A REPORT

ON

INDUSTRIAL ANALYSIS OF HEALTHCARE &

MEDICAL EQUIPMEMT INDUSTRY

BY
BHAVIKA SAIN
A1810417048
INTRODUCTION

The design of the research serves as a bridge between what is established (research
objectives) & what to do while conducting the study to fulfill the goals. It expects
what a company wants in terms of results & analytical work on gathered data that will
convert useful findings.

This research is a descriptive research and, by & large, a field research & desk with
the following methods:

 Scanning through standard financing textbooks to understand the theoretical

background for this research.
 Collection of explicit organization writing & fundamental research dependent
on the web.
 Examination of the information gathered & depicts it through the diagrams &
subsequently, the outcomes are translated.
 Finally, a few suggestions & ends are sent to the organization.

MOTIVATION BEHIND THE STUDY

i) The purpose of the project is to study the Healthcare sector in India

ii) To analyze the financing options for Medical Technology & devices.
iii) To underststand the government policies framed for Healthcare sector &
their impact on SMEs.
iv) Lastly, to provide meaningful value addition to the organization.

UNDERSTUDY SCOPE

The investigation was completed for a time of 12 weeks. Fundamental motivation

behind doing this undertaking is to think about The Healthcare part in India. It can
discover insights regarding the restorative gadgets industry directly from its
advancement stage, development & future prospects. It additionally helps in
understanding the distinctive financing plans of therapeutic gadgets. This examination
is huge in the business since it sees minute subtleties that separate the exhibitions of
different organizations for a similar area & completion the venture. It is an
examination for us just as it can support the association & gives an extra esteem.
COLLECTION METHODS

Optional information is gathered through reports, magazines, explicit organization

writing & web based research, & so forth.

SOURCES SOLUTION

The information gathered for this examination has given the base to its appraisal &
elucidation. The information gathered is utilized to draft outlines, delineate by
diagrams & subsequently gives adequate understanding. In this exploration, the
second information is utilized.

PROFILE OF COMPANY

WASME be set up in New Delhi, India in 1980 because of the proposal of the
principal World Conference of Small & Medium Enterprises in New Delhi in Nov’80
which witnessed participation of about 600 representatives of the world SME
community. As the name “World Assembly of Small & Medium Enterprises” was not
reflecting the character & composition of the members of the society, the Governing
Body of WASME had decided to change the name to “World Association for Small &
Medium Enterprises” with the same acronym “WASME”. Consequently, the society
in the name “World Assembly of Small & Medium Enterprises” got amalgamated
into “World Association for Small & Medium Enterprises”.

WASME can legitimately take pride in ringing about this transformation & for
helping in introducing far reaching changes in policy initiatives & program support &
in facilitation of a conducive environment for development of SMEs through
advocacy at all relevant scenario.

ORGANIZATIONAL OBJECTIVES

 Making SME's worries & interests in various UN & worldwide circumstances.

 Building the connection between SMEs in created & creating nations by
urging venture to-big business coordinated effort.
  Networking with related/comparative associations.
 Expanding participation with UN offices & universal associations.
 Develop limit of SMEs through administration & improvement programs.
 Providing data on & about global advancement in the SME division.
 Bringing examination & investigation to current issues confronting SMEs.

MISSION & VISION

• Develop an agreeable network of miniaturized scale, little, & medium undertakings,

make fundamental activity to fortify them, & decidedly influence the by & large
worldwide economy.
• Promote itself as the main worldwide association that bolsters smaller scale, little &
medium ventures (MSMEs) before all national & global bodies with compelling
media use & most recent innovation.
• Promote national & universal associations with MSMEs, Governments, & money
related establishments through satisfactory data spread & development.
• Set up as a vital asset community for MSMEs & accordingly encourage their
entrance to the best business rehearses & budgetary help through online/disconnected
preparing, innovation exchange, & counsel business.
• Make instruments to evaluate & encourage global systems administration &
exchange for MSMEs.
• Become an impetus for structure a synergistic system for MSMEs to wind up
progressively focused, benevolent condition, meeting society, socially & morally
delicate to their business rehearses.

WORLDWIDE RELATIONS

Company is the main worldwide non-legislative association of SMEs, getting a

charge out of the status of the Consultative or Observer at:

 UN Economic & Social Council (ECOSOC)

 Conclusions of the United Nations on Trade & Development (UNCTAD)
 UN Industrial Development Organization (UNIDO)
 World Intellectual Property Organization (WIPO)
  World Customs Organization (WCO)
 United Nations Development Program (UNDP)
 UN Commission on International Labor Code (UNCITRAL)
 The United Nations Commission on Economy & Social Affairs for Asia &
Pacific (UNESCAP)

