ELMED INSTRUMENTS

GLOBAL MARKETING PROJECT

SUBMITTED TO: SIR IMRAN QURESHI IRFAN2068/BBA-16

ELMED INSTRUMENTS

TABLE OF CONTENTS
Contents
Surgical Industry of Pakistan .................................................................................................................... 3 Elmed Surgical Instruments ..................................................................................................................... 3 COUNTRIES ANALYSIS SELECTED FOR ELMED INSTRUMENTS ................................................................... 4 BRAZIL ................................................................................................................................................. 5 PEST ANALYSIS OF BRAZIL: ....................................................................................................................... 6 POLITICAL FACTORS: ............................................................................................................................ 6 ECONOMIC FACTORS: .......................................................................................................................... 6 SOCIAL FACTORS .................................................................................................................................. 6 TECHNOLOGICAL FACTORS: ................................................................................................................. 6 BRAZIL SURGICAL MARKET REVIEW: ........................................................................................................ 7 IMPORTS OF MEDICAL EQUIPMENT ......................................................................................................... 7 HEALTH SERVICES IN BRAZIL............................................................................................................... 8 REQUIREMENTS TO ENTRY BRAZILIAN MARKET: .............................................................................. 8 Documents Required for Product Registration, Importation and Sales in Brazil ..................................... 8 UNITED KINGDOM ................................................................................................................................... 9 UK MARKET OVERVIEW ......................................................................................................................... 10 PEST ANALYSIS OF UK ............................................................................................................................ 10 POLICTICAL CONDITIONS ................................................................................................................... 10 ECONOMIC FACTORS ......................................................................................................................... 11 UK economic review of exports and imports .......................................................................................... 11 UK economic growth predictions ....................................................................................................... 11 UK economic review: strengths and weaknesses.................................................................................... 12 SOCIAL CONDITIONS .............................................................................................................................. 12 TECHNOLOGICAL FACTORS .................................................................................................................... 12 SURGICAL MARKET OF UK ...................................................................................................................... 13 ENTRY MODE SELECTED FOR SURGICAL INSTRUMENT ........................................................................... 13

Surgical Industry of Pakistan

Surgical instrument manufacturing industry originated in the early 1940s in and around the city of Sialkot. The sector manufactures a wide range of medical, surgical and veterinary instruments exporting 80-90 % of its production. Pakistan has a history spanning over a century of skilled craftsmanship in manufacturing surgical instruments. This has over the last few decades combined with modern equipment and manufacturing technology to produce surgical instruments of the highest quality which are exported to many countries around the world. The industry presently consists of about 400 small and medium labor intensive production units, providing jobs to over 40,000 workers. Joint-venturing and subcontracting with small skilled workers or makers is quite common. The number of registered exporters and manufacturerscum-exporters has reached the figure of 2000, though the major international suppliers are about two dozens.

Elmed Surgical Instruments

ELMED INSTRUMENTS is a relative new company in the surgical industry but with a very long history and experience behind it in manufacturing of surgical instruments. It dates back to the year 1908 when the grandfather of the ELMED team, MR. MOHAMMAD FAZAL ELAHI started the manufacturing of these products at a limited scale. ELMED INSTRUMENTS itself was established in 1994 and is an off shoot of M.F.ELAHI & CO. (E.P.) PVT. LTD. A dedicated and determined group of six cousins who have been working at ELAHI with personal experience ranging between 13-25 years joined hands together to form the company. The spirit and motive behind the establishment of ELMED was to achieve certain targets and this was only possible by having a like-minded team. Today after a period of eight years the name ELMED stands for QUALITY-RELIABILITY-SERVICE in the surgical world. We can say that we have been quite successful in achieving the fixed targets and it has been possible with the help of our skilled workers as well as feed back from our worthy CLIENTS. ELMED started its operations in the year 1994 in a newly build premises with a covered area of 25000sq ft about 5km on the outskirts of Sialkot city. With the passage of time and growing needs we have added another three manufacturing facilities and today the total covered area is more than 100000sqft.with a skilled work force of 550 and updated machinery we are capable of manufacturing the most sophisticated instruments and have been successful in catering the needs of its valued clients all over the world.
A broad range of surgical instruments being manufactured by ELMED are: y y y Diagnostic instruments Anesthesia instruments Puncture instruments

