Hearing Aids Market – India November 2014
Executive Summary
Market
Hearing aids market in India is expected to grow at a CAGR of x% from INR ‘a’ bn in 2012 to INR ‘h’ bn in 2018 There are two main types of hearing aids in the market, digital hearing aids and analog hearing aids with the former being priced higher due to its superior features and advanced technology A rapid shift from analog to digital units is taking place, especially in tier I and II cities Challenges: Lack of medical personnel and low awareness Lack of standard regulatory structure and government initiatives
Drivers: Changing demographics
Drivers & Challenges
Growing target consumer group Low market penetration Changing lifestyles Government initiatives Donation programs by NGOs
Major Players
Competition
Company 1
Company 2
Company 3
Company 4
Company 5
Company 6
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•Macroeconomic Indicators •Introduction •Market Overview •Product Prices •EXIM •Drivers & Challenges •Competitive Landscape •Strategic Recommendations •Appendix HEARING AIDS MARKET IN INDIA 2014.PPT
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Macroeconomic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 15 14 d1 c1 13 b1 12 a1
c4 b4 a4
c3 b3 a3
d2 c2 b2 a2
11
Q1
Q2 2010-11
2011-12
Q3 2013-14
2012-13
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
HEARING AIDS MARKET IN INDIA 2014.PPT
Nov 2013 - Dec 2013 4
Hearing aids market is poised to grow in the coming years with emphasis on the digital aids segment Hearing Aids Market – Overview • Hearing aids market in India is expected to grow steadily and offers strong potential for existing and new players • Majority of players operating in India are foreign companies with wholly-owned subsidiaries in India India requires major foreign participation, especially in the digital hearing aid segment which accounts for ~m% of the entire market
• Digital hearing aid segment is growing rapidly and a shift is taking place from analog to digital units, especially in the larger cities • Hearing aids cost between INR ‘u’ to INR ‘y’, depending on the features and specifications Analog units typically cost between INR ‘u’ to INR ‘v’ whereas digital hearing aids cost INR ‘w’ upwards
• With awareness increasing and the social stigma attached to wearing hearing aids decreasing, the market for hearing aids is expected to grow strongly in the coming years
Market Size & Growth INR bn 8 6
4
h
+x%
a
b
2012
2013
f
d
c
g
2 0 2014e
2015e
2016e
HEARING AIDS MARKET IN INDIA 2014.PPT
2017e
2018e
5
Product Price – Company 1 (1/5) Model
Brand
Type
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Technology
MRP (INR)
6
Very few products from the Indian hearing aid market is exported out of the country… Exports – Overview
Export of Hearing Aids
• Export of hearing aids from India has increased considerably in FY 2014 compared to FY 2013 • Number of countries to which hearing aids were exported has increased over the years • Products are mostly exported to the developing countries in Region A • Strong domestic market and weak manufacturing base is responsible for fluctuating exports
INR mn
Volume
d2
15
0
a2
t1%
Country 3 p1%
r1%
2011-12
2012-13
5
0 2013-14
Export (Region-Wise: 2013-14) Country 2
s1%
c2 c1
a1
Country 1
u1%
d1
b1
2010-11
Export (Region-Wise: 2012-13)
10
b2
10 5
‘000 units
Value
Country 4
Country 6
u2% t2%
p2%
s2%
Country 8 Country 9
Country 5 Others
Country 7
Country 10 Others
r2% q2%
q1%
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Drivers & Challenges – Summary
Drivers Changing demographics Growing target consumer group
Challenges
Low market penetration
Lack of medical personnel and low awareness
Changing lifestyles
Lack of standard regulatory structure and government initiatives
Government initiatives Donation programs by NGOs
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Market Competition – Porter’s Five Forces Analysis Threat of New Entrants
Impact
Impact
Impact
Impact Bargaining Power of Suppliers
Bargaining Power of Buyers
Competitive Rivalry
Impact Threat of Substitutes
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Competitive Benchmarking – Private Companies (1/4) Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3) Operating Margin
Net Margin
%
5
a1
b1
a2
b2
0 -5 -10 -15
-a3
-b3
-20 Company 1
Company 2
Company 3
• Company 2 recorded operating margin of a2%, higher than that of Company 1 and Company 3 which recorded operating margin of a1% and -a3% respectively • Net margin was highest for Company 2 which recorded a net margin of b2%, followed by Company 1 and Company 3 which recorded net margin of b1% and -b3% respectively
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Public: Foreign Company – Company 1 (1/4) Company Information
Offices and Centres – India
Corporate Address
Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange Head Office
Products and Services Category Medical Imaging Laboratory Diagnostics Therapy Systems
Products/Services
Key People Name
Designation
Person 1
Chairman
Person 2
Chief Executive Officer and Managing Director
Person 3
Chief Financial Officer and Executive Director
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Public: Foreign Company – Company 1 (2/4) Financial Snapshot Total Income
INR mn 150,000
Key Ratios b2
a2
Net Profit / Loss c2
INR mn 10,000
d2
100,000 50,000
8,000 6,000
b1
a1
c1
d1
4,000 2,000
0
0
2010
2011
2012
2013
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
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 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
Financial Summary Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)
y-o-y change (2013-12)
Cost Ratios
• Company earned a net profit 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
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Decline
12
Public: Foreign Company – Company 1 (3/4) Key Business Segments Segment 1
Segment 2
Key Geographic Segments Segment 3
Segment 4
Region 1
Region 2
100%
100% 50% 0%
m1%
n1%
m2%
n2%
50%
m3% m4%
n3% n4%
0%
2012
2013
p1%
q1%
r1%
s1%
p2%
q2%
r2%
s2%
2010
2011
2012
2013
Business Highlights Description
Details
Overview Cath Lab Products
New Launches Share Holding Pattern
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Public: Foreign Company – Company 1 – SWOT Analysis (4/4)
S
W
O
T
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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
Head Office
Products/Services
Key People Name
Designation
Person 1
Director
Person 2
Director
Person 3
Managing Director
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Private: Domestic Company – Company 2 (2/5) Shareholders of the Company Name
Ownership Structure No. of Shares held
Category 1
Shareholder 1 Shareholder 2 Shareholder 3 Shareholder 4 100% Total
Note: AGM as of 30th Sep 2013 HEARING AIDS MARKET IN INDIA 2014.PPT
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Private: Domestic Company – Company 2 (3/5) Financial Snapshot Total Income
INR mn
140 120
Key Ratios
p2
Particulars
Net Profit / Loss r2
INR mn s2
q2
1.5
100 80 60
p1
q1
2.0
r1
s1
40
1.0 0.5
20
0
0.0 2010
2011
2012
2013
Financial Summary • The 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 • It reported debt to equity ratio of X.XX in FY 20XX, an increase of X.X per cent over FY 20YY
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
HEARING AIDS MARKET IN INDIA 2014.PPT
Decline
17
Private: Domestic Company – Company 2 (4/5) Business Highlights Description
News
Overview
Hearing Aid Products
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Private: Domestic Company – Company 2 – SWOT Analysis (5/5)
S
W
O
T
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