TRIUMPHS

WASME is exceptionally effective in advancing SMEs worries in provincial &

worldwide circumstances. A portion of the key accomplishments are:
 It shows up as a solid universal NGO with delegates (Senior Advisors, Permanent
Representatives, External Consultations & Bureau Officers) in various pieces of
the world.
 Enjoys the guide/spectator status in practically all concerned offices in the UN
framework.
 Completed 17 universal gatherings with SMEs today, notwithstanding provincial
meetings on rustic industrialization & related points to achieve SMEs concerns.
 Integration together with particular establishments, preparing programs equipped
towards meeting the prerequisites of SMEs & SME special associations as a
component of human asset improvement programs.
 Mobilizing innovation exchange, building up joint endeavors & promoting
associations with ventures of industrialized, creating & less created nations in the
market economy.
 Faclitating individuals & accomplices to take an interest in an assortment of
worldwide & provincial occasions that specifically intrigue them.
 Established a successful system around the globe.
 Bring a universal dimension of thorough Bi-month to month Newsletter, 'World
SME News' & following two weeks of e-mailer 'SME e-Bulletin'.
 Carrying different productions on various subjects important to SMEs, for
example, imaginative financing, innovation, business the board, advancement of
fare & showcasing, industrialization of the non-ranch part & ladies in
advancement..
INDUSTRY ANALYSIS OF HEALTHCARE & MEDICAL
INDUSTRY
Review
Social insurance related objectives make up a vast piece of the
Millennium Goals for which India is a proprietor. Therapeutic innovation
has an imperative job in conveying wellbeing administrations to India.
Medicinal experts depend on restorative innovation for precise finding &
compelling treatment. The cutting edge therapeutic innovation of the
twentieth century is basically driven by the US with a solid biological
community that underpins change. The change demonstrate is the
principle part of the restorative gadget & the innovation business. Being
remarkable & profitable, the effect of arrangement, guideline,
government & installment center is imperative for this industry. As an
ongoing activity, an advancement scorecard for nine nations, the United
States, the UK, Germany, France, Japan, Israel, India, China & Brazil has
been created, to all the more likely educate partners of the development
models that are attempting & basic variables for the economy. The
therapeutic innovation advancement scorecard shows that the focal point
of the development focal point of the biological system is changing the
creating economies by & large & in India & China specifically. Rising
economies will likewise have more help from network speculation
through funding, private value, & so forth. The Indian restorative
innovation industry is required to develop from US $ 2.85 billion out of
2009 to US $ 15 billion by 2020. While solid drivers for this development
exist in India, there is additionally a requirement for restorative change
innovation in the market given reality of the land. Numerous Indian &
abroad restorative innovation organizations are propelling inventive items
for the Indian market.
The accomplishment of current innovation depends on five columns:

• Excellent money related motivating forces

• Creating aptitudes for quality research
• Supported administrative framework
• Dem& & supply of wellbeing administrations
• Supported venture network
The Indian Healthcare part presently speaks to a USD 45 Billion industry.
A separation of the part starting at 2015 is given in fig 1:

FIG 1

Healthcare industry Break-up

15%
Insurance and medical
Equipment

10% Diagnostics

50%
Pharma

Hospital
25%

Source: FICCI Annual Report, 2014

GROWTH IN HEALTHCARE SECTOR & DRIVERS OF GROWTH
Stated earlier, the Indian Healthcare Industry is currently estimated at US$ 50
Billion. The industry is expected to grow to USD 80 Billion by 2013 & USD 290
Billion by 2021. The average CA GR for the next 11 years, consequently, has been
APPROX. at 22 %.
Drivers of expansion in Healthcare trade:
A mixture of demographic & financial factor is expected to bring about increased
healthcare coverage in India which is expected to drive the expansion of the part
ORDER OF MEDICAL DEVICES

Medications. The innovation division in India was worth US $ 2.75 billion of every
2008 (NIPER Ahmedabad) & is required to contact US $ 14 billion by 2020 at a
higher yearly development rate of roughly 15% (Industry Analysis, PwC gauges) are
extensively fragmented as pursues:
 Medical gadgets
 Medical inserts
 Medical gear & machines
 The restorative hardware portion involves the biggest offer of the therapeutic
innovation division with over 55% of the absolute market estimate. This
fragment incorporates the accompanying:
 Imaging gear, for example, SPECT, MRI, CT
 In-vitro analytic hardware
 Equipments utilized for treatment, for example, direct quickening agents,
gamma blades, cath labs & so on.
 The restorative inserts fragment establishes the following biggest section with
over 25% of the market. This portion incorporates the accompanying:
 Heart embeds, for example, stents, pacemakers, heart valves
 Orthopedic inserts for knee, hip, spine
 Eye embeds, for example, intra-optic focal points
 Ear Implants, for example, inserts of the physiology
 Dental inserts
 Restorative hardware & apparatuses make up around 20% of the market &
comprise of things as pursues:
 Medical Disposables such
 Catheters
 IV cannula, set mixture
 Medical window hangings
 Skin covers
 Sutures
 Syringes & so on
 Medical furniture, for example,
  Patient beds & lounge chair tests
 Patients trolleys
 Operating tables
 Wheelchairs