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General instruments Suture instruments Plaster instruments Bone instruments Tracheotomy instruments Dermatology instruments Goiter instruments Cardiovascular instruments Stomach, Intestine and Rectum Instruments Kidney, Liver and Gall Stone Instruments Bladder And Urology Instruments Gynecology Instruments Obstetrics Instruments Ophthalmology Instruments Neuro and Leminectomy Instruments Pituitary Instruments Micro Instruments Rhoton Micro surgical Instruments Jannetta microsurgical Instruments Otology Instruments Rhinology Instruments Oral Instruments Tonsil Instruments Laryngo Broncho Esophagoscopy Instruments Broncho Esophagoscopy Instruments Sterilizing Instruments Asepsis

COUNTRIES ANALYSIS SELECTED FOR ELMED INSTRUMENTS y BRAZIL y UK

BRAZIL
Brazil officially the Federative Republic of Brazil is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population. It is the only Portuguese-speaking country in the Americas and the largest lusophone country in the world. Some facts about Brazil are: Capital: Brasilia Area: 8,511,965sqkm/3,285,618sqml Language: Portuguese Currency: Real Population: 182,032,604 Life expectancy: 64(men),69(women) Literacy rate: 83% Religions: 89%RomanCatholic,Indianfaiths Physical features: Amazon basin covers the northern half of the country with a network of rivers, fertile in the south, mainly tropical climate Imports: Mineral fuels, machinery, chemicals, wheat, foodstuffs, fertilizers, cast iron, coal Exports: Steel products, transport equipment, coffee, iron ore, aluminum, iron, tin, sugar, beef, textiles

PEST ANALYSIS OF BRAZIL: POLITICAL FACTORS:

Brazil is currently a country with a stable, proactive government and there is virtually no political instability at the moment.

ECONOMIC FACTORS:
Brazil's economy did not escape the crisis unscathed. After posting growth rates of 5.7% in 2007 and 5.1% in 2008, Brazils GDP dropped 0.2% in 2009. Several steps were taken by the government to minimize the impact of the crisis, including injecting more than U.S. $100 billion of additional liquidity into the economy, providing tax cuts to manufacturers and consumers, and reducing Central Bank interest rates. Brazil emerged from the global financial crisis in 2009 and economic growth is estimated to reach 7.1% in 2010. A more sustainable growth level, in the range of 4.5%, is predicted for 2011. y y y y y INTEREST RATE 10.75 GROWTH RATE 7.1 INFLATION RATE 5.63 GDP PER CAPITA(PPP) $10,100 GDP - composition by sector: agriculture: 6.1% industry: 25.4% services: 68.5%

SOCIAL FACTORS
y y Population: 201,103,330 Age structure: o 0-14 years: 26.7% o 15-64 years: 66.8% o 65 years and over: 6.4% Population growth rate: 1.166%

TECHNOLOGICAL FACTORS:
Brazil is a leader in science and technology in South America and a global leader in some fields, such as biofuels, agricultural research, deep-sea oil production, and remote sensing. The Brazilian Government seeks to develop an environment that is more supportive of innovation,

taking scientific advances from the laboratory to the marketplace in order to promote economic growth. The government has put into place many laws that are meant to help technological innovation inside of the country. An example of this is the (Programs for Industrial and Technological Development) PDTI.

BRAZIL SURGICAL MARKET REVIEW:

The Brazilian market of medical equipment continues to grow despite numerous economic and exchange crises. . In 2009, the medical products market is expected to grow at an average rate of around 10% annually, according to market specialists. Medical equipment is a very broad market segment, and includes everything from disposable syringes to sophisticated image diagnostic equipment. Brazilian statistics lump together medical, dental and clinical laboratory equipment. The Brazilian market is supplied by imports and by domestic and multinational players with a local manufacturing base. Some 60% of purchases are made by the Government and the remaining 40% by the private sector. Main buyers of medical equipment are Government, nonprofit and private hospitals, clinics and diagnostic centers. Government purchases are almost always done by public bid and are restricted to companies that have a local presence. Major equipment, such as diagnostic equipment, is generally purchased directly from the manufacturer or its representative. Most often the local representative facilitates the importation process, but the actual transaction occurs directly between the buyer and the company outside of Brazil. There are thousands of medical equipment distributors throughout Brazil, mostly concentrated in the Southeast. Many distributors import, package and re-label in Brazil. There are numerous Brazilian manufacturers of medical equipment. Many are small to mid-sized companies manufacturing low cost products for the local market. Others are major multinationals that serve Brazil as well as export.

