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X-Ray Equipment Market – India February 2015
Executive Summary
Market
Drivers & Challenges
Government Regulations
X-ray equipment market in India is expected to grow at a CAGR of ‘x’% from 2013 to 2019e in value-terms and at a CAGR of ‘y’% in volume-terms during the same period Market is segmented into analog and digital models with digital models growing at a significantly higher rate compared to analog models Superior features of digital models have made them the more preferred alternative and they are rapidly replacing analog models in most medical establishments
Drivers: Growing number of hospitals and diagnostic centers Increasing occurrence of road accidents Increasing number of osteoporosis patients Advancements in technology and innovation Convenient and time saving Installation procedure Personnel requirements and duties Safety measures Major Domestic Players
Competition
Challenges: Hazardous radiation effects Poor after sales service
Major Foreign Players
Company 1
Company 3
Company 5
Company 2
Company 4
Company 6
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•Macroeconomic Indicators •Introduction •Market Overview •Export-Import •Drivers & Challenges •Government Regulations •Competitive Landscape •Strategic Recommendations •Appendix X-RAY EQUIPMENT MARKET IN INDIA 2015.PPT
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Macroeconomic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 16 15
a4
14
a3 a2 a1
13
d3 d2 d1
c3 c2 c1
b3 b2 b1
12
Q1
Q2 2011-12
2012-13
2013-14
Q3 2014-15
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
X-RAY EQUIPMENT MARKET IN INDIA 2015.PPT
Nov 2013 - Dec 2013 4
Market Overview (1/7) X-Ray Equipment Market – Overview (1/2) • Indian X-ray equipment market is showing steady growth and provides strong opportunities to existing and potential players • In terms of value, the market is forecasted to grow at a CAGR of ‘x’% between 2013 and 2019, reaching INR ‘k’ mn in 2019 from INR ‘d’ mn in 2013 • Analog equipment which presently accounts for a large share of the market will face low demand in future • Indian x-ray equipment market is less developed than the US, European, and Chinese markets as these markets transitioned to the digital technology at a much faster rate
Market Size & Growth (Value-Wise) INR mn
Segment 1
Segment 2
5,000
+x%
4,000 3,000
a a2%
2,000 1,000
a1%
b
c
g
h
i
j
d
f
g2%
h2%
i2%
j2%
k k2%
b2%
c2%
d2%
f2%
b1%
c1%
d1%
f1%
g1%
h1%
i1%
j1%
k1%
2011
2012
2013
2014e
2015e
2016e
2017e
2018e
2019e
0 2010
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Earnings arising out of exports of x-ray equipments has continued to be higher… Exports – Overview
Export of X-ray Equipments
• Unlike most other medical instruments, in case of xray equipment, exports are clearly higher than imports
8,000
Domestic manufacturers earn high revenues by exporting their products However, in 2013-14 exports experienced a slight decline compared to 2012-13
6,000
• Country 1 has been the biggest export hub for Indian manufacturers followed by Country 2 and Country 3
0
Export – Value (Region Wise: 2012-13)
a1%
Country 3 Country 4 Country 5
c1% b1%
‘000 units s2
60
q2 p1
2,000
r1 q1
s1
40 20 0
2010-11
2011-12
2012-13
2013-14
Export – Value (Region Wise: 2013-14) Country 1
i2%
Country 2
g2% d2% f2% h2%
Country 3 a2%
Country 4 Country 5
c2%
Country 6
Country 6
Country 7
Country 7
Others
100 80
4,000
Country 2
g1% h1%
Value r2
p2
Country 1
i1% f1% d1%
Volume
INR mn
b2%
X-RAY EQUIPMENT MARKET IN INDIA 2015.PPT
Others
6
Drivers & Challenges – Summary
Drivers Growing number of hospitals and diagnostic centers
Challenges
Increasing occurrence of road accidents
Hazardous radiation effects
Increasing number of osteoporosis patients
Poor after sales service
Advancements in technology and innovation Convenient and time saving
X-RAY EQUIPMENT MARKET IN INDIA 2015.PPT
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Government Regulations – Summary
Installation procedure
Government Regulations Personnel requirements and duties
Safety measures
X-RAY EQUIPMENT MARKET IN INDIA 2015.PPT
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Market Competition – Porter’s Five Forces Analysis Impact High Threat of New Entrants
Impact Low
Bargaining Power of Suppliers
Impact Medium
Competitive Rivalry
Impact Medium
Bargaining Power of Buyers
Impact Low Threat of Substitutes
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Competitive Benchmarking (1/4) Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3) Operating Margin
Net Margin
%
25
a1
20 15 b1
10 5
a2
0 Company 1
b2 Company 2
a3
b3 Company 3
• Allengers Medical Systems Ltd. recorded operating margin of a1%, higher than that of Philips Electronics India Ltd. and Agfa HealthCare India Pvt. Ltd. which recorded operating margin of a3% and a2% respectively • Net margin was highest for Allengers Medical Systems Ltd. which recorded a net margin of b1%, followed by Philips Electronics India Ltd. and Agfa HealthCare India Pvt. Ltd. which recorded net margin of b3% and b2% 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
a2
b2
Net Profit / Loss
INR mn 10,000
c2
d2
100,000 50,000
8,000 6,000
b1
a1
c1
d1
4,000 2,000
0
0
2011
2012
2013
2014
Financial Summary • It reported total Income of INR XX mn in FY 20XX, registering a decrease 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
2014
2013
2012
2011
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 (2014-13)
Cost Ratios
• 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
Indicators
Particulars
Value (05/01/2015)
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
X-RAY EQUIPMENT MARKET IN INDIA 2015.PPT
Decline
12
Public: Foreign Company – Company 1 (3/4) Key Business Segments Infrastructure
Key Geographic Segments
Energy
Industry
Healthcare
India
Outside India
100%
100% 50% 0%
a1%
a2%
a3%
b1%
b2%
b3%
c1% d1%
c2% d2%
c3% d3%
2012
2013
2014
50% 0%
p1%
q1%
r1%
s1%
p2%
q2%
r2%
s2%
2011
2012
2013
2014
Business Highlights Description
Details
Overview
X-Ray Products
New Launches
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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 Category
Head Office
Products/Services
Key People Radiology Name
Designation
Cardiology
Person 1
Chairman and Managing Director
Surgery
Person 2
Additional Managing Director
Neurology
Person 3
Whole-Time Director
Person 4
Whole-Time 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
Category 2
Category 3
Category 4
Shareholder 1 Shareholder 2
b%
c% d%
Shareholder 3 Shareholder 4 Shareholder 5
Shareholder 6 Shareholder 7 a% Shareholder 8 Total
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Private: Domestic Company – Company 2 (3/5) Financial Snapshot
Key Ratios
Total Income
INR mn
b2
a2
c2
b1
a1
150 100
1,000 500
INR mn
d2
2,000 1,500
Net Profit / Loss
c1
d1
50 0
0
-50 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
Particulars
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
X-RAY EQUIPMENT MARKET IN INDIA 2015.PPT
Decline
17
Private: Domestic Company – Company 2 (4/5) Business Highlights Description
News
Overview
X-Ray Products
X-RAY EQUIPMENT MARKET IN INDIA 2015.PPT
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Private: Domestic Company – Company 2 – SWOT Analysis (5/5)
S
W
O
T
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