The area of medical devices includes a vast & diverse range of products. An
effort at categorization of these could arrive at the following:
1. Diagnostic devices
a) Imaging
i) Radiology (X-ray, CT) – ionizing wavelength technologies
ii) MRI & nuclear imaging
iii) Endoscopy equipment
iv) Ultrasonography, foetal d. dopplers, & other non-ionizing wavelength
technologies
b) Laboratory:
i) Basic blood, urine & microscopy tests
ii) Biochemistry
iii) Pathology including hematology
iv) Micro-biology
v) In-vitro diagnostics- rapid diagnostics.
2. Therapeutic:
a) Drug delivery systems: e.g. injection, syringes, Infusion pumps, catheters
b) Medical lasers, Lasik surgical machines
c) Surgical supports: instruments, surgical appliances
d) Monitors: EEG, ECG, oxymeters
e) Medical Textiles: linen, patient mattresses
f) Life support equipment: ventilators, anesthetia equipment, dialysis
equipment
g) Implants: stents, valves, prosthesis, pacemakers.
h) Ancillary equipment- beds, transfer trolleys, I.V. stands, laundry
equipment, lighting equipment, sterilization methods,
Each of the above categories could be made up of a number of similar areas & within
which we have different players & regimes in operation.
 3. IN-VITRO diagnostics
One category in the above which has an over-lap with the earlier section on
pharmaceuticals is with respect to in-vitro diagnostics. This includes tests for
infectious diseases (HIV, hepatitis sub-types, typhoid, STDs, malaria, dengue etc),
diabetes, hormones, cancer biomarkers, pregnancy tests, blood grouping, &
increasingly molecular PCR tests. The IVD market is globally about 40% of the total
medical devices market. India has over 150 firms active in this area of which 50 have
a substantial volume. Many of these are pharmaceutical companies.

4. Biomedical textiles
Biomedical textiles have uses ranging from hygiene (gowns, caps, sheets etc.) to
implantable (vascular grafts, hernia repair mesh) & non-implantable surgicals
(dressings, plasters & other barrier protectives) & extracorporeals like artificial
kidney. With advances in technology, traditional fabrics & yarns have been replaced
by non-woven materials with specific features like antimicrobial properties, extreme
fluid absorbency or repellency, flame retardant properties etc. Estimates of the Indian
market in medical textiles range from
INR 15 - 46 billion to 60 billion by 2016/17. So far, their use has been restricted to
corporate hospital chains. The advantages of non-wovens are obvious but decision
makers- doctors & administrators- baulk at the high costs. The apparent lack of
affordability is exacerbated by lack of domestic manufacturers (only 2 Indian
manufacturers exist, & most of the country’s supply is imported).

FOUR INNOVATION PATHWAYS & DRIVERS OF GROWTH IN

MEDICAL EQUIPMENT INDUSTRY
Four important innovation pathways need to be recognized as having considerable
potential. Firstly, in industry, the major form of innovation may have been the
“jugaad” of the small scale entrepreneurs in Punjab or Tamil Nadu. This has
particularly contributed to instrumentation. Indeed, even little size units get incredible
power from being grouped & casually organized, so they can get past unconscious
learning & unstructured encounters from a shockingly wide territory of catchment.
Furthermore, an ongoing improvement is the appearance of substantial scale
advancement that pushes to tap Indian abilities & gifts in the change of a universal
market, & furthermore exploit enormous & inspiring now the capability of the Indian
market.
Another ongoing improvement, a little beginning of techno-business person
organizations drove, as exemplified by Remidio, Embrace, BigTecXcyton &
ReaMetrix in Bangalore; There are comparative organizations in Mumbai & Delhi
too. They are extremely little, exceptionally creative home-developed organizations in
the demonstrative or gadget zone. They are centered around being creative & bringing
out minimal effort gadgets for the Indian market.
The fourth major development is sort of academic driven, international collaborative
efforts led innovations. The leader in this is the Stanford Bio-Design project. This is
collaboration between IIT Delhi, AIIMS & the Stanford University & has the
patronage & financing of the Department of Biotechnology (DBT).
The basic pattern of how these collaborations work is to have a strong academic
component where a number of students are identified & trained by immersing them in
the process of themselves developing an innovation.
The current Drivers of Innovation include the following:
i. Industries searching for new markets/products - business opportunities. This
includes international companies, which would have substantial markets for
such new products back home- like automated BP apparatus, & easy–to- use
cheap glucometers, non invasive or rapid testing kits.
ii. Academic programs: Institutes of technology that hope to push the frontiers of
technology & that seek to make useful products from new knowledge that has
been generated.
iii. Import substitution- which is both a form of cost reduction & an opportunity
for local industry.
iv. Increasing access to technology for rural & remote use. Paradoxically
whenever this is done, the simpler more robust design makes it an attractive
option even in the urban setting. Reduction of costs as a mechanism of
increasing access outreach. Also reducing the level of skills required to
operate it- by removing for example language barriers.
v. To give new therapies or diagnostic tools more effective, & safer than current
available options. Innovations are often identified with this driver, but in fact
it is really a less important consideration. Part of the problem is in identifying
areas where such needs exist.
vi. To address skill gap in a specific scenario where electro-mechanical
technologies could help address the challenge of fast & consistent capacity
building. Examples of this could be manikin, skill laboratory, surgical skill up
gradation tools such as ophthalmic anesthesia digital training;tele-medicine
especially for continual medical/technical education.