IMPORTS OF MEDICAL EQUIPMENT

About half (in value) of all medical equipment is still imported in Brazil. This includes high unit value products such as imaging systems, as well as catheters, pacemakers, diagnostic reagents, and other high volume, lower priced items. The Brazilian market is supplied by imports and by domestic and multinational players with a local manufacturing base. Some 60% of purchases are made by the Government and the remaining 40% by the private sector. The main importers of medical equipment are large non-profit hospitals, government hospitals and companies importing equipment for re-sale.

HEALTH SERVICES IN BRAZIL

The Brazilian market for health services accounts for some US$ 40 billion per year, equivalent to 10% of the GDP. The Minister of Health invested US$11.4 billion in health care programs during in the past few years.. Most Brazilians (74%), are served by the public health system Sistema nico de Sade (SUS). Health services in Brazil are provided by a mix of public and private facilities consisting of an estimated 7,000 hospitals, more than 12,000 diagnostic clinics, and about 250,000 doctors. The SUS hospital infrastructure and physical and economical resources are sufficient to meet the needs of the entire Brazilian population. . However, the system is somewhat deteriorated, which forces patients to wait in long lines for surgery, laboratory tests and treatment. The Government is making impressive efforts to recover health services, as evidenced by the numerous campaigns. Just as an example, Brazil conducts periodic vaccination campaigns generally on a Saturday, these are heavily advertised and vaccinations are free for children, woman and elders in the prescribed age range. Quality of health care varies enormously. The better academic hospitals (which typically serve the very poor) such as Hospital das Clnicas in So Paulo, and top line private hospitals are probably equivalent to the best health care available in the world. They are well equipped, typically with state of the art equipment. The vast majority of health services fall somewhere in between, but by and large in major urban cities of Brazil the population has access to most modern diagnostic and treatment equipment and tools.

REQUIREMENTS TO ENTRY BRAZILIAN MARKET:

Regulatory and approval processes to enter the Brazilian Market Imported products controlled by the Ministry of Health, including pharmaceuticals, vitamins, cosmetics and medical products, can only be sold if: A) The foreign company establishes a local Brazilian manufacturing unit or local office, fully responsible for its products; or B) The foreign company appoints a Brazilian distributor, who has the registration with the SVS as an importer and distributor of the types of products being offered. Usually, the importer/distributor that registered the medical product is the only company authorized to commercialize the goods. This agreement lasts five years and the process to cancel or replace this partnership is slow and expensive.

Documents Required for Product Registration, Importation and Sales in Brazil

"Alvar de Funcionamento" - A trading permit granted by the state sanitary authorities. This allows the company to import, distribute, store and sell the product registered with the SVS. b) "Autorizao de Funcionamento" - A permit like the "Alvar de Funcionamento", but granted by the Federal Government.

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c) Contract with a qualified technician (such as a chemist, pharmacist, engineer, etc, according to different types of industry). This is called "Terms of Technical Responsibility", signed by the professional. This document can be obtained from the Regional Pharmaceutical Council. d) Contract with a local Brazilian laboratory to do the quality control certificate for each one of the products to be registered. This laboratory must be an "OCC-Organismo de Controle e Certificao", (Control and Certification Laboratory) an official registered certification organization, registered with the Brazilian Ministry of Health. The company has 12 months to provide this information. The company can use any laboratory authorized by the Ministry of Health.

ENTRY MODE SELECTED :

The three most common ways of entering the Brazilian market are: 1) hire an agent, 2) hire a distributor, and 3) form a Brazilian company to import your equipment. To hire a distributor or agent, it is important to find a company that knows the medical device market and has good contacts. It is also important to identify a distributor familiar with Brazils regulatory system and has good relations with Brazilian regulatory authorities.You also need to make sure that the firm you hire has the capacity including staff, time and resources - to adequately represent your product. A good approach is to look for executives who have recently retired from medical device companies in Brazil. Often these people will be willing to represent one or more medical device importers, and have the contacts to do so effectively. After in depth analysis of the market situation and going through the legal requirements of the health ministry we have selected to open up sales office (subsidiary) for ELMED INSTRUMENTS and export directly.

