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Endoscope Market India Endoscope Market – March 2013
Executive Summary
Market
Endoscope market in India was pegged at INR a bn in 2011 and is expected to grow at a CAGR of x% till 2016 There are two types of endoscopes available in the market, Type 1 and Type 2, with the former h i having a significantly higher market share i ifi tl hi h k t h
Drivers:
Drivers & i & Challenges
Technological Trends Competitive Landscape
Challenges:
Improving technology Massive, growing, ageing, and chronically Massive growing ageing and chronically ill population Improving hospital infrastructure Increasing healthcare spending Increasing awareness Increasing awareness White Light Endoscopy (WLE) Chromoendoscopy Narrow‐Band Imaging (NBI)
Import dependant market Complications arising out of Complications arising out of endoscopies Cumbersome to maintain
Autofluorescence Imaging (AFI) Confocal Laser Endomicroscopy (CLE) Natural Orifice Transluminal Endoscopic Surgery (NOTES)
Major Domestic Players
Major Foreign Players
Company 1
Company 3
Company 5
Company 2
Company 4
Company 6
ENDOSCOPE MARKET IN INDIA 2013.PPT
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•Economic Indicators •Introduction •Market Overview •EXIM •Drivers & Challenges •Technological Trends •Competitive Landscape •Competitive Landscape •Strategic Recommendations •Appendix d ENDOSCOPE MARKET IN INDIA 2013.PPT
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Economic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 14
a1 b1
12
c1
a2 b2 c2
11
d1
d2
13
b4 c4
b3 c3
d4
d3
10 Q1
Q2 2009‐10
2010‐11
Q3 2012‐13
2011‐12
Q4
Inflation Rate: Monthlyy % 1.0
a
c
08 0.8 0.6
b
d
e
Oct 2012 ‐ Nov 2012
Nov 2012 ‐ Dec 2012
0.4 0.2 0.0
Jul 2012‐ Aug 2012
Aug 2012 ‐ Sep 2012
Sep 2012 ‐ Oct 2012
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Market for endoscopes in India is poised to grow in the coming years with greater emphasis on rigid endoscopes Indian Market Overview – Endoscopes • Indian market for endoscopes is expected to show steady growth in coming years, providing strong opportunities to present and potential players to earn high revenues and increase their profits In 2011, the market for endoscopes was valued at INR a bn and by 2016, this value will increase to INR g bn
• There are two types of endoscopes available in the market, Type 1 and Type 2 Value‐wise the market for Type 1 is greater than that for Type 2
Market Size and Growth (Value‐wise) INR bn x%
5 4
a
b
c
2011
2012e
2013e
d
f
g
2014e
2015e
2016e
3 2 1 0
Market Segmentation – Based on Value
• A number of players are competing for a share in this b f l f h h market Company 1 is a clear leader in the rigid segment with other prominent players being Company 2, Company 3 and Company 4 and Company 4 Flexible endoscopy segment is dominated by Company 5
Segment 1 p%
Segment 2
• Continuous technological progress will result in steady growth in the market
q%
20‐‐ ENDOSCOPE MARKET IN INDIA 2013.PPT
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Although low cost products are being exported from India to a few countries… Exports – Overview
Export of Endoscopes
• Since FY 2009, export of endoscopes from India has been steadily rising • In FY 2011, India mainly exported endoscopes to I FY 2011 I di i l t d d t Country 1, Country 2 and Country 3 whereas the highest exports were to Country 2 and Country 3 in FY 2010 • Due to availability of technology expertise and cheap manpower, Indian manufacturers have been able to I di f h b bl manufacture products at a lower price which are gaining popularity in the foreign markets
INR mn
Export (Region Wise: 2010)
Volume
60
b2
50 40 30
a4
20
a1
10
b1
0
2008
Country 2 Country 3
t1%
p1%
s1%
b4
a2
a3 b3
2009
2010
2011
12 10 8 6 4 2 0
Export (Region Wise: 2011) Country 1
u1%
Units
Value
r2%
s2%
Country 2
t2% u2% v2%
q2%
Country 4 Country 4
Country 3 Country 5 Country 6 Country 6
Country 5
Country 7
Others
Country 8 Others
r1% q1%
p2% Note: Figures are for respective financial years ENDOSCOPE MARKET IN INDIA 2013.PPT
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Drivers & Challenges – Summary