1. Strengths:
i. International Interest in Indian economy: The economic growth of
India is expected to be 7.8% in 2015-16. Hence, there is an increased
international interest in the fast growing market.
ii. Increase access of Technology: Ease in regulation & easily available
technology for medical devices & electronics.
iii. Increase in % of FDI for Healthcare: Government has permissible
10 0% FDI in the medicinal plans sector under mechanical route to
encourage domestic manufacturing.
iv. Increased Emphasis of Budget/Central Government on this sector:
Government has increased emphasis on Medical Devices & healthcare
sector.

2. Weakness:
i. Raised the cost of healthcare: Economic boom in the country has also
resulted in raised cost of healthcare.
ii. Dependence on imports for Medical Devices: Less availability of
recourses & manpower has resulted in imports for medical devices
hence adding to the cost of healthcare in the India
iii. Lower the quality of care

3.Opportunities:
i. Growing domestic demand: The burden of diseases is rising in the
country & also there is an increased awareness & health consciousness
which is resulting in growing demand.
ii. Increasing disposable income: The disposable income of people is
rising hence dem& for better medical facilities is rising
 iii. Easy financing options: Due to better government policies & initiatives
public & private financing options have risen as well.
iv. Booming Economy: The Indian Economy is expected to grow at the
rate of 7.8% in FY 2015-16 which will result in better opportunities for
healthcare sector to grow.
4. Threats:
i. Double Disease Group: Urban India is at the fringe of overall ailment &
is confronting a higher frequency of Life-related sicknesses, for example,
coronary illness, diabetes, malignant growth, COPD & so forth. In the
meantime, Urban Poor & Rural India is battling with Sickly Diseases like
tuberculosis, typhoid, throat, etc. Country India likewise observes higher
occurrence of Non-Life-related sicknesses. It speaks to a genuine test that
should be met by the Indian Healthcare framework. Picture 9 indicates
CAGR of Diseases like this

• Cardiac - 18%
• Oncology - 16%
• Diabetes - 19%

ii. Absence of framework & labor: Access to wellbeing administrations is

incredibly restricted in numerous country regions. Moreover, the current
social insurance framework isn't dismantled & isn't conveyed. Besides,
there is a genuine absence of prepared specialists & medical caretakers
who serve the necessities of the Indian populace.

ACTIVITY GOVT.

HEALTHCARE KEY SECTOR IN 12TH YEAR PLAN

 The Planning Commission gave USD55 billion under the twelfth Five Years
Plan to the Ministry of Health & Family Welfare, which is very nearly
multiple times the genuine use under the eleventh Five-Year Plan
  The offer of human services in all out arrangement distribution is set to
increment to 2.5 percent of GDP in the twelfth Plan from 0.9 percent to the
eleventh Plan
 The twelfth arrangement centers around giving general social insurance,
fortifying wellbeing framework, advancing R & D & reinforcing strong
administrative human services segments.

FDI IN INDIA

Healthcare sector Poised to grow through government policies

CURRENT SCENARIO
FDI up to 1 0 0% under the programmed course is for the assembling of restorative
gadgets. The previously mentioned conditions may not be influenced by greenfield
just as brownfieldprojects: The 'not contend' proviso isn't allowed aside from
extraordinary conditions with the endorsement of theForeign Investment Promotion
Board The planned financial specialist & the prospectiveinvestee are you should give
a testament the FIPB application.

The administration may incorporate critical conditions for FDI in brownfield cases
with endorsements endorsement endorsements.

• The therapeutic gadget implies: Any instrument, apparatus, gadget, embed, material
or other article, regardless of whether it utilized or consolidated, including the
product, proposed by its maker to be utilized explicitly for people or creatures for at
least one explicit reasons for

• determination, aversion, checking, treatment, or expulsion of any disease or ailment;

• testing, observing, treatment, or expulsion of, or help for, any damage or inability;

• examination, substitution or adjustment or backing of life systems or a physiological

procedure;

• supporting or looking after life;

• sanitization of restorative gadgets;

• control of origination;

furthermore, it doesn't accomplish the basic role in or in the human or creature body
in any pharmacological or immunological ormetabolic way, however may aid those
proposed purposes by such methods;

an) an assistant to such instrument, gear, hardware, material or other article;

b) a gadget reagent, reagent item, calibrator, control material, pack, instrument, gear,
hardware or framework whenever utilized alone or in blend thereof proposed to be
utilized for analysis & data arrangement for restorative or demonstrative reason by
breaking down examples got from human body or creature.