UNITED KINGDOM
The United Kingdom of Great Britain and Northern Ireland (commonly known as the United Kingdom, the UK, or Britain) is a sovereign state located off the northwestern coast of continental Europe. The United Kingdom is a constitutional monarchy and unitary state. It is a country consisting of four countries: England, Northern Ireland, Scotland, and Wales. It is governed by a parliamentary system with its seat of government in the capital city of London. There are three devolved national administrations of

varying powers in Belfast, Cardiff and Edinburgh, the capitals of Northern Ireland, Wales and Scotland respectively. The UK has three Crown Dependencies and fourteen overseas territories that are not constitutionally part of the UK. The UK is a developed country, with the world's sixth largest economy by nominal GDP and the sixth largest by purchasing power parity. It was the world's first industrialized country and the world's foremost power during the 19th and early 20th centuries, but the economic and social cost of two world wars and the decline of its empire in the latter half of the 20th century diminished its leading role in global affairs. The UK nevertheless remains a great power with leading economic, cultural, military, scientific and political influence. It is a recognized nuclear weapons state while its military expenditure ranks third or fourth in the world. It is a Member State of the European Union, a permanent member of the United Nations Security Council, and a member of the Common wealth of Nations, G8, G20, NATO, OECD, the Council of EuropeandtheWorldTradeOrganization.

UK MARKET OVERVIEW
y The United Kingdom (estimated 2009 GDP of $2.2 trillion) has the sixth-largest economy in the world, the third-largest economy in the European Union, and is a Major international trading power. Highly developed, sophisticated, and diversified, the UK market is the largest in Europe and the fifth largest in the world for U.S. goods exports. With few barriers, the UK is the entry market into the EU for more than 40,000 U.S. Exporters. The UK medical equipment market is the worlds sixth largest and Europes fourth largest. Valued at $6.6 billion in 2009, the market is expected to grow by around 3.3% in 2010. poultry and fish. Important industries in the country are engineering, chemicals, electronics, motor vehicles, aircrafts, textiles, cloth and banking. The economy of the country largely benefited from the exports of metals.

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y Major agricultural products in the country are cereals, oilseed, fruits, vegetables, cattle,
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PEST ANALYSIS OF UK:

POLICTICAL CONDITIONS:
The United Kingdom does not have a written constitution. The equivalent body of law is based on statute, common law, and "traditional rights." Changes may come about formally through new acts of Parliament, informally through the acceptance of new practices and usage, or by judicial precedents. Although Parliament has the theoretical power to make or repeal any law, in actual

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practice the weight of 700 years of tradition restrains arbitrary actions. Executive power rests nominally with the monarch but actually is exercised by a committee of ministers (cabinet) traditionally selected from among the members of the House of Commons and, to a lesser extent, the House of Lords. The prime minister is normally the leader of the largest party in the Commons, and the government is dependent on its support. On May 11, when it became clear that Labour would be unable to form a government, Prime Minister Gordon Brown resigned, and David Cameron became the new Prime Minister. The United Kingdoms economy was hit by turmoil in the financial markets. It entered a recession in the third quarter of 2008. In response to the financial crisis, the British Government implemented a wide-ranging stability and recovery plan that included a fiscal stimulus package, bank recapitalization, and credit stimulus schemes.

ECONOMIC FACTORS:
The United Kingdom has the sixth-largest economy in the world, is the second-largest economy in the European Union, and is a major international trading power. A highly developed, diversified, market-based economy with extensive social welfare services provides most residents with a high standard of living.The United Kingdoms economy was hit by turmoil in the financial markets. It entered a recession in the third quarter of 2008 and began to recover with two quarters of slightly positive GDP growth in the fourth quarter of 2009 and the first quarter of 2010. Unemployment has yet to return to pre-recession levels, standing at 7.7% in September 2010. In response to the financial crisis, the British Government implemented a wideranging stability and recovery plan that included a fiscal stimulus package, bank recapitalization, and credit stimulus schemes.London remains a leading international financial center, but was affected by recent financial market turbulence. London banks laid off thousands of workers in 2008 and are beginning to rehire; many scaled back their international operations during the crisis. Two U.K. banks, Northern Rock and Bradford & Bingley, were nationalized, while the British Government has taken a significant share in two others. In spite of the damage caused by the financial crisis, Londons financial exports contribute greatly to the United Kingdoms gross domestic product and will continue to do so. London is a global leader in emissions trading, a center for Islamic banking, and home to the Alternative Investment Market (AIM).

UK economic review of exports and imports

A quick review of total exports and imports of UK indicate that exports have been significantly affected due to global economic crisis. Total UK exports in 2007 were around $320 billion, which was nearly 10 percent less that previous year export figure. However, UK imports registered a growth of about 2 percent in 2007. Total UK imports amounted to around $451 billion in 2007.

