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In Vitro Diagnostics Market – India

October 2014
Executive Summary

• 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,
Market 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: Challenges:
 High patient population growth rate  Faulty regulations results in disorientation
 Increasing number of hospitals and diagnostic labs of IVD products
Drivers &  Innovation by pharmaceutical companies enhances
 Laboratories without accreditation
demand for IVD
Challenges  Unhealthy lifestyle leading to chronic diseases
 Demand for cost effective, faster and sensitive results
 Increased affluence
 Increased healthcare awareness

• Automation • Capillary electrophoreses (CE) based CLIA

• Remote data acquisition • Electrochemiluminescence immunoassay (ECLIA)
Trends • Enzyme-linked fluorescence assay (ELFA) • Direct access testing
• Chemiluminescence immunoassay (CLIA) • Rapid accurate quantification at point of care

Key Players
Company 1 Company 2 Company 3 Company 4 Company 5
Competition
Company 6 Company 7 Company 8 Company 9 Company 10

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT 2

•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 3
Economic Indicators (1/3)
GDP at Factor Cost: Quarterly
INR tn
c4
15
c3 b4
d1 d2 b3
14 a4
c1 c2
a3
13 b1 b2
12 a1 a2

11
Q1 Q2 Q3 Q4
2010-11 2011-12 2012-13 2013-14

Inflation Rate: Monthly

%
2
r
1 p s
q
0

-1

-2 t

Jul 2013 - Aug 2013 Aug 2013 - Sep 2013 Sep 2013 - Oct 2013 Oct 2013 - Nov 2013 Nov 2013 - Dec 2013

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT 4

In vitro diagnostics has shown tremendous potential in India
and…
Market Overview – In Vitro Diagnostics Market Size and Growth
• Indian IVD market was valued at INR ‘a’ bn in 20-- INR bn
and is expected to reach INR ‘f’ bn by 20--, growing at
60 x% f
a CAGR of x% e
d
• Indian IVD market is the third largest IVD market in 40 c
b
a
Asia after Country 1 and Country 2
20
• Private players contribute u% of the market while the
rest v% is contributed by public players 0
20-- 20--e 20--e 20--e 20--e 20--e
• Various factors such as rising prevalence of diseases,
growing affordability among patients, and increasing
Indian IVD Market – Segments
penetration of health insurance have resulted in
growth in the demand for diagnostic services s%
q% Segment 1
• Indian market has traditionally been import p% r%
Segment 2
dependent but is now experiencing a transition l% Segment 3
towards domestic manufacturing o%
Segment 4
• In terms of segments, Segment 1 and Segment 2 Segment 5
have been the largest contributors followed by Segment 6
Segment 3 and Segment 4 n% Segment 7
 The four segments together contribute more than y% of Segment 8
m%
the overall market
Figures are for 2011

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT 5

…is expected to consistently grow with greater emphasis on
reagents
Market Overview – In Vitro Diagnostics Market Size and Growth – Instruments
• Reagents contribute a greater share to overall INR bn
revenues in the IVD market than instruments f1
15 x1%
 Instruments were pegged at INR a1 bn in 20-- and this is e1
d1
expected to grow to INR f1 bn by 20-- 10 c1
b1
 Reagents were valued at INR a2 bn in 20-- and is expected a1
to reach INR f2 bn by 20-- 5
• Market for IVD instruments is still import dependent
0
with majority of the analyzers being sourced from 20-- 20--e 20--e 20--e 20--e 20--e
other countries
 Most of the analyzers are procured from the Country 1, Market Size and Growth – Reagents
Country 2, and lately from Country 3 as well
INR bn
 Companies from these countries have their sales and
service points in most cities in India and hence, procuring 40
f2
of analyzers is done within a few weeks x2% e2
30 d2
• Automation has become a standard norm in the c2
b2
industry and new demand in the market are mostly 20 a2
for such analyzers 10
• Demand for reagents continue to grow especially due
0
to the need to cater to a large installed base of IVD
20-- 20--e 20--e 20--e 20--e 20--e
instruments
Elisa Kits and Rapid tests also constitute a part of the overall IVD market

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT 6

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 Faulty regulations leading to
diseases 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 7

Trends – Summary

Automation

Remote data acquisition

Enzyme-linked fluorescence assay (ELFA)

Chemiluminescence immunoassay (CLIA)

Trends `

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 8

Porter’s Five Forces Analysis
SAMPLE
Impact
x
Threat of New Entrants

Impact Impact Impact

x x x

Bargaining Power of Suppliers Competitive Rivalry Bargaining Power of Buyers

Impact
x

Threat of Substitutes

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT 9

Competitive Benchmarking (2/5)
SAMPLE
Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3)