The previously mentioned medicinal implications are to be liable to revisions to the

Drug & Cosmetic Laws.

CHALLENGES

• External difficulties: One of the outer variables, expressed, is in spite of the patterns
in human services privatization in major created nations, it is an area that experiences
change & inner financial issues. In numerous nations, the quantity of private players
is constrained in setting up medical clinics in different nations. In this way, potential
quantities of abroad foundations that can put resources into developing markets might
be fairly constrained.

The second factor ordinarily referenced is that the medical clinic business requires
restricted & profound learning of the host nation's market & accordingly entering as
an autonomous abroad establishment is exceptionally troublesome. Joined
undertakings can be a superior method for entering an outside market when setting up
emergency clinics. Be that as it may, there are issues with looking after organizations,
as there are issues of monetary control & assorted variety in desires & the board
styles.
A third certainty is that remote financial specialists will think about numerous
aggressive goals & are probably going to go to business sectors where they are
increasingly acquainted with & which have lucidity about the standards about FDI as
well as about the wellbeing area wellbeing.
 Local challenges : The single most important constraint is the high cost involved
in setting up hospitals, the long gestation period of such investment, & the
relatively low returns on investment. Several senior persons at leading corporate
hospitals stated that hospitals are a very expensive business involving huge
upfront very capital-intensive investments & very high running costs. In addition,
rising operating costs (due to shortages & high procurement costs of certain inputs
as discussed later) further squeeze margins. Thus, investment in hospitals is
characterized by low returns, high capital intensity, & long-term commitment..
Most foreign investors, of course, find it risky to invest in developing nations like
India, where only a few can afford private treatment and/or insurance. It is
therefore more common to see FDI through joint ventures with local partners to
ensure access to qualified personnel & a better understanding of local culture &
characteristics.

ARTICULATION
The Indian human services division falls beneath the global benchmark for physical
foundation & labor, & even falls underneath the gauges that exist in similar creating
nations. Roughly more than one million beds ought to be added to this proportion of
1.85, converting into an all out speculation of $ 78 billion (Rs. 350,830 crores) in the
wellbeing foundation. An extra 800,000 doctors are required throughout the following
10 years, converting into vast interests in preparing offices & gear. To reach
somewhere around 50-75 percent of the present dimension of other creating nations,
the segment will require an expected venture of $ 20-30 billion.

In this way, the Indian social insurance area must be more prominent as far as
accessibility & nature of its physical foundation just as HR). Frequently, the nearness
of FDI in Indian medical clinics is to some degree constrained at present, in spite of
the liberal FDI venture approach in emergency clinics. As per one gauge, outside
speculators have tapped just 10 percent of India's medicinal services showcase & in
this way the inclusion for the FDI in the social insurance part stays substantial.
Because of the developing interest, the rise of best private players, & the tremendous
requirement for interest in the social insurance segment, throughout the years, there
has been developing enthusiasm for outside players & not inhabitant Indians to enter
the Indian medicinal services advertise. There is likewise developing enthusiasm for
worldwide monetary foundations, private value reserves, financial speculators, &
banks to investigate venture openings in a wide scope of portions.

FINANCING OPPORTUNITIES

CURRENT SCENARIO

India opened its arms to foreign investment in the healthcare industry long ago. India
now plans to allow 100% FDI in medical devices. It is a part of a bigger strategy
where the country wants to reduce imports & promote local manufacturing. Med.
technology sector in India was reported to be at around $6.4 billion in 2014, growing
12-14% per annum.

Medical devices sector is the smallest part of India’s healthcare industry & is still
developing. But, in recent times this become one of the fastest growing sectors in
India. Highly under-penetrated, this sector contributed just 8-9% of the costs on
healthcare, compared to 18% on pharmaceuticals. This sector has a increase possible
to touch $60 billion by 2026, if it gets ample govt. maintain & clearness.

Healthcare/Medical equipment financing comprises of Banks offering loans to

doctors, hospitals, diagnostic centers alike for buying or refinancing their existing
medical equipment & expansion of existing healthcare facilities. These loans to value
ratio for health-care tools goes up to a maximum of 85% of the equipment cost,
depending on some parameters.

