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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
IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT
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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
IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT
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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
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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
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Private: Domestic Company – Company 2– SWOT Analysis (5/5)
SAMPLE S
W
O
T
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