Drivers Improving technology Massive, growing, ageing, and chronically ill population Improving hospital infrastructure
Challenges Hospitals under investing in endoscopes
Increasing healthcare spending Increasing awareness
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Technological Trends – Summary White Light Endoscopy (WLE)
Chromoendoscopy
Narrow‐Band Imaging (NBI)
Technological ` Trends Autofluorescence Imaging (AFI)
Confocal Laser Endomicroscopy (CLE) Confocal Laser Endomicroscopy (CLE)
Natural Orifice Transluminal Endoscopic Surgery (NOTES) p g y( )
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Competitive Benchmarking (1/4) Key Ratios of Top 3 Companies – Operational Basis (FY 2012) (1/3) Operating Margin
% 5
Net Margin
b1
a1 1
0 ‐5 ‐10
b2
a2
c1
‐15
c2 Company A
Company B
Company C
• Company A recorded operating margin of a1%, higher than that of both Company B which recorded operating margin of negative b1% and Company C which recorded operating margin of negative c2% • Although net margin for both Company B and Company C are negative, Company B recorded a higher net margin of negative b2% while Company C recorded a net margin of negative c2%
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Private: Domestic Company – Company 1 (1/5) Company Information
Offices and Centres – India
Corporate Address
New Delhi
Tel No. Website Year of Incorporation
Products and Services Products and Services Category
Head Office
Products/Services
Key People N Name
D i ti Designation
Person 1
Director
Person 2
Director
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Private: Domestic Company – Company 1 (2/5) Shareholders of the Company FY 2012
Ownership Structure Directors or relatives of directors
Name
No. of Shares held
Person 1 Person 2 Total 100%
Note: Details of shareholders as on AGM dated 29th Sep, 2012 ENDOSCOPE MARKET IN INDIA 2013.PPT
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Private: Domestic Company – Company 1 (3/5) Financial Snapshot i i lS h
K Key Ratios i
Total Income
Net Profit / Loss
Particulars
INR mn
INR mn
800
10
r2
0
600
‐10 400 p2
r1
200 0
s1
q2
p1 2008
q1 2009
30 ‐30 s2
2010
‐20
‐40
2011
Financial Summary • The company incurred a net profit/net loss of INR X mn in FY 20XX, as compared to net profit/net loss of INR Y mn in FY 20YY • The company reported total Income of INR XX mn in FY 20XX, registering an increase/decrease of X per cent over FY 20YY • The company earned an operating margin of X.X per cent in FY The company earned an operating margin of X X per cent in FY 20XX an increase/decrease of X.X percentage points over FY 20YY • The company reported debt to equity ratio of X.XX in FY 20XX, an increase/decrease of X.X per cent over FY 20YY
y‐o‐y change 2011 (2011‐10)
2010
2009
2008
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) 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 Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
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Private: Domestic Company – Company 1 (4/5) Business Highlights Description
News
Overview
• Company 1 supplies medical equipments and offers sales, support and services to its Company 1 supplies medical equipments and offers sales support and services to its clients • It is one of the established players in the refurbished devices market • It is associated with Company 2and several other international companies such as Co pa y 3 ( o ea), Co pa y (C a), Co pa y 5 (C a), Co pa y 6 (US ), Co pa y Company 3 (Korea), Company 4 (China), Company 5 (China), Company 6 (USA), Company 7 (China), Company 8 (Korea)
Endoscope Products
• Sells ‘Model 1’ flexible endoscope, fiber gastroscope; ‘Model 2’ flexible endoscope; fiber bronchoscope and ‘Model 3’ flexible endoscope; video gastroscope and colonoscope • It also sells refurbished endoscopes of Company 9, Company 10 and Company 11 It also sells refurbished endoscopes of Company 9, Company 10 and Company 11
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Private: Domestic Company – Company 1 (5/5) W O TS
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