UK economic growth predictions

International Monetary Fund predicted that UK economy is likely to grow by about 1.4 percent

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in 2008. They also predicted that economic growth of United Kingdom would be around 1.1 percent in 2009. Both these predictions are indicative of a bleak economic scenario for UK in near future.

UK economic review: strengths and weaknesses

UK economy's areas of economic strength include low corporation taxes, rising public sector opportunities, and favorable conditions for businesses to generate funds. Weak areas for UK economy include high rate of inflation, and bad debts for UK banks. For United Kingdom to maintain a positive growth rate, it has to counter both these problems.

SOCIAL CONDITIONS: Social factors include the demographic and cultural aspects of the
external macro environment. Nationality: British. Population (2010 est.): 62.2 million. Annual population growth rate (2010 est.): 0.56%. Major ethnic groups: British, Irish, West Indian, South Asian. Major languages: English, Welsh, Irish Gaelic, Scottish Gaelic. Education: Years compulsory12. Literacy99%. Health: Infant mortality rate (2009 est.)4.69/1,000. Life expectancy (2009 est.)males 77.8 yrs.; females 82.1 yrs:total 79.9 years. Work force (2009, 31.25 million): Services--80.4%; industry--18.2%; agriculture--1.4%.

TECHNOLOGICAL FACTORS:
UK is one of the worlds advanced countries that have great technology. UK has a well developed technology sector. The government will also spend more than 200 million on launching Technology and Innovation Centres (TICs) over the next four years. Another boost to the UK technology sector is news that the Silicon Valley Bank will open a bank in the UK to assist technology companies with financing.UK technology sector is boosted by government plans like it will be investing in launching Technology and Innovation Centres (TICs) over the next four years. David Cameron is tipped to announce plans that will see east London become a technology hub to rival Silicon Valley a real boom for the UK's tech sector. The Olympic Park will become a 'centre of technological innovation', following the 2012 Games, with internet giants including Google and Face book eager to send their greenbacks east London's way. Google will be launching an 'innovation hub' at the park, which will promote development and training for technology start-up firms in London. The centre will be the first of its kind in Europe.

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SURGICAL MARKET OF UK
OVERVIEW
($ million) T. Market Size T.Local Production Total Exports Total Imports Imports from U.S.

2008 6300 5100 2100 3300 1380

2009 6620 5420 2350 3550 1450

2010(ESTD) 6840 5640 2500 3700 1500

The UK medical equipment market is the worlds sixth largest and Europes fourth largest. Valued at $6.6 billion in 2009, the market is expected to grow by around 3.3% in2010. The U.S. is the most important overseas source of medical devices. Imports from the U.S. account for around 22% of the market. The principal purchaser of medical equipment in the UK is the National Health Service (NHS), the UKs public sector healthcare system, which accounts for about 81% of Britains health care provision. The NHS in England is comprised of 152 primary care trusts (PCT), which provide general practitioner services; 169 acute trusts, which provide hospital services; 11ambulance trusts; and 58 mental health trusts. There are smaller numbers of trusts in Northern Ireland, Scotland and Wales. Most medical device procurement is done by acute trusts. There are two main centralized procurement agencies, NHS Supply Chain and Buying Solutions Health. NHS Supply Chain manages the procurement and delivery of 620,000products, including capital equipment, medical devices, orthopedic devices, theater equipment, dental products, audiology products and catering supplies. Buying Solutions Health procures non-clinical goods and services, including permanent and temporary staff; consultancy services; energy and water; and IT, telecoms and transport services. While the private sector accounts for less than one-fifth of the UK health care market, Significant opportunities still exist for medical device companies to supply private hospital, residential, and nursing facilities, as well as home care service providers with equipment. The UK Department of Health (DOH) plans to build at least new five hospitals over the next two years, although most of the new hospital construction program is now complete.

ENTRY MODE SELECTED FOR SURGICAL INSTRUMENT:

As UK has not totally recovered from the financial crises but its on the way of growth so initially we have decided to indirectly export ELMED SURGICAL products). As the demand is growing at rate 3.3 percent annually an according to SURGICAL ASSOCIATION OF

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SIALKOT (SAS), UK is the third highest importer of Sialkots manufactured surgical goods among several countries.

REPORTS RESOURCES

Special thanks to:

MR.IMRAN CHUGHTAI Supervisor of forging unit, ELMED INSTRUMENTS SIALKOT.

www.elmedinst.com www.economywatch.com www.ciafactbook.com www.google.com www.tradingeconomics.com www.asiantradehub.com www.usbuyinfo.net

www.tdap.gov.pk

www.simap.org.pk

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