INR Y mn in FY 20YY
Indicators
Particulars
Value (dd/mm/yyyy)
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
Decline
14
Public: Domestic Company – Company 1 (3/4) Key Business Segments Segment 1
Key Geographic Segments Region 1
Segment 2
100%
Region 2
100% p1%
q1%
50% p2%
q2%
0% 2011
2012
r1% r2% 2013
s1%
50% s2%
0% 2014
u1%
v1%
u2%
v2%
2012
2013
t1% t2% 2011
Business Highlights Description
News
Overview
Network
ECG Equipment
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
15
Public: Domestic Company – Company 1 – SWOT Analysis (4/4)
S
W
O
T
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
16
Private: Domestic Company – Company 2 (1/5) Company Information
Offices and Centres – India
Corporate Address Tel No. Fax No. Website Year of Incorporation
Products and Services Category Radiology Cardiology Surgery Neurology
Head Office
Products/Services
Key People Name
Designation
Person 1
Chairman and Managing Director
Person 2
Additional Managing Director
Person 3
Whole-Time Director
Person 4
Whole-Time Director
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
17
Private: Domestic Company – Company 2 (2/5) Shareholders of the Company Name
Ownership Structure No. of Shares held
Category 1
Category 3
Category 2
Category 4
Shareholder 1 0.3% 12.6% 0.6%
Shareholder 2 Shareholder 3 Shareholder 4 Shareholder 5
Shareholder 6 Shareholder 7 86.5% Shareholder 8 Total
Note: AGM as of 30th Sep 2013 ECG EQUIPMENT MARKET IN INDIA 2014.PPT
18
Private: Domestic Company – Company 3 (3/5) Financial Snapshot
Key Ratios
Total Income
INR mn
b2
a2
c2
b1
a1
150 100
1,000 500
INR mn
d2
2,000 1,500
Net Profit / Loss
c1
d1
50 0
0
-50 2010
2011
2012
2013
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
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
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
Decline
19
Private: Domestic Company – Company 4 (4/5) Business Highlights Description
News
Overview
ECG Equipment
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
20
Private: Domestic Company – Company 5 – SWOT Analysis (5/5)
S
W
O
T
ECG EQUIPMENT MARKET IN INDIA 2014.PPT
21
Thank you for the attention ECG Equipment Market – India report is part of Netscribes’ Healthcare Series. For any queries or customized research requirements, contact us at: Phone: E-Mail:
+91 22 4098 7600 info@netscribes.com
About Netscribes, Inc. Netscribes, Inc. is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes, Inc. is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction. ECG EQUIPMENT MARKET IN INDIA 2014.PPT
22