Generally a majority of SMEs face a problem in getting loans because they have
issues with collaterals & giving guarantors. Getting loans for healthcare equipment is
relatively simple as the equipment itself is adequate collateral.
FINANCIAL STRUCTURE

The financial structure depicts the way the organization has decided to finance its
financial requirements. Broadly there are two major sources to finance the
organization & these are debt or borrowing & equity or owner’s funds. The borrowing
creates interest liability & if the organization is not generating adequate surplus it may
face difficulty in meeting the obligations. Also, the financial structure design has
implications for the overall financial health of the organization, as it determines the
long term solvency of the organization. We use the following measures to discuss the
financial structure of medical equipments industry: (A) total debt to capital employed,
(B) debt-equity ratio & (C) total debt to net fixed asset.

SHORT TERM FINANCING FOR SMES

The Small & Medium enterprises (SMEs) have become a critical part of our country’s
social & economical development. They now play a very important role in creating
jobs, generating income for low-income class groups & hence help foster economic
growth. In short, they are contributing & helping us build a dynamic private sector.
However, these SMEs continue to face a severe problem in terms of access to start-up
funding & timely financing. Easy access to financial services is a major constraint &
is one of the major weakening factors for SMEs in India. However, a lot of
government schemes try & help finance these business startups, & we are halfway
there in bridging the gap. With the growing awareness about the need for SMEs
funding & the popularity of entrepreneurship in the country, many banks – private &
public, offer various kinds of loans with a variety of repayment plans. They pay heed
to the flexibility required by these entrepreneurs & hence structure loans based on
their needs. Repayment plans are tailor made while processes are cut shorter for
easing the financial availability. While it may seem that only start-up capital is an
issue for these SMEs, getting working capital loans are more difficult as collaterals
are required. Cash flow is usually very tricky & can turn around a business anytime.
There are two types of working capital loans offered by these banks/financial
institutions. They are classified as:

 Secured Loans: These are loans for buying machinery or other assets. Banks
help in financing up to 80-90% of the asset value. These loans range anywhere
between INR 10 lakhs & 5 crores.
  Unsecured Loans: These are loans for any other requirements in the SMEs.
Loan amounts start from INR 10 lakhs & above.

Other than these working capital loans, a lot of banks/financial institutions also offer
overdraft facilities, which can serve as working capital to meet your business
requirements. By getting an overdraft facility for your business, you can get anywhere
upwards of INR 10 lakhs as a loan which can be renewed every 12 months at
attractive interest rates. It’s not that cash flow problems only affect small businesses
but if it is a smaller company, the chances of getting stuck in a cash flow problem is
higher. If you are aware of the different possibilities that you can consider, you
shouldn’t have much of a problem sailing through tough times.

PUBLIC PRIVATE PARTNERSHIP

The nation's govt. is committed to the advancement of the PPP model to cover the
supply-supply needs broad in the social insurance area. The mastery of the private
part with operational & support brilliance will prompt improving the conveyance of
mass wellbeing administrations. This model can go about as an impetus in making
new limits & improving effectiveness with existing built up framework. The
Government likewise acknowledged the PPP model to battle pandemics, for example,
H1N1 swine influenza, HIV, & so forth. Notwithstanding, it is clear that this model is
progressively helpful.

The basic achievement factor for PPP are:

• Political office & presentation of the essential guidelines

• Strong control component for proficient administration including debate goals
systems
• Sharing danger through cautious plan of the agreement
• Allow the private area to a 'satisfactory rate of return'
In this model, a SPV is produced for a particular period & for a particular reason that
obviously communicates the medicinal services objectives of private & open division
players. Interest of the private part may incorporate jobs, for example, venture,
loaning & the board. Cooperation in the open part gives greatest effect & advantages
when joined with the accompanying cardinal standards:
1. Giving help with setting up foundation particularly in regions, for example, l&
securing. Social insurance ought to be available to recipients inside sensible time &
remove, & along these lines the prime l& at the sponsored rate can decrease
speculation costs & thusly the cost of wellbeing administrations
2. Structure the PPP explicitly through value investment in the event that it is
conceivable or promise obligation to the sponsored expense of getting & give
expanded occasion charge
3. Give spending plans to capital & working costs of frameworks secured under PPP
if conceivable
4. Guarantee a strategy that does not contend inside a foreordained l& limit where
PPP offices work to guarantee the development & manageability of the model
5. Have unlimited oversight over the objectives of the approach of higher &
equivalent medicinal services through buy understandings behind where one percent
of the beds in the units are saved for recipients recognized by government. In these
cases, the legislature will pay for the administrations got, & the installment is
organized dependent on the bigger budgetary setting of the PPP where the
administration may have financed capital or expenses as referenced in past focuses

ADVANTAGES OF PUBLIC LISTING OF SMES:

The reward of an open SME posting for restorative searching medicinal items are set
out beneath:

• Easier access to value capital & better subsidizing chances: Going open & leaving
an IPO in a SME trade furnishes restorative gadgets SMEs with value financing
chances to develop their business from extension activities of inorganic acquisitions.
Access to value financing decreases the weight of obligation that prompts lower cost
of financing & solid & rich parity of installments.

