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Objective

To study the various aspects of the Health care

industry in India with respect to the Marketing
segmentation, issues at hand and opportunities of
growth.

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2rief Overview
u The Healthcare Sector comprises of
X Hospitals
X Diagnostics
X Pathology
X Equipment and Supplies
X Medical Tourism
X Telemedicine, etc
u It is one the prominent contributors to Indias GDP.
u It attracts large number of domestic as well as international

players
u India has become an attractive destination for
X
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Medical Tourism
Clinical Studies
Research and Development Programs

u There is massive growth potential and scope for expansion


  
  


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HealthCare : Market Size

u The HealthCare Industry is presently worth $50bn.

u Second largest service sector employer in the

country.
u Provides jobs for 4.5mn people directly or indirectly.
u Ratings agency Sitch estimates doubling of size of
the sector to $100bn by 2015.

Indian HealthCare : The Growth Story

u A sudden in paradigm shift in the last five years.
u This shift has become visible only in the last two

years.
u A shift from an unorganized to an organized
structure.
u It was earlier seen only as a social sector but now
there is a move towards corporatization.
u Apollo pioneered the trend of corporate hospitals in
India.

actors for the HealthCare boom in India

u Strong Indian Economy

u Increasing options for Healthcare inancing
u Increasing Opportunities in Healthcare delivery
X 2etter Profitability (15-20% E2IDTA)
X Earlier 2reak Even (2-3 years)
X Medical Tourism
X Increasing demand from within the county

Increasing Demand from Within the Country

Top Health Care Companies and Hospital Chains



u APOLLO LIE
u SUN HEALTHCARE
u NICHOLAS PIRAMAL INDIA PVT. LTD
u WIPRO GE HEALTHCARE
u SERUM INSTITUTE O INDIA LTD
u CIPLA
u CADILLA HEALTHCARE
u RAN2AXY
u ORTIS HEALTHCARE

Emerging & Re-Emerging Diseases

u Pneumonia - The deadliest Acute respiratory

infections (ARIs) are responsible for most deaths in

the developing nations.
u HIV/AIDS - Over 33 million people are living with

HIV/AIDS worldwide. There is still no cure on the

horizon. Worst affected is sub-Saharan Africa

Emerging & Re-Emerging Diseases(contd)

u Diarrhea - It imposes a heavy burden on developing

countries - accounting for 1.5 billion bouts of illness

a year in children under five. The burden is highest
in deprived areas where there is poor sanitation,
inadequate hygiene and unsafe drinking water.
u Tuberculosis (T2) - a disease once thought to be
under control, has bounced back with a vengeance
to kill 1.5 million people a year - even more when in
combination with HIV/AIDS. Nearly two billion
people - one-third of the world's population - have
latent T2 infection

Emerging & Re-Emerging Diseases(contd)

u Influenza - It is a greatly misunderstood disease.

Each year we confront seasonal, or interpandemic

influenza. Seasonal influenza kills about 250,000 to
300,000 people each year throughout the world
u Measles - It is the most contagious disease known to

man. It is a major childhood killer in developing

countries - accounting for about 900 000 deaths a
year

MIn an era of increasing globalization, emerging

infectious diseases are everybody's problem
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Indian Healthcare Infrastructure

u As on December 2010, there were 335 medical

colleges which were recognized by the Indian

Medical Council.
u As on 2001, a total of 5, 39, 00 M22S doctors were
registered with the Medical council number of
Physicians and specialists available is less than the
estimated requirements.
u The current doctor population ratio is 1:1800.
u Though at present approximately 50000 doctors are
being produced annually in the nation, but the
number needs to go up.

Indian Healthcare Infrastructure(contd)

u 2y 2020, the Indian healthcare industry is estimated

to be worth US$ 275.6 billion. Currently, 8 per cent

of Indias GDP is spent on healthcare. India needs to
spend at least US$ 80 billion more in the next five
years to meet targets, according to Mr Pradipta K
Mohapatra, Chairman, Executive & 2usiness
Coaching oundation India Ltd and Past Chairman,
Confederation of Indian Industry (CII), Southern
Region.

Survey Analysis on Infrastructure

u 51% of the surveyed population believes that there is

considerable difference between performances of

hospitals in their region.
u 39% of the population believes that quality of govt.
hospitals is bad and 35% of population believes that
the quality is just an average. 18% believes that the
quality of the govt. hospitals is very bad. Only 8%
believes that quality of govt. hospitals are good.

