August 2014

Cardiac Pacemaker Market – India
2 CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
Executive Summary
Market
Drivers &
Challenges
Competitive
Landscape
Cardiac pacemaker market in India is exhibiting a volume-wise CAGR of x1% over 2012-18e and
value-wise CAGR of x2% over the same period
The industry is dominated by foreign companies
Hospitals sell pacemakers as well as offer complete packages to patients
Drivers:
 Changing demographics
 High rate of cardiovascular diseases
 Low market penetration
 Growing awareness
 Changing Insurance coverage structure
and business model
Challenges:
 Lack of standard regulatory
structure and government
initiatives
 Unwillingness to spend on
medical devices
 Weak manufacturing base
Trends
Product innovation
Focus on low cost goods
Significant presence of MNCs
Major Players
Company 1 Company 2 Company 3
Company 4 Company 5 Company 6
3
•Macroeconomic Indicators
•Introduction
•Market Overview
•EXIM
•Drivers & Challenges
•Trends
•Competitive Landscape
•Strategic Recommendations
•Appendix
CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
4
Economic Indicators (1/3)
11
12
13
14
15
INR tn
Q4
c4
b4
a4
Q3
c3
b3
a3
Q2
d2
c2
b2
a2
Q1
d1
c1
b1
a1
2013-14 2012-13 2011-12 2010-11
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
-2
-1
0
1
2
q
Aug 2013 - Sep 2013
r
Sep 2013 - Oct 2013 Jul 2013 - Aug 2013
p
Nov 2013 - Dec 2013
t
Oct 2013 - Nov 2013
%
s
CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
5
Cardiac pacemaker market is poised to grow at a steady rate
in the future
• Cardiac pacemaker market in India offers strong
potential for both existing and new players
• India along with Country A are the growing markets
for cardiac rhythm management products of 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
foothold in the market due to their brand recognition,
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 a
global presence
 Smaller players utilize product differentiation strategies
rather than reduced pricing methods to maintain their
foothold in the market
• Improvements in technology such as the invention of
leadless pacemakers will further aid growth in the
market
Market Overview (1/3) Market Size & Growth (Volume-Wise)
0
50
30
40
20
10
2013
c1
d1
f1
‘000
a1
2016e
+x1%
2012
g1
b1
2017e 2015e 2018 2014e
h1
Healthy growth rates provide an impetus to existing
and potential players to invest in the market
Market Size & Growth (Value-Wise)
0
2
4
6
2016e
f2
INR bn
2018
c2
2017e 2014e
g2
+x2%
a2
b2
2015e 2013
h2
2012
d2
CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
6
Although low cost products are exported to other
countries…
• Export of pacemakers from India has been increasing
over the past few years
• Number of countries to which pacemakers were
exported has also decreased over the years
• Products are mostly exported to the countries in
Region A
• Strong domestic market and weak manufacturing
base is responsible for fluctuating exports
Exports – Overview Export of Cardiac Pacemakers
Export (Region-Wise: 2013-14; Apr - Dec)
0
50
100
0
1
2
3
f1
b1
‘000 units
2013-14
(Apr - Dec)
c2
2011-12
INR mn
d1
2010-11
f2
c1
d2
2012-13 2009-10
a1
a2
b2
Value Volume
s1%
p1%
r1%
q1%
t1%
u1%
Export (Region-Wise: 2012-13)
Country 5
Country 2
Others
Country 1
Country 4
Country 3
Note: Figures are for respective financial years
s2%
r2%
t2%
q2%
p2%
u2%
Country 2
Country 1
Others
Country 5
Country 7
Country 4
CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
7
Drivers & Challenges – Summary
Drivers
Changing demographics
High rate of cardiovascular diseases
Low market penetration
Growing awareness
Changing Insurance coverage structure
and business model
Challenges
Unwillingness to spend on medical
devices
Weak manufacturing base
CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
8
Trends – Summary
Trends
Improvements in
Technology
Monitoring via Internet Reuse
CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
9
Porter’s Five Forces Analysis
Competitive Rivalry