• Creating Enhanced Value & discharging business investigation on different

occasions. The gauge of an organization is controlled by numerous elements, one of
which is a sort of organization if freely recorded or secretly constrained. The
advancement of open capital issues will improve the presence of the organization.
More extensive open mindfulness increased through media inclusion, freely given
records & stock inclusion through part speculation experts will give therapeutic
gadgets SMEs with more profile & validity. This may result in progressively assorted
gatherings of financial specialists, which may exp& interest for organization shares
prompting an expansion in organization esteem & improved esteem creation.

• Balanced Risk Management for supporters: The SME open rundown will help
therapeutic gadgets SME backers & proprietors to disperse business hazards
productively. The organization list encourages the development of the speculator
base, which enables the organization to pick up an optional market for value
financing, including private situation.

• Easier & productive section & leave stages for private value & other vital
speculators prompting expanded support from private value financial specialists:
Having a market-driven straightforward exchanging stage gives a prepared & simple
passage & exit for vital financial specialists. The Listing does not just offer financial
specialist adaptability for section & exit, yet additionally the certainty required for
any such exchanges. The rundown will result in a higher cooperation of funding
players as they will have a prepared, straightforward & effective expense leave
course.

• No long haul charge deducted by the capital: Usually, unlisted exchange of offers
pulls in long haul capital pay assessment of 20% & momentary capital additions of up
to 30%. While in the recorded offers, long haul capital duty cost is missing &
momentary capital increases are 15%, if the exchange is liable to securities exchange
charge (STT). The one of a kind exchange charge treatment of recorded offers is
additionally accessible in offers recorded on the SME Exchange. The posting on SME
Exchange is a substantial duty arranging instrument & may, in this manner, lead to
monstrous expense putting something aside for medicinal gadgets & SME financial
specialists.

• There is no assessment on crisp value in the organization: Recently, the Fiscal Law,
2012 forced an expense risk on new value arrival of an unlisted organization to
financial specialists other than "Supported Funds Registered" , if the issuance is made
at a sum more than the decent measure. It can make SMEs subject to overwhelming
tax reductions, as they frequently go for raising assets by issuing value to financial
specialists. Nonetheless, such duty risk does not offer if the organization's offers are
recorded on recognizing stock trades, including SME Exchange.
• Change SME medicinal gadgets to Global MNCs, corporate picture creation, better
perceivability & solid br& building: Going for an open issue will probably improve
the perceivability of the organization. The more extensive open mindfulness increased
through media inclusion, & the direct of research through speculation division experts
furnishes SMEs with more extensive perceivability & brand-building help where one
can remain dream particularly for SMEs.

• The SME posting in stock trade can encourage development through vital
speculations & mergers & acquisitions of SMEs & private value from both local &
universal speculators: Medical gadgets SME organizations in their attempting to have
a forward or in reverse reconciliation for development & extension can take a vital
wager on other therapeutic gadgets SMEs. Local & International financial specialists
trust the recorded SMEs. SMEs are probably going to get key ventures from both
residential & universal financial specialists just as from private value & vital
speculators. Rather than an immediate money offer, utilizing an offer buy can be a
successful duty & viable vehicle to reserve such exchanges.

• The motivator instrument for representatives: The ESOPs & some other parts
dependent on the pay plan of the recorded organization have a prompt & explicit
incentive to workers. This, thusly, fills in as an ability maintenance instrument. This
will guarantee a more grounded worker pledge to the organization's execution &
achievement.

• Strong corporate administration & the executives: Even however the prerequisites
for an organization recorded on the SME Exchange are not carefully for recorded
Main Board organizations, anyway the SME posting guarantees that the organization
set interior controls s
KEY CHALLENGES
 CONCLUSION

The administration permitted 10 0 % outside interest in the restorative gadget division

under the programmed course to energize residential assembling & possibly open up
existing Indian organizations in the part to draw in remote capital. Postponing gauges
for the restorative gadget industry by making exceptional etching on existing FDI
approach in the pharmaceutical segment will empower FDI streams. Under current
tenets, even 100% outside venture is permitted in brownfield pharma (existing Indian
organization) remote financial specialists need to look for consent from the Foreign
Investment Promotion Board before getting an Indian organization. This condition has
now fallen on account of restorative gadgets, successfully fusing another sub-
classification for medicinal gadgets inside the pharmaceutical part. The SME posting
opportunity window is accessible in vast scale restorative gadget organizations who
need to raise capital for development & extension. Arrangement & arranging are
imperative. Absence of arrangement & legitimate arranging can harm a SME IPO.
The SME & IPO postings are a long procedure & include a gigantic measure of work
& arranging, for example, assembling an account of equity, solid budgetary outcomes,
convenient & exact money related & bookkeeping data, solid inside control, qualified
administration administrator, corporate administration & speculator relations. In the
event that SMEs need to change into a recorded organization, begin preparing by
reaching us. By power from different government plans, for example, Rs. 100 billion
SME investment reserves, India will at last come to be known as an assembling goal
for refined therapeutic innovation. Worldwide restorative innovation organizations
additionally use India as an assembling base either by setting up their very own
offices or by getting residential producers. The legislature likewise endeavors to
support advancement & improvement extends in medicinal gadgets & innovations.
The Indian government additionally takes a gander at FDI's loose FDI arrangement
for the money starved restorative gadgets division to pull in more speculations & lift
fabricating & in this way demonstrate an open door in the Indian medicinal gadgets
industry to make a domain for the advancement of development & fortifying of
assembling to accomplish economical development in the nation.
The expansion in the dynamic working populace will have the suggestion on the
accessibility & efficiency of the work forward, mirroring the requirement for
successful preparing, improvement & utilization of HR; a job that the social insurance
part should play viably for its favorable position throughout the following decade.
The Healthcare segment in India assists with amazing advancement & the
requirement for time is to channel the present & future therapeutic & innovative
accomplishments to the advantage of the Indian populace. All partners including
Government & Industry must assume suitable job in the improvement of this division.

