Medical Diagnostics – India October 2014
Executive Summary Market Overview
The medical diagnostics market in India is projected to grow at a steady rate of about 15% and is likely to reach INR 401.9bn by 2018 from INR 200 bn in 2013 Diagnostic market is characterized with presence of large number of labs in the unorganized sector which is not accredited. Drivers:
Drivers & Challenges
Rules and Regulations Trends
Competition
Challenges:
Increase in lifestyle-related diseases Changing demographics Rapid growth of India as a destination for medical tourism Increasing penetration of medical insurance Rising PE/VC investments
Lack of accreditation/certification of diagnostic centres Import tariff Manpower woes
Clinical Establishment Act 2010 Importance of accreditation National Accreditation Board for Testing and Calibration Laboratories (NABL) More Services Innovation Telemedicine
Public Private Partnerships Tie ups
Major Players
SRL Diagnostics Pvt. Ltd.
Thyrocare Diagnostics Pvt. Ltd.
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Dr. Lal Path Lab
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•Macro Economic Indicators •Introduction •Market Overview •Drivers & Challenges •Trends •Government Regulations •Competitive Landscape •Strategic Recommendations •Appendix MEDICAL 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
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Nov 2013 - Dec 2013 4
Boom in the healthcare sector is fuelling growth of the diagnostics and associated pathological laboratories
SAMPLE
• Indian diagnostics market has been experiencing immense progress for the last few years  Technological advancements and higher efficiency systems have taken the sector to greater heights  Diagnostic medical imaging and diagnostic lab services are growing at a fast pace due to growing demand for automated diagnostics
Indian Diagnostic Market
Equipment
Reagents
In Vitro Diagnostics market in India consisting of both diagnostics and reagents, is largely dominated by the global IVD companies with very few Indian companies
Services
Unorganized Organized
Diagnostic tests are available for most of the diseases but there is an urgent need for reliable diagnostics for many communicable diseases such as tuberculosis, malaria, dengue, hepatitis B and C
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Diagnostics labs are witnessing healthy growth on the backdrop of huge expansion & improvement in technology Market Overview
Diagnostic Market Size & Growth
• Better physician knowledge coupled with availability of better technology in the field of diagnostics is causing the Indian market to grow • Tier II and Tier III cities are in need of improved healthcare infrastructure which is an opportunity for large corporate players Rise in lifestyle diseases has caused medical diagnostics market to grow immensely in these cities
• Approximately x1 labs are present in the unorganized sector
Diagnostic Market- Split (2014) Segment 1
INR bn
60
x%
40
c
b
a
d
e
f
20 0 20--
20--e
20--e
20--e
20--e
20--e
Diagnostic Market- Segmentation (2014) Segment 1
Segment 2
Segment 2
X% India has more than y1 labs
X1%
X2% Y%
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Drivers & Challenges
Drivers
Challenges
Increase in lifestyle-related diseases
Lack of accreditation/certification of diagnostic centres
Changing demographics
Import tariff
Rapid growth of India as a destination for medical tourism
Manpower woes
Increasing penetration of medical insurance
Rising PE/VC investments
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Trends – Summary
More Services Innovation Trends `
Telemedicine Public Private Partnership Tie-ups
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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
d
z1
s
a3
a1
r
c b
a4
a2
e
Particulars
Net Profit/Loss
z2
z4
z3
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
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Decline
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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%
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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
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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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