Healthcare An Unprecedented Opportunity

Healthcare  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

India - An Introduction  Population  States/UTs  Geographical Area  Languages recognised  Business language  Per Capita Income**  GDP** Over 1 bn mn sq kms 22 English US$ 534 US$ 650 bn **(at factor cost & at current prices) 1USD=43.54 INR (as on July 4, 2005) Source:CSO Statistics

India - Fast pace Growth  Largest democracy  4th largest economy by PPP index  6th largest energy consumer  ForEx reserves skyrocket from US$ 42 bn (2001) to US$ 133 bn (February, 2005)  GDP growth to continue between 6-8%  3rd largest economy by 2050: Goldman Sachs  Leading in IT & BPO  Oil & Gas and Biotechnology sunrise industries

India - Leading the world  Hero Honda - largest manufacturer of motorcycles  Moser Baer - among the top three media manufacturers in the world  Pharmaceutical Industry - 4th largest in world  Walmart, GAP, Hilfiger sources more than USD 1bn worth apparel from India  100 Fortune 500 have set R&D facilities in India including GE, Delphi, Eli Lilly, HP, Heinz and Daimler Chrysler

Healthcare  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

Million, Per cent, Healthcare Education Retail banking Power Railways Telecom Hotels, restaurants IT Healthcare Delivery Market RevenuesLargest service industry EmploymentSecond largest after education SectorDirect employmentRevenues/GDP Source: National Accounts Statistics, 2001; Manpower profile; CBHI; McKinsey analysis

 Growing at 13% p.a  Expected to grow at 15% over next 4-5 years Healthcare Delivery Market Size US$ 18.7 bn 5.2% of GDP US$ 45 bn 8.5% of GDP 2012 (projected)* * Source: CII – McKinsey

5.2% of GDP Total Healthcare market Pharma market Healthcare delivery market India spent US$ 22.4 billion on healthcare (2001) Rising Healthcare Spending

Out-of-pocket Prepayment Two-thirds of healthcare spending is out-of-pocket Household - Major Consumer 100% = USD 1,830 million Government’s spend Private/social/ community insurance Employer’s spend Direct household spend Source:NSSO;CMIE;NCAER;Annual Reports;Govt Budgets;Economic Survey

Government & public employers Private providers 100% = USD 1,830 million In terms of delivery, private providers capture 63% of US$ 1,830 million spend Healthcare - Private sector Dominates Source: CII -McKinsey

Health Insurance in India  Liberalising insurance sector  Multinationals building local partnerships

Health Insurance in India  Growth of insurance cover100% in last 2 years  Health insurance cover % of 1 billion population

Healthcare  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

MNCs in India Philips emerging as number two in Indian medical systems market Siemens leading manufacturer of medical equipment Proton Healthentering India with digital health Caremonitoring devices Drager Medicaljoint venture between Dragerwerk AG AG and Siemens AG Wipro GE largest medical systems sales & Medical Systemsservice provider in India

Healthcare  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

Invest in India India requires US$ 25 billion in fresh investments over the next 8-10 years Source: Indian Healthcare Federation, CII

 Service providers  Manpower training  Infrastructure  Insurance  Materials Curative and preventive in primary, secondary and tertiary care; rehabilitative- geriartric and others Doctors, managers, nurses, technicians Medical equipments & service equipments Hospitalisation Medicines disposables Invest in India

Preventive and curative care Rising demand for multi and super-speciality services Shift from infectious to lifestyle diseases 85% of inpatient spend on five categories Cardiology, Oncology, Trauma, Acute Infections and Maternity

In ten years between and , aggregate household expenditure on health services increased by an annual compounded rate of 9.3% Rising demand for quality healthcare

Corporatisation of Indian healthcare Corporate hospitals 150 Private hospital beds 32% of total hospital beds

Only 2.5 million or.25% of population insured 315 million people in India can afford insurance Health Insurance - A vast untapped market

Projected insurance base million million Health Insurance - A vast untapped market Source: India Country Commercial Guide 2002

Addressable population for preventive healthcare check-ups 160 million Year - on - year growth more than 20-25% over Preventive healthcare

By 2008 USD 4.5 billion opportunity employing 200,000 people* Forms processing Medical billing Disease coding Claims adjudication Healthcare BPO - Promising dynamism *Source: NASSCOM

 Rural population of 650 million people Telemedicine - Diversifying opportunity  Tap the large Indian landscape

The Indian Biomedical Devices Market  SizeUS$ 1.5 billion  Growing demand for medical equipment

Healthcare  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

Growing population 2.5% annually Expanding working population group 65% by 2020 Improving life expectancy Age % % Demographic Advantage

23,000 Primary Health Centres 132,000 Sub-centres 2,400 Community Health Centres 1500 urban health posts 1,200 ESI and PSU hospitals 117 tertiary medical colleges and hospitals 4,400 district hospitals Urban Tertiary Care Secondary Care Primary Care Rural Infrastructure

 Healthcare facilities - high quality at low cost  Edge in surgical treatment Potential to earn USD 1 billion from medical travel Medical Tourism

Cost of advanced surgeries in India is attractively low compared to US Cost Advantage 2,50,00030,000 Bone Marrow Transplant 30,0005, ,000Heart surgery 5,00,00040,000Liver Transplant IndiaTreatment All figures in USD US

Low in cost High on quality Quality Advantage Services and facilities in India

Increase in5% of GDP by 2010 health spend Increasing budgetary Over 20 % per annum allocation 2005 Union Budget Infrastructure status not conferred Custom Tariff on Rates reduced from20% to 15% medical equipment Policy Advantage March 2005

Healthcare  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

Indian Healthcare Federation c/o Confederation of Indian Industry The Mantosh Sodhi Centre 23, Institutional Area Lodi Road New Delhi Tel Fax / E mail Contact in India