business opportunities in private hospital sector in india
TRANSCRIPT
Business Opportunities in
Private Hospital Sector in India
Time to seize the business opportunity
The Growth of Healthcare Industry in India
• Indian government has decided to increase its health expenditures to 2.5 % of GDP by the end of 2017
• Healthcare sector is expected to reach USD 100 billion by 2015 - this means annual growth rate of 20%
• The hospital service industry in India is growing very fast with CAGR of 9%
• Medical tourism industry is important revenue source (~20% of revenues) for hospitals – it is worth of $2 billion and growing annually 20%.
• Three identified growth sectors are oncology, orthopaedics and cardiology
• 100 per cent FDI is permitted for health and medical services
• Reduction of customs duty for 5-7.5% on all medical, surgical and dental equipment
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Private Hospital Sector in India
• Private sector accounts for 65% of the total number of operational beds and over 80% of the healthcare spending
• It is expected to grow 24.1% annually until 2020 - it will contribute 80% of the USD 86 billion healthcare investment required until 2025
• In the private sector supply processes for new procurements are shorter and more flexible than in the governmental hospitals
• Private sector provides special healthcare services -they have need for specialized technology and services • Apollo Telemedicine Network
Foundation
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Major Private Hospital Chains in India in Figures
Name Hospitals Beds
Apollo Hospitals 54 8,717
Fortis Hospitals 48 6,292
Manipal Hospitals 15 3,700
CARE Hospitals 12 1,600
MAX Healthcare 11 1,100
Sterling Hospitals 6 1,027
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The Presence of Major Private Hospital Chains
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CARE Hospitals
Hyderabad 2
Nampally 1
Secunderabad 1
Visakhapatnam 1
Nagpur 1
Raipur 1
Bhubaneswar 1
Surat 1
Pune 1
Vizag 1
Fortis Hospitals
Amritsar 1
Bangalore 6
Chennai 1
Faridabad 1
Gurgaon 1
Jaipur 1
Kolkata 3
Mohali 1
Mumbai 3
New Delhi 4
Noida 1
Raipur 1
Manipal Hospitals
Bangalore 5
Tumkur 1
Salem 1
Mangalore 1
Vijayawada 1
Goa 1
Visakhapatnam 2
Apollo Owned Hospitals
Chennai 9
Hyderabad 8
Kolkata 2
Delhi 2
Bangalore 1
Ahmedabad 2
Other India 12
MAX Healthcare
New Delhi 9
Mohali 1
Bathinda 1
Sterling Hospitals
Ahmedabad 1
Vadodara 1
Rajkot 1
Mundra 1
Bhavnagar 1
Adipur 1
Chennai
New Delhi
Ahmedabad
Mumbai Kolkata
Bangalore
Hyderabad
Jaipur
Raipur
Oncology Sector in India
• Indian oncology market is expected to grow strongly in the coming years:
– rising incidence of cancer
– improved diagnostic capabilities
– improved access to cancer therapies
– better health insurance coverage
• As the Indian economy continues to grow, more people will gain the financial ability to seek cancer treatment, while the growing middle class will drive demand for innovative branded therapies
• While domestic companies dominate the market with branded generics, all major multinational pharmaceutical companies have a presence in India, targeting a small but significant part of the population that can afford the price premium associated with global brands
• Plans to increase government expenditure on health and improve access to cancer drugs will also drive the uptake of cancer therapeutics in the future
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Orthopaedics Sector in India
• With a growing population of potential patients, rising
awareness about the impact of joint problems, and the
importance of surgical treatments, the market for orthopaedic
implants promises to be one of the most lucrative segments in
the Indian medical device market
– estimated to grow to USD 878.3 million by 2017
– surgical expenses are 60-80% lower than U.S. costs
– Indian orthopaedic joint replacement market is expected to grow
26.7% CAGR during 2010-2017
– over 70,000 hip and knee replacements are performed every
year
• Growth drivers: increase in aging population, sedentary
lifestyle, booming economy, better healthcare infrastructure
and the opening up of the insurance sector
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Cardiology Sector in India
• India is likely to emerge as the
global capital of heart diseases
by 2025 (WHO)
• Interventional cardiology market
in India is estimated to grow at
a CAGR of 25.5% over the
period 2011–2015
– One of the key factors
contributing to market growth is
the increasing incidence of
cardiovascular diseases
• The robotic surgery in
interventional cardiology
procedures is increasing as way
of treatment
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Opportunities in Private Hospital Sector in India
• Business opportunities for Finnish companies exist:
– Laboratory analyzers and diagnostic kits
– Diagnostic devices applicable for telemedicine applications (e.g. imaging systems, spirometer, ultrasound)
– Surgical instruments
– Equipment for surgery departments
– Health IT (HIS, LIMS, PIS, Telemedicine)
– High-end medical furniture
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Opportunities in Green Hospitals in India
• Green buildings are a market worth of USD 30 billion in India with growth rate of 10-15% during the next decade
• Opportunities for Finnish companies exist especially in:
• Buildings: structural design, indoor air quality, resource efficiency, automation and monitoring
• Waste: source reduction and segregation, waste water management, treatment and disposal, water use efficiency
• Water: collection and segregation, transportation and storage, disposal techniques and treatment technology
• Energy Efficiency: air-conditioning, lightning and electrical, boilers and hot water solutions for energy efficiency
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Entry Options Partner Search
Test Drive Direct Sales
Improving the
Market Position
Establishing the
Presence
Finpro Navigator
Planning The
Market Entry
Preparing the
Growth
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10/22/2013
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Christine Grumbach
Senior Consultant
Head of Health Technology sector
christine.grumbach(a)finpro.fi
Tel +49 171 8893 000
Seppo Keränen
Regional Sales Manager
India, Middle-East, Africa
seppo.keranen(a)finpro.fi
Tel +358 400 535 907
Anna Erkkilä
Senior Consultant
Region Finland
anna.erkkila(a)finpro.fi
Tel +358 40 3433420
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