india : performance of medical devices industry...india among the top-20 markets for medical devices...
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India : Performance of Medical Devices Industry
Quarterly Update: Q1 FY 2021 (Apr’2021 – Jun’2021)
August, 2020
Authored by: Yogesh Sharma, Consultant (Healthcare Practice)
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Key Economic Indicators
5th
Largest economy in the world
1.5% Of real GDP
spent on healthcare in
FY17
USD 2.1 Bn
Total FDI Inflows in Medical Device
Industry since Apr 2000
800+ Private players
in India
4th Largest market in
Asia
75-80 % Medical Device Import
Dependency
USD 11 Bn
Indian medical device industry in
FY20
USD 372 Bn
Total healthcare Industry market size
expected by 2022
Bn: Billion; CPI: Consumer Price Index; FDI: Foreign Direct Investment; GDP: Gross Domestic Product; GW: Giga Watt; Mn: Million; MW: Megawatt; TWh: Tera Watt Hour USD: United States Dollar
Source: IBEF, CEA (Central Electricity Authority)
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Photo from Needpix
2.5
3.9
11
0
2
4
6
8
10
12
2010 2015 2020
USD
Bill
ion
Bn: Billion; CPI: Consumer Price Index; FDI: Foreign Direct Investment; GDP: Gross Domestic Product; GW: Giga Watt; Mn: Million; MW: Megawatt; TWh: Tera Watt Hour USD: United States Dollar
Medical Devices Industry Trend
Medical Devices Industry Trend Market Share, By Segment
Source: IBEF, CEA (Central Electricity Authority)
Diagnostic imaging
30%
Consumables 16%
IV Diagnostics 10%
Patient aids 9%
Orthopaedic prosthetics
8%
[CATEGORY NAME]
[PERCENTAGE]
Other medical devices
24%
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Facts and Figures
Bn: Billion; CPI: Consumer Price Index; FDI: Foreign Direct Investment; GDP: Gross Domestic Product; GW: Giga Watt; Mn: Million; MW: Megawatt; TWh: Tera Watt Hour USD: United States Dollar
Source: IBEF, CEA (Central Electricity Authority)
India among the top-20 markets for medical devices in the world and 4th in Asia after Japan, China and South Korea
Indian Medical device industry values at USD 11 Bn is expected to reach USD 50 Bn by 2025
Over 65% of manufacturers in India are domestic players operating in consumables segment with limited exports whereas, high technology end is lead by large Multinational Corporations
Manufacturing of Medical devices in India is spread across six manufacturing clusters across country ₹
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The Medical Devices Industry is poised for significant growth in next five years
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Government Initiatives & Policies
• Govt. brought all medical devices under regulation as drugs through Medical Devices Amendment Rules, 2020
• Production Linked Incentives Scheme for medical devices manufacturing with outlay of ~USD 500 Mn during the scheme tenure 2020-21 to 2025-26
‒ Incentive @ 5% of incremental sales (2019-20) will be provided on identified segments of medical devices such as Cancer care/Radiotherapy, Radiology & Imaging, Anaesthetics & Cardio-respiratory, and all Implants.
• Funding for Medical Device Parks in country aimed at reducing the manufacturing costs of medical devices
‒ Investment of ~USD 57 Mn for Financing Common Infrastructure facilities in 4 Medical Device Parks
• GoI constituted Empowered Group of Secretaries (EGOS) to attract investments in India by providing investment support and facilitation to global investors. The EGOS will also coordinate with various departments and ministries to ensure timely clearances
Key Headlines • “Medical technology industry has suffered around 50-85 per cent drop in
revenue during April-June2020 with a decline in elective surgical procedures at hospitals due to COVID-19 situation” – Medical Technology Association of India (MTaI)
• HHES & Medical Services Pvt Ltd. to invest USD 132.24 Mn for Medical Equipment Manufacturing Project in Sikkim
• Biocon’s subsidiary company Biocon Biologics valued at USD 3.5 bn after investment of USD 30 Mn by Tata Capital Growth fund
Upcoming Events
• Expodent Bengaluru 2020, by Association of Dental Industry & Trade of India (ADITI) on Sep 05-06,2020
Bn: Billion; CPI: Consumer Price Index; FDI: Foreign Direct Investment; GDP: Gross Domestic Product; GW: Giga Watt; Mn: Million; MW: Megawatt; TWh: Tera Watt Hour USD: United States Dollar
Source: IBEF, CEA (Central Electricity Authority)
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Import Export Trend
*Quarterly data for June2020 not yet published
Number of PPP Deals, By Healthcare Level
FDI Investment in Indian Medical Devices Sector
CEA: Central Electricity Authority; FY: Financial Year; GoI: Government of India; GW: Giga Watt; NTPC: National Thermal Power Corporation; M&A: Merger and Acquisition; MW: Mega Watt; Q: Quarter; USD: United States Dollar
Source: Tecnova Research, CEA, IBEF, GoI, Industry Reports
4.4
5.3
5.9 5.7
1.9 2.3 2.3 2.4
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
FY2017 FY2018 FY2019 FY2020
Import Exports USD Billion
1.0
0.6
0.4
0.2
0.0
0.2
0.4
0.6
0.8
1.0
1.2
Q1FY2020 (Apr-May19) Q1FY2021 (Apr-May20)
Import ExportUSD Billion
2 3
2
3
1 1
3
1
1
1
2
1 1
1
3
2
3
2
1 1
4
5
3
1
8
4
2
6
4
0
2
4
6
8
10
2010 2011 2012 2013 2014 2015 2016 2017
Network Primary Care Secondary Care
Tertiary Care Diagnostic/Dialysis
173.0
480.0
87.0
157.0
309.0
0.0
100.0
200.0
300.0
400.0
500.0
600.0
FY2016 FY2017 FY2018 FY2019 FY2020
(USD Billion)
(USD Million)
(USD Billion)
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Major Investment • USD 600 Mn FDI received in last 5 years in medical devices sector
• Delhi based startup Crimson Healthcare raised USD 2,50,000 from Mumbai Angels Network
• Aster DM Healthcare acquired Warseps Healthcare involved in developing, manufacturing & trading of medical devices
CEA: Central Electricity Authority; FY: Financial Year; GoI: Government of India; GW: Giga Watt; NTPC: National Thermal Power Corporation; M&A: Merger and Acquisition; MW: Mega Watt; Q: Quarter; USD: United States Dollar
Source: Tecnova Research, CEA, IBEF, GoI, Industry Reports
Capacity Addition • HiMedia ramped up VTM kits capacity from 500,000 per annum to 500,000 per
day to cater rising COVID-19 testing demand
• Omron partners with Lupin to strengthen respiratory disease management with special focus on Asthma & COPD patients
New Launches • Omron India enters Telemedicine segment in partnership with Phablecare
• J Mitra & Co launched indigenous ELISA based antibody test kit for COVID-19
• Smart Swab collection Kiosk dev. by Wipro GE Healthcare launched in Bangalore
Tecnova’s Experience in Medical Device Industry
• Market opportunity assessment for European medical device manufacturer
• Go to Market Strategy for Germany based medical device manufacturer
• Regulatory approval for Germany based medical device manufacturer
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For any further enquiries, please contact
Sunil Kumar
AVP – Healthcare Practice
Execution
Tel: +91 124 4356 443
Mobile: +91 9818069742
Email: [email protected]
Ashish Garg
Manager - Marketing
Sales and Marketing
Tel: +91 124 4356 347
Mobile: +91 9871750121
Email: [email protected]
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