There is a sobbing interest for present day innovation in India to address social
insurance issues. The adjustment in therapeutic innovation requires a dynamic &
partaking biological system comprising of patients, restorative focuses, colleges,
industry, wellbeing & medical coverage organizations.
 REFERENCES

References can be depicted here based on the Review of Literature on various

projects, reports, journals, articles & papers related to the project title. The Review of
Literature is given below:

1.
Indian Br& Equity Foundation (IBEF). (2014). Healthcare.
www.ibef.org.fromhttp://www.ibef.org/industry/healthcare.aspx
2.
Indian Semiconductor Association. (2014). Current status & potential for
medical electronics in India.
http://isaonline.org/documents/ISA_MedElecn_Executive_Summary__Dec_2
010.pdf
3.
United Nations, Department of Economic & Social Affairs Population
Division. (2012). World Population Ageing 2012. A United Nations Report
(ESA/P/WP/212) from
http://www.un.org/esa/population/publications/WPA2009/WPA2009_Workin
gPaper.pdf
4.
Ministry of Health & Family Welfare, Government of India. (2011). Annual
Report 2010-2011.Retreived from
http://mohfw.nic.in/WriteReadData/l892s/9028879081Annualreportpart-1.pdf
5.
Report from International Monetary Fund
6.
WHO- Global Health Observatory Data Repository 2010
7.
Ministry of Health & Family Welfare, Government of India. (2010). Annual
Report 2010-2011.Retrieved from
http://mohfw.nic.in/WriteReadData/l892s/9028879081Annualreportpart-1.pdf
8.
WHO (20010). Country Cooperation Strategy 20010-2011, India. World
Health Organization- Country Office for India, New Delhi. Retrieved from
http://www.who.int/countryfocus/cooperation_strategy/ccs_ind_en.pdf
9.
IBEF (2008). Healthcare. www.ibef.org. Retrieved from
http://www.ibef.org/artdisplay.aspx?art_id=17566&cat_id=60&page=2
10.
WHO- Global Health Observatory Data Repository 2009
11.
United States International Trade commission. (2010). India’s Medical Device
Sector: Increasing U.S. Export Opportunities. MihirTorsekar, Office of
industries. Retrieved from
 http://www.usitc.gov/publications/332/executive_briefings/FINAL_EBOT_tor
sekar_0630.pdf
12.
Ministry of Health & Family Welfare, Government of India. (2011). Annual
Report 2010-2011.Retrieved from
http://mohfw.nic.in/WriteReadData/l892s/9028879081Annualreportpart-1.pdf
13.
Swarup Anil (2008): ―RashtriyaSwasthyaBimaYojna: providing Health
insurance Cover to Poor People‖, presented on Asia-Pacific Regional High-
Level Meeting on Socially-Inclusive Strategies to Extend Social Security
Coverage, New Delhi, India, 19 –20 May
14.
www.rsby.gov.in
15.
www.iphindia.org
16.
http://ifmr.ac.in/cirm/health-intro.htm
17.
Outreville, JF (2007). Foreign direct investment in the health care sector &
most-favored locations in developing countries. European Journal of Health
Economics, 8, 305–312. Outreville, JF (1998). The health insurance sector:
Market segmentation & international trade in health services. In UNCTAD–
WHO joint publication, International Trade in Health Services: A
Development Perspective. UNCTAD–WHO Geneva.
18.
Reserve Bank of India (2007). Note on foreign investments in India, Mumbai,
April 1. Sharma, A (2008). Needed: Lots of patience, Indian hospitals are
learning to grow healthy. Outlook India.
http://www.outlookindia.com/article.aspx?238340.
19.
Government of India. Government Union Budget. 2014. Available from:
http://indiabudget.nic.in/budget.asp, accessed on March 25, 2015.