Market Research Report : In vitro diagnostics market in india 2014 - Sample

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In Vitro Diagnostics Market – India October 2014

Executive Summary

Market

• In vitro diagnostics market in India was pegged at INR ‘a’ bn in 20-- and is expected to grow at a CAGR of x% till 20--e • Based on area of application IVD may be broadly segmented into Segment 1, Segment 2, Segment 3, Segment 4, Segment 5, Segment 6, Segment 7 and Segment 8 • Segment 1 and Segment 2 have been the largest contributors to the overall market followed by Segment 3 and segment 4

Drivers:

Drivers & Challenges

Trends

Challenges:

 High patient population growth rate  Increasing number of hospitals and diagnostic labs  Innovation by pharmaceutical companies enhances demand for IVD  Unhealthy lifestyle leading to chronic diseases  Demand for cost effective, faster and sensitive results  Increased affluence  Increased healthcare awareness

• Automation • Remote data acquisition • Enzyme-linked fluorescence assay (ELFA) • Chemiluminescence immunoassay (CLIA)

 Faulty regulations results in disorientation of IVD products  Laboratories without accreditation

• Capillary electrophoreses (CE) based CLIA • Electrochemiluminescence immunoassay (ECLIA) • Direct access testing • Rapid accurate quantification at point of care Key Players

Competition

Company 1

Company 2

Company 3

Company 4

Company 5

Company 6

Company 7

Company 8

Company 9

Company 10

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT

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•Macroeconomic Indicators •Introduction •Market Overview •Drivers & Challenges •Laws and Guidelines •Trends •Competitive Landscape •Future Outlook •Strategic Recommendations •Appendix IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT

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Economic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 15

13

d1 c1 b1

12

a1

14

c4 b4 a4

c3 b3 a3

d2 c2 b2 a2

11

Q1

Q2 2010-11

2011-12

2012-13

Q3 2013-14

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

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT

Nov 2013 - Dec 2013 4

In vitro diagnostics has shown tremendous potential in India and…

Market Overview – In Vitro Diagnostics • Indian IVD market was valued at INR ‘a’ bn in 20-and is expected to reach INR ‘f’ bn by 20--, growing at a CAGR of x% • Indian IVD market is the third largest IVD market in Asia after Country 1 and Country 2 • Private players contribute u% of the market while the rest v% is contributed by public players • Various factors such as rising prevalence of diseases, growing affordability among patients, and increasing penetration of health insurance have resulted in growth in the demand for diagnostic services • Indian market has traditionally been import dependent but is now experiencing a transition towards domestic manufacturing • In terms of segments, Segment 1 and Segment 2 have been the largest contributors followed by Segment 3 and Segment 4

Market Size and Growth INR bn

60

x%

40

b

a

d

c

f

e

20 0 20--

20--e

20--e

20--e

20--e

20--e

Indian IVD Market – Segments p%

s%

q%

Segment 1

r%

Segment 2 l%

o%

Segment 3 Segment 4 Segment 5 Segment 6

n%

 The four segments together contribute more than y% of the overall market IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT

Segment 7 m%

Segment 8 Figures are for 2011 5

…is expected to consistently grow with greater emphasis on reagents Market Overview – In Vitro Diagnostics • Reagents contribute a greater share to overall revenues in the IVD market than instruments  Instruments were pegged at INR a1 bn in 20-- and this is expected to grow to INR f1 bn by 20- Reagents were valued at INR a2 bn in 20-- and is expected to reach INR f2 bn by 20--

• Market for IVD instruments is still import dependent with majority of the analyzers being sourced from other countries  Most of the analyzers are procured from the Country 1, Country 2, and lately from Country 3 as well  Companies from these countries have their sales and service points in most cities in India and hence, procuring of analyzers is done within a few weeks

• Automation has become a standard norm in the industry and new demand in the market are mostly for such analyzers • Demand for reagents continue to grow especially due to the need to cater to a large installed base of IVD instruments

Market Size and Growth – Instruments INR bn

15

x1%

10

b1

a1

d1

c1

e1

f1

5 0 20--

20--e

20--e

20--e

20--e

20--e

Market Size and Growth – Reagents INR bn 40

x2% 30 20

b2

a2

c2

d2

e2

f2

10 0

20--

20--e

20--e

20--e

20--e

20--e

Elisa Kits and Rapid tests also constitute a part of the overall IVD market

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Drivers & Challenges Drivers High patient population growth rate Increasing number of hospitals and diagnostic labs Innovation by pharmaceutical companies

Challenges

Unhealthy lifestyle leading to chronic diseases

Faulty regulations leading to disorientation of IVD products

Demand for cost effective, faster and sensitive results

Laboratories without accreditation

Increased affluence Increased healthcare awareness

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT

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Trends – Summary Automation Remote data acquisition Enzyme-linked fluorescence assay (ELFA)

Trends `

Chemiluminescence immunoassay (CLIA) Capillary electrophoreses (CE) based CLIA

Electrochemiluminescence immunoassay (ECLIA) Direct access testing

Rapid accurate quantification at point of care IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT

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SAMPLE

Porter’s Five Forces Analysis

Impact x Threat of New Entrants

Impact x

Bargaining Power of Suppliers

Impact x

Competitive Rivalry

Impact x

Bargaining Power of Buyers

Impact x

Threat of Substitutes

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SAMPLE

Competitive Benchmarking (2/5)

Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3) Operating Margin

%

Net Margin

40 30

a1 b1

20 10

a2

b2

a3

b3

0

Company A

Company B

Company C

• Company A recorded operating margin of x1%, higher than that of Company B which recorded operating margin of y2% but lower than that of Company C which recorded operating margin of z3% • Net margin for Company A , Company B and Company C are a1%, b2% and c3% respectively, wherein Company A has the highest net margin among these three companies

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Public: Domestic Company – Company 1 (1/5)

SAMPLE

Company Information

Offices and Centres – India

Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange

Mumbai

Head Office

Products and Services Category

Products/Services

Key People Name

Designation

Person 1

MD and Executive Director

Person 2

VC and VC of Share Transfer Committee

Person 3

Director

Person 4

Director

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Public: Domestic Company – Company 1 (2/5)

SAMPLE Key Ratios

Financial Snapshot Total Income

a4

a2

e

r

c z1

b

s

a3

a1

d

Particulars

Net Profit/Loss

z2

z3

z4

a

q p

2010

2011

2012

2013

Financial Summary • The company earned a net profit of INR x1 mn in FY 2013, as compared to net profit of INR x2 mn in FY 2012 • The company reported total income of INR y1 mn in FY 2013, registering an increase of y2% over FY 2012 • The company earned an operating margin of z1% in FY 2013, an increase of z2percentage points over FY 2012 • The company reported debt to equity ratio of a1 in FY 2013, an increase of a3% over FY 2012

Key Financial Performance Indicators Indicators

Value (20/03/2014)

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

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT

Decline

12

Public: Domestic Company – Company 1 (3/5)

SAMPLE

Key Business Segments Segment 1 C%

a1%

B%

b1%

Key Geographic Segments

Segment 2

b2%

Region 1

b3%

b4%

A%

Region 2

C%

x1%

B%

y1%

x2%

x3%

x4%

2010

2011

2012

2013

A% 2010

2011

2012

2013

Business Highlights Description

News

Overview

• The company has operations in Country A, Country B and Country C that offers treatment for acute and chronic diseases in primary, secondary and tertiary care sectors

• Specializes in 50 specialties comprising cardiac sciences, oncology, radiology and imaging, Services

gastroenterology, neurosciences, orthopedics, critical care services and in minimally invasive surgeries and transplantation

• Operates retail pharmacy outlets all across the country

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Public: Domestic Company – Company 1 – SWOT Analysis (5/5)

SAMPLE S

W

O

T

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Private: Domestic Company – Company 2 (1/5)

SAMPLE

Company Information

Offices and Centres – India

Corporate Address

Tel No. Fax No. Website Year of Incorporation

Mumbai

Head Office

Products and Services Category

Products/Services

Key People Ready Meals

Name

Designation

Person 1

Director

Person 2

Director

Person 3

Director

Person 4

Director

Instant Mixes

Others

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Private: Domestic Company – Company 2 (2/5)

SAMPLE

Shareholders of the Company

Name

Ownership Structure

No. of Shares held

Segment Segment

Segment

19.0%

23.6%

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT

57.4%

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Private: Domestic Company – Company 2 (3/5)

SAMPLE

Financial Snapshot Total Income

Net Profit/Loss a3

t s

Key Ratios

a2

f d

b1

b2

b3

b4

c b

p

a 2008

2009

2010

y-o-y change (2013-12)

2013

2012

2011

2010

Profitability Ratios e

a1

r q

a4

Particulars

2011

Financial Summary

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)

• The company earned a net profit of INR x1 mn in FY 2011, as compared to net profit of INR x2 mn in FY 2010

Liquidity Ratios

• The company reported total income of INR x3 mn in FY 2011, registering an increase of x4% over FY 2010

Leverage Ratios

• The company earned an operating margin of x5% in FY 2011, an increase of x6 percentage points over FY 2010 • The company reported debt to equity ratio of x7 in FY 2011, a decrease of x8% over FY 2010

Current Ratio Cash Ratio 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

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT

Decline

17

Private: Domestic Company – Company 2 (3/5) Business Highlights Description

SAMPLE News

• Company 2 has hospital network in Country A, Country B and Country C and is primarily headquartered in Overview

Country D • Presently located in 10 cities in India having hospitals in Region 1, Region 2 and Region 3

Facilities

• Has core specialties in heart care, brain and spine, bone and joint and minimal access surgery • Provides advanced medical diagnostics and treatment with personal care

Recognitions

• Obtained NABH accreditation within one and a half years of beginning operation in India • Hospital A, Region 1, Hospital B, Region 2 has been NABH accredited

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT

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Private: Domestic Company – Company 2– SWOT Analysis (5/5)

SAMPLE S

W

O

T

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