Market Research Report : Cardiac Pacemaker Market in India 2013

Cardiac Pacemaker Market India Cardiac Pacemaker Market – February 2013

Executive Summary Market

 Cardiac pacemaker market in India is growing at a CAGR of A % over 20‐‐‐‐‐e (volume wise)  The industry is dominated by foreign companies  Hospitals sell pacemakers as well as offer complete packages to patients Drivers:  Changing demographics

Drivers & Challenges

 High rate of cardiovascular diseases  Low market penetration L k i  Growing awareness  Changing Insurance coverage structure and business model

Trends

Competitive Landscape

Challenges:  Lack of standard regulatory structure and government initiatives  Unwillingness to spend on medical devices  Weak manufacturing base

 Product innovation  Focus on low cost goods  Significant presence of MNCs  Majority of players in the cardiac pacemaker market are foreign companies with distributors and subsidiaries in India  Due to lack of a structured regulation, entry of more players is inhibited  Major players include A, B, C

CARDIAC PACEMAKER MARKET IN INDIA 2013.PPT

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•Macroeconomic Indicators •Introduction Introduction •Market Overview •Import‐Export I tE t •Drivers & Challenges •Trends •Competitive Competitive Landscape Landscape •Strategic Recommendations •Appendix A di CARDIAC PACEMAKER MARKET IN INDIA 2013.PPT

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Economic Indicators (2/3) Gross Fiscal Deficit: Monthly 600 500 400 300 200 100 0

F

E C D

B A Sep‐‐

Oct‐‐

Nov‐‐

Dec‐‐

Jan‐‐

Feb‐‐

Exchange Rate: Half Yearly g y

56

Q

55

W

R

T

Nov ‐‐

Dec ‐‐

Y

54

E

53 52 Aug ‐‐

Sep ‐‐

Oct ‐‐

CARDIAC PACEMAKER MARKET IN INDIA 2013.PPT

Jan ‐‐ 4

Cardiac pacemaker market is poised to grow at a steady rate in the future Market Overview (1/3)

Market Size & Growth (Volume wise)

• Cardiac pacemaker market is expected to grow steadily and offers strong potential for both existing and new players • Country A along with Country B are the growing markets for cardiac rhythm management products of which pacemakers form the largest part which pacemakers form the largest part • Majority of players are foreign companies with distributors or subsidiaries in India  These companies have been able to strengthen their f h ld i h foothold in the market due to their brand recognition, k d h i b d ii reliability and technological superiority

• Domestic players make significant investments and rely on profits generated in India as well as abroad  While some players purely operate in India, others have global presence  Smaller players utilize product differentiation strategies rather than reduced pricing methods to maintain their f th ld i th foothold in the market k t

‘ 40

A%

30 20

A

B

C

20‐‐

20‐‐e

20‐‐e

D

E

F

10 0

20‐‐e

20‐‐e

20‐‐e

Market Size & Growth (Value wise) 5

B% Q

W

E

R

20‐‐

20‐‐e

20‐‐e

20‐‐e

4 3 2

T

Y

1 0

20‐‐e

20‐‐e

Healthy growth rates provide an impetus to existing yg p p g and potential players to invest in the market

CARDIAC PACEMAKER MARKET IN INDIA 2013.PPT

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Indian pacemaker market is heavily dependent on imports from the developed countries, but…

Imports – Overview

Import of Cardiac Pacemakers

• The Government of India has always liberally allowed the import of medical electronic equipments

O

1,500

 Basic custom duty on pacemakers is S %

• Over the years, import of pacemakers has been steadily increasing • Imports are mostly from the developed countries like p y p A and country B • Weak manufacturing base in responsible for imports

Import (Region Wise: 20‐‐)

a

60

500

20

0

0

20‐‐‐‐‐

20‐‐‐‐‐

20‐‐‐‐‐

20‐‐‐‐‐

Import (Region Wise: 20‐‐)

C Country t C b

P

40

d c

Country F

e

Country B

d

f

N

M

Country A

c

e

1,000

80

Country G b

f

C Country t H

Country D

Country I

Country E

Country J

Others

Others a Note: Figures are for respective financial years

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Drivers & Challenges – Summary

Drivers

Challenges

Changing demographics

Lack of standard regulatory structure Lack of standard regulatory structure and government initiatives

High rate of cardiovascular diseases

Unwillingness to spend on medical devices

Low market penetration

Weak manufacturing base

Growing awareness Changing Insurance coverage structure and business model

CARDIAC PACEMAKER MARKET IN INDIA 2013.PPT

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Trends – Summary

Improvements in Technology

Market Ch Characteristics i i Monitoring via Internet Monitoring via Internet

Reuse

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Public: Domestic Company – Company A (1/4) Company Information Corporate Address

Street A Maharashtra

T lN Tel No.

