Medical Devices

Medical Device Market Share 2.5 Bn $ Current Valuation of Indian Medical Electronics Industry - 5.0 Bn $ Valuation of Indian Medical Electronics Industry by 2020 17% Indian Medical Electronics CAGR

Asia Pacific countries excluding Japan and China are growing at a much faster pace In addition, on a manufacturing cost competitiveness index, India has amongst the lowest direct manufacturing costs of the world’s 25 top exporting economies While India’s wage growth nearly matched the productivity growth from 2004 – 2014, China witnessed a 4 times rise in wages compared to productivity over the same period

India – The perfect recipe for growth On a manufacturing cost competitiveness index, India has amongst the lowest direct manufacturing costs of the world’s 25 top exporting economies While India’s wage growth nearly matched the productivity growth from 2004 – 2014, China witnessed a 4 times rise in wages compared to productivity over the same period 300% Average household income increase over the next decade 360% Rise in consumption by 2020 With rising household incomes and consumption patterns, coupled with lowest direct manufacturing costs, India is at the cusp of a manufacturing revolution BCG - Global Manufacturing Cost - Competitiveness Index

Influencing Factors- Indian Medical Device Industry Economics based factor Technology Mismatch As per the world bank estimate India spends only 1 % of its overall GDP on Public health The onus is on Private sector to step in and expand 75% of devices are currently imported There is a mismatch between design/ technology of some devices and clinical conditions Local market Sentiments Regulatory environment Medical Device Industry Lack of awareness amongst the Indians on disease management Lack of infrastructure for preventive measures Poor local economy Medical devices in India are regulated by CDSCO and follows Drugs and Cosmetic rule with lot of ambiguity Health care providers Reimbursement policies Corporate style hospital chains providing excellent service Imperative for device manufacturers to identify right service providers which cater to target population Health insurance schemes by Central / State governments for poor at affiliated hospitals Only 10% are benefited from the state sponsored insurance schemes

Growth Strategy – Indian Medical Device Market Indian Medical Device Market is Unique and dynamic in nature, mainly influenced by local sentiments and challenges There are strategies that the device manufacturers can adopt to maximize their market share Local Partnerships Indigenous technology firms have a better understanding of the market and regulations Local talent is aware about the tax duties and import implications Adopt Technology Advertisement of medical devices is not allowed in India and depends on B2B sales with Medical reps visiting hospitals Digital Marketing platforms such as PDAs, Tablets etc should be used to reach the prospective customer Add value to stakeholders Indian consumers are willing to pay a premium for quality medical devices It is imperative that Medical device manufacturers provide the same quality and value added services as in western countries to Indian consumers Regulators in India will play a major role in expansion and growth of Indian Medical Device Market targeted at 5 Bn$ by 2020

Major Players - Indian Medical Device Industry

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