% Operating Margin Net Margin

40
a1
30
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

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT 10

Public: Domestic Company – Company 1
(1/5)
Company Information
SAMPLE 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
VC and VC of Share Transfer
Person 2
Committee
Person 3 Director
Person 4 Director

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT 11

 Public: Domestic Company – Company 1
(2/5)
Financial Snapshot
SAMPLE Key Ratios
y-o-y change
Total Income Net Profit/Loss Particulars 2013 2012 2011 2010
(2013-12)
a4 Profitability Ratios
e a2 s
a3 Operating Margin
d a1 Net Margin
r
c z4 Profit Before Tax Margin
z2 z3 q
b z1 Return on Equity
Return on Capital Employed
a p Return on Working Capital
2010 2011 2012 2013 Return on Assets
Financial Summary Return on Fixed Assets
Cost Ratios
• The company earned a net profit of INR x1 mn in FY 2013, as compared to
Operating costs (% of Sales)
net profit of INR x2 mn in FY 2012
Administration costs (% of
• The company reported total income of INR y1 mn in FY 2013, registering an Sales)
increase of y2% over FY 2012 Interest costs (% of Sales)
• The company earned an operating margin of z1% in FY 2013, an increase of Liquidity Ratios
z2percentage points over FY 2012 Current Ratio
• The company reported debt to equity ratio of a1 in FY 2013, an increase of Cash Ratio
a3% over FY 2012 Leverage Ratios
Debt to Equity Ratio
Key Financial Performance Indicators Debt to Capital Ratio
Interest Coverage Ratio
Indicators Value (20/03/2014) Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved Decline

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT 12

Public: Domestic Company – Company 1
(3/5)
Key Business Segments
SAMPLE Key Geographic Segments

Segment 1 Segment 2 Region 1 Region 2

C% a1% C% x1%

B% b1% b2% b3% b4% B% y1% x2% x3% x4%

A% A%
2010 2011 2012 2013 2010 2011 2012 2013

Business Highlights
Description News

• The company has operations in Country A, Country B and Country C that offers treatment for acute and
Overview chronic diseases in primary, secondary and tertiary care sectors

• Specializes in 50 specialties comprising cardiac sciences, oncology, radiology and imaging,

gastroenterology, neurosciences, orthopedics, critical care services and in minimally invasive surgeries
Services and transplantation

• Operates retail pharmacy outlets all across the country

13
Public: Domestic Company – Company 1 – SWOT Analysis
(5/5) SAMPLE

S W

O T

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT 14

Private: Domestic Company – Company 2
(1/5)
Company Information
SAMPLE 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
Instant Mixes
Person 2 Director
Person 3 Director
Others
Person 4 Director

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT 15

Private: Domestic Company – Company 2
(2/5)
Shareholders of the Company
SAMPLE Ownership Structure

Segment Segment
Name No. of Shares held
Segment

19.0%

57.4%
23.6%

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT 16

Private: Domestic Company – Company 2
(3/5)
Financial Snapshot
SAMPLE Key Ratios
y-o-y change
Total Income Net Profit/Loss Particulars
(2013-12)
2013 2012 2011 2010

Profitability Ratios
a3 a4 Operating Margin
t f
a2 Net Margin
s e Profit Before Tax Margin
a1 d Return on Equity
r Return on Capital Employed
b3 b4 c Return on Working Capital
b1 b2
q b Return on Assets
Return on Fixed Assets
p a
Cost Ratios
2008 2009 2010 2011 Operating costs (% of Sales)
Administration costs (% of
Sales)
Financial Summary Interest costs (% of Sales)
• The company earned a net profit of INR x1 mn in FY 2011, as Liquidity Ratios
Current Ratio
compared to net profit of INR x2 mn in FY 2010
Cash Ratio
• The company reported total income of INR x3 mn in FY 2011, Leverage Ratios
registering an increase of x4% over FY 2010 Debt to Equity Ratio
Debt to Capital Ratio
• The company earned an operating margin of x5% in FY 2011, Interest Coverage Ratio
an increase of x6 percentage points over FY 2010 Efficiency Ratios
• The company reported debt to equity ratio of x7 in FY 2011, a Fixed Asset Turnover
decrease of x8% over FY 2010 Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved Decline

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT 17

Private: Domestic Company – Company 2
(3/5)
Business Highlights
SAMPLE
Description 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

• Has core specialties in heart care, brain and spine, bone and joint and minimal access surgery
Facilities
• Provides advanced medical diagnostics and treatment with personal care

• Obtained NABH accreditation within one and a half years of beginning operation in India
Recognitions
• Hospital A, Region 1, Hospital B, Region 2 has been NABH accredited

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT 18

Private: Domestic Company – Company 2– SWOT Analysis
(5/5) SAMPLE

S W

O T

IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT 19

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IN VITRO DIAGNOSTICS MARKET IN INDIA 2014.PPT 20