+91‐22‐12345678 91 22 12345678

Fax No.

+91‐22‐12345679

Website

www.xyz.com

Year of Incorporation

19‐‐

Ticker Symbol

‐‐

Stock Exchange

BSE

Offices and Centres – India

Place A Head Office

Products and Services Products and Services Category

Products/Services

Cardiac

Pacemakers, Leads, Pacing System Analyzer

Others

Dental Implants

Key People N Name

D i ti Designation

Mr A

MD

Mr B

CEO

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Public: Domestic Company – Company A (2/4) Financial Snapshot i i lS h Total Income

K Key Ratios i Particulars

Net Profit/Loss

y‐o‐y change 2012 (2012‐11)

2011

2010

2009

Profitability Ratios

20--

20--

20--

20--

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

• The company incurred a net loss of INR ‐‐ bn in FY 2012, as compared to net loss of INR ‐‐ bn in FY 2011 • The company reported total income of INR ‐‐ bn in FY 2012, registering an increase of % over FY 2011 registering an increase of ‐‐% over FY 2011 • The company earned an operating margin of ‐‐% in FY 2012, an increase of ‐‐ percentage points over FY 2011 • The company reported debt to equity ratio of ‐‐ in FY 2012, an increase of ‐‐% over FY 2011

Key Financial Performance Indicators Indicators

Value (‐‐/‐‐/2013)

Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) EPS (INR) PE Ratio (Absolute)

‐‐ ‐‐ ‐‐ ‐‐

Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales) Interest costs (% of Sales)

Liquidity Ratios Current Ratio Cash Ratio

Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio b i l i Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved

CARDIAC PACEMAKER MARKET IN INDIA 2013.PPT

Decline

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Public: Domestic Company – Company A (3/4) Key Business Segments

Key Geographic Segments

Product A

Country A

100%

Country B

100%

Total revenue for the company comes this segment for last K years

50% 0%

20‐‐

50%

A

C

E

G

0%

B

D

F

H

20‐‐

20‐‐

20‐‐

20‐‐

Business Highlights Description

News

Overview

• Operates with its subsidiary, ABC Limited

Business

• It has its plant located at Area 1, State XYZ • Has a licensed and installed capacity of producing B pacemakers annually • The company is also into the business of contract manufacturing

Pacemakers

• They make both internal as well as external pacemakers • The permanent pacemakers are available in various modes such as : Multi Programmable, Non‐ programmable, dual chamber, rate responsive and bifocal

Shareholders

• Promoters occupy S % of the shares whereas general public hold G % of the shares Promoters occupy S % of the shares whereas general public hold G % of the shares

Awards and Recognitions

• Received type A certification in 20‐‐ CARDIAC PACEMAKER MARKET IN INDIA 2013.PPT

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Public: Domestic Company – Company A (4/4) •G •H

•A •B •C

•I •J

S

W

O

T

•D •E •F

CARDIAC PACEMAKER MARKET IN INDIA 2013.PPT

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Appendix Ratio

Calculations

Ratio

Calculations

Operating Margin

(Operating Income/Revenues)*100

Current Ratio

Current Assets / Current Liabilities

Net Margin

(Net Profit / Revenues) *100

Cash Ratio

Profit Before Tax Margin

(Income Before Tax / Revenues *100

{(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}

q y Debt to Equity

Total Liabilities / Shareholders E it Equity

Debt to Capital Ratio

{Total Debt / (Shareholders Equity + Total Debt)}

Interest Coverage Ratio

EBIT / Interest Expense

Fixed Asset Turnover

Sales / Fixed Assets

Asset Turnover

Sales / Total Assets

Return on Equity (ROE) Return on Capital (ROCE) Return on Working Capital

(Net Income / Shareholders (N I / Sh h ld Equity)*100 EBIT / (Total Assets – Current Liabilities)*100 (EBIT / Working Capital) *100

Return on Assets

(EBIT / Total Assets)*100

Return on Fixed Assets

(EBIT / Fixed Assets) *100

Operating Costs (% of Sales)

(Operating Expenses / Sales) *100

Current Asset Turnover

Sales / Current Assets

Administration Costs (% of Sales)

(Administrative Expenses / Sales) *100

Working Capital Turnover

Sales / Working Capital

(Interest Expenses / Sales) *100

Capital Employed Turnover

Sales / (Shareholders Equity + Sales / (Shareholders Equity + Total Debt)

Interest Costs (% of Sales)

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