Survey Analysis on Infrastructure(contd)

u 57% of the population believes that quality of

private hospitals is good and 22% of population

believes that the quality is just an average. 21%
believes that the quality of the private hospitals is
very good.
u 83% of the population is of the opinion that cost of

private hospital is quite expensive.

 
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Segmentation
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MEDICAL TOURISM

MEDICAL TOURISM
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ADVANTAGES O INDIA
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COMPETITION
u Thailand, Singapore, Malaysia and Philippines are
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the major competitors

Thailand is more popular for cosmetic surgery.
In complex procedures Singapore has a technology
advantage.
Cost in Thailand is also less than Singapore
The Malaysian government is aggressively promoting
medical tourism.

SOURCE MARKET

   

 

SOURCE O INANCIAL SUPPORT

   

 

AYURVEDA
u INTRODUCTION
u Increasing popularity in Western Countries
u Availability of good infrastructure
u HER2AL TOURISM IN KERALA
u Kerala is becoming one of the major destination of

herbal tourism
u Kerala has an excellent network of hospitals
u International standard of facilities

SURGICAL EQUIPMENTS
u World market growing at a rate of 6% from 2010
u Market is highly price sensitive.
u Good network of distribution channels
u Powered Instruments :- 47% of the total market
u Non-Powered Surgical Instruments:- blades,

scissors etc
u Wound Closure Devices:- staplers, wound closure
strips etc

Pharmaceuticals in India
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Pharmaceuticals in India (contd)

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u Purely Indian pharmaceutical companies is fairly low.
u Mainly operated, controlled by dominant foreign companies having

subsidiaries in India.
u In 2002, over 20,000 registered drug manufacturers in India sold $9

billion worth of formulations & bulk drugs.

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Overview (contd..)
u Pharmaceutical companies operating in India, even the multinationals,

employ Indians at all levels.

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u Globally, India currently holds a modest 1-2% share, growing at around

10% per year.

u There are 74 U.S. DA-approved manufacturing facilities in India.
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u The industry is being forced to adapt its business model to recent

changes in the operating environment.

u The 1st & most significant change was the January 1, 2005 enactment
of an amendment to Indias patent law that reinstated product
patents for the first time since 1972.
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u The new patent legislation has resulted in fairly clear segmentation.

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u Indian companies are adapting to the new environment.
u irms have made their ways into the global market,
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u Those who can afford it, have set their sights on an even

higher goal: new molecule discovery.

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programs or have formed alliances.

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u The outlook for small and medium enterprises (SME) is not as bright. The excise
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tax of 16% on the MRP of their products. Was a major issue.

Larger companies were cutting back on outsourcing & business is shifting to
companies with facilities in tax-free states of - Himachal Pradesh, Jammu &
Kashmir, Uttaranchal & Jharkhand.
2ut in a matter of a couple of years the excise duty was revised on two occasions,
first it was reduced to 8% & then to 4%. As a result, the benefits of shifting to a tax
free zone were negated.
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As SMEs wrestled with the tax structure, they were also scrambling to meet the
deadline for compliance with the revised Schedule M Good Manufacturing
Practices (GMP).
While this should be beneficial to consumers & the industry at large, SMEs have
been finding it difficult to find the funds to upgrade their manufacturing plants,
resulting in the closure of many facilities.

Challenges
u All of these changes are ultimately good for the Indian pharmaceutical industry,

which suffered in the past from inadequate regulation and large quantities of
spurious drugs.

u They force the industry to reach global competitiveness, however they have also

expose some of the inadequacies in the industry.

u Its main weakness is an underdeveloped new molecule discovery program.

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u The drug discovery process is further hindered by a dearth of qualified molecular

biologists.
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u The Indian government has recognized R&D as an important driver in the

growth of their pharmaceutical businesses & conferred tax deductions for

expenses related to research & development.
u They have granted other concessions as well, such as reduced interest rates

for export financing and a cut in the number of drugs under price control.
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u Indias greatest strengths lie in its people.
u India also boasts of well-educated, English-speaking labour force that is

the base of its competitive advantage.

u Although molecular biologists are in short supply, there are a number of

talented chemists who are equally as important in the discovery process.

u In addition, there has been a reverse brain drain effect in which

scientists are returning from abroad to accept positions at lower salaries

at Indian companies.
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u Indias wealth of people extends benefits to another part of the drug

commercialization process as well.

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Survey Analysis & Recommendations

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