Bargaining Power of Suppliers


Bargaining Power of Buyers


Threat of Substitutes


Threat of New Entrants


Impact

Impact

Impact

Impact

CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
Impact

10
Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3)
Competitive Benchmarking (1/3)
0
2
4
6
8
Company 1
a1
b1
a2
%
Company 3
b2
Company 2
c1
c2
Net Margin Operating Margin
• Company 3 recorded operating margin of c1%, lower than that of Company 1 which recorded operating margin of a1%
but higher than Company 2 which recorded operating margin of b1%
• Company 1 recorded the highest net margin of a2%, higher than Company 3 which recorded a net margin of c2% and
Company 2 which recorded a net margin of b2%
CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
11
Public: Domestic Company – Company 1
(1/4)
Key People
Products and Services
Company Information Offices and Centres – India
Category Products/Services
Name Designation
Person 1 Chairman and MD
Person 2 Whole Time Director
Person 3 Whole Time Director
Pithampur
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
Head Office
12
Financial Snapshot Key Ratios
Financial Summary
• Company earned a net profit of INR XX mn in FY 2013, as compared to net
profit of INR Y mn in FY 2012
• It reported total Income of INR XX mn in FY 2013, registering an increase of
X per cent over FY 2012
• It earned an operating margin of X.X per cent in FY 2013 an increase of X.X
percentage points over FY 2012
• The company reported debt to equity ratio of X.XX in FY 2013, an increase
of X.X per cent over FY 2012
Key Financial Performance Indicators
Indicators Value (dd/mm/yyyy)
Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)
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 Decline
Net Profit/Loss Total Income
0
20
40
60
80
-4
-2
0
2
2011
-b2
b1
2010
a2
a1
INR mn INR mn
2013
d2
d1
2012
c2
c1
CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
Public: Domestic Company – Company 1
(2/4)
13
Key Business Segments Key Geographic Segments
Business Highlights
50%
0%
100%
2013
Category 1
0%
50%
100%
p2%
r2%
2008
q1%
2010
s2%
p1%
q2%
2009
r1%
s1%
2011
Description News
Overview • Operates with its subsidiary, Company A
Business
• It has its plant located at City 1
• Has a licensed and installed capacity of producing ‘y’ number of pacemakers annually
• The company is also into the business of contract manufacturing
Pacemakers
• They make both internal as well as external pacemaker
• The permanent pacemakers are available in various modes such as : Model 1, Model 2, Model 3 and
Model 4
Shareholders • Promoters occupy ‘a’% of the shares whereas general public hold ‘b’% of the shares
Awards and Recognitions • Received ISO 9001:2000 certification in 2007
Total revenue for the
company has been
coming from only this
segment for last 5 years
Region 1 Region 2
CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
Public: Domestic Company – Company 1
(3/4)
14
T
O
W
S
Public: Domestic Company – Company 1 – SWOT Analysis
(1/4)
CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
15
Key People
Products and Services
Company Information Offices and Centres – India
Category Products/Services
Name Designation
Person 1 Director
Person 2 Director
Person 3 Director
Bangalore
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
Private: Domestic Company – Company 2
(1/5)
Head Office
16
Shareholders of the Company as on 30.09.2013 Ownership Structure
Name No. of Shares held
Entity 1
Entity 2
Entity 3
Total
c%
b%
a%
Category 3
Category 1
Category 2
CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
Private: Domestic Company – Company 2
(2/5)
17
Financial Snapshot Key Ratios
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 Decline
Financial Summary
• Company earned a net profit of INR XX mn in FY 2013, as
compared to net profit of INR Y mn in FY 2012
• It reported total Income of INR XX mn in FY 2013, registering
an increase of X per cent over FY 2012
• It earned an operating margin of X.X per cent in FY 2013 an
increase of X.X percentage points over FY 2012
• The company reported debt to equity ratio of X.XX in FY 2013,
an increase of X.X per cent over FY 2012
Net Profit/Loss Total Income
0
0
-20
-10
-30
4
2
6
2013 2012
INR mn INR mn
b1
a1
d1
-c2
-b2
-d2
-a2
c1%
2011 2010
CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
Private: Domestic Company – Company 2
(3/5)
18
Business Highlights
Description News
Overview
• The company’s manufacturing facility in City 1 is equipped with the latest tools and
equipments
Expansion Plans • They are also into contract manufacturing-for various pacemakers for OEMs
Investors • Company B is a strategic investor in the company
Pacemaker
• Entered into an exclusive technology transfer agreement with Company C in 2009
• Partnered with Company D for pacemaker leads in 2009
Awards and Recognitions • An ISO 9001-2008 and ISO 13485-2003 certified advance medical device company
CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
Private: Domestic Company – Company 2
(4/5)
19
T
O
W
S
Private: Domestic Company – Company 2 – SWOT Analysis
(5/5)
CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT
20
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Cardiac Pacemaker Market – India report is part of Netscribes’ Healthcare Series.
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