market research report : cardiac pacemaker market in india 2014 - sample

August 2014

Cardiac Pacemaker Market – India

2 CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT

Executive Summary

Market

Drivers & Challenges

Competitive Landscape

Cardiac pacemaker market in India is exhibiting a volume-wise CAGR of x1% over 2012-18e and value-wise CAGR of x2% over the same period

The industry is dominated by foreign companies

Hospitals sell pacemakers as well as offer complete packages to patients

Drivers:

Changing demographics

High rate of cardiovascular diseases

Low market penetration

Growing awareness

Changing Insurance coverage structure

and business model

Challenges:

Lack of standard regulatory

structure and government

initiatives

Unwillingness to spend on

medical devices

Weak manufacturing base

Trends Product innovation

Focus on low cost goods

Significant presence of MNCs

Major Players

Company 1 Company 2 Company 3

Company 4 Company 5 Company 6

3

•Macroeconomic Indicators

•Introduction

•Market Overview

•EXIM

•Drivers & Challenges

•Trends

•Competitive Landscape

•Strategic Recommendations

•Appendix

CARDIAC PACEMAKER MARKET IN INDIA 2014.PPT

4

Economic Indicators (1/3)

11

12

13

14

15

INR tn

Q4

c4

b4

a4

Q3

c3 b3

a3

Q2

d2 c2

b2

a2

Q1

d1 c1

b1

a1

2013-14 2012-13 2011-12 2010-11

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

-2

-1

0

1

2

q

Aug 2013 - Sep 2013

r

Sep 2013 - Oct 2013 Jul 2013 - Aug 2013

p

Nov 2013 - Dec 2013

t

Oct 2013 - Nov 2013

%

s


5

Cardiac pacemaker market is poised to grow at a steady rate in the future

• Cardiac pacemaker market in India offers strong

potential for both existing and new players

• India along with Country A are the growing markets

for cardiac rhythm management products of which

pacemakers form the largest part

• Majority of players are foreign companies with

distributors or subsidiaries in India

These companies have been able to strengthen their

foothold in the market due to their brand recognition,

reliability and technological superiority

• Domestic players make significant investments and

rely on profits generated in India as well as abroad

While some players purely operate in India, others have a

global presence

Smaller players utilize product differentiation strategies

rather than reduced pricing methods to maintain their

foothold in the market

• Improvements in technology such as the invention of

leadless pacemakers will further aid growth in the

market

Market Overview (1/3) Market Size & Growth (Volume-Wise)

0

50

30

40

20

10

2013

c1 d1 f1

‘000

a1

2016e

+x1%

2012

g1

b1

2017e 2015e 2018 2014e

h1

Healthy growth rates provide an impetus to existing and potential players to invest in the market

Market Size & Growth (Value-Wise)

0

2

4

6

2016e

f2

INR bn

2018

c2

2017e 2014e

g2 +x2%

a2 b2

2015e 2013

h2

2012

d2


6

Although low cost products are exported to other countries…

• Export of pacemakers from India has been increasing over the past few years

• Number of countries to which pacemakers were exported has also decreased over the years

• Products are mostly exported to the countries in Region A

• Strong domestic market and weak manufacturing base is responsible for fluctuating exports

Exports – Overview Export of Cardiac Pacemakers

Export (Region-Wise: 2013-14; Apr - Dec)

0

50

100

0

1

2

3

f1 b1

‘000 units

2013-14 (Apr - Dec)

c2

2011-12

INR mn

d1

2010-11

f2

c1

d2

2012-13 2009-10

a1

a2 b2

Value Volume

s1%

p1%

r1%

q1% t1% u1%

Export (Region-Wise: 2012-13)

Country 5

Country 2

Others

Country 1

Country 4

Country 3

Note: Figures are for respective financial years

s2%

r2% t2%

q2%

p2% u2%

Country 2

Country 1

Others

Country 5

Country 7

Country 4


7

Drivers & Challenges – Summary

Drivers

Changing demographics

High rate of cardiovascular diseases

Low market penetration

Growing awareness

Changing Insurance coverage structure and business model

Challenges

Unwillingness to spend on medical devices

Weak manufacturing base


8

Trends – Summary

Trends

Improvements in Technology

Monitoring via Internet Reuse


9

Porter’s Five Forces Analysis

Competitive Rivalry

Bargaining Power of Suppliers

Bargaining Power of Buyers

Threat of Substitutes

Threat of New Entrants

Impact

Impact

Impact

Impact


Impact

10

Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3)

Competitive Benchmarking (1/3)

0

2

4

6

8

Company 1

a1

b1

a2

%

Company 3

b2

Company 2

c1 c2

Net Margin Operating Margin

• Company 3 recorded operating margin of c1%, lower than that of Company 1 which recorded operating margin of a1%

but higher than Company 2 which recorded operating margin of b1%

• Company 1 recorded the highest net margin of a2%, higher than Company 3 which recorded a net margin of c2% and

Company 2 which recorded a net margin of b2%


11

Public: Domestic Company – Company 1 (1/4)

Key People

Products and Services

Company Information Offices and Centres – India

Category Products/Services

Name Designation

Person 1 Chairman and MD

Person 2 Whole Time Director

Person 3 Whole Time Director

Pithampur

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange


Head Office

12

Financial Snapshot Key Ratios

Financial Summary

• Company earned a net profit of INR XX mn in FY 2013, as compared to net profit of INR Y mn in FY 2012

• It reported total Income of INR XX mn in FY 2013, registering an increase of X per cent over FY 2012

• It earned an operating margin of X.X per cent in FY 2013 an increase of X.X percentage points over FY 2012

• The company reported debt to equity ratio of X.XX in FY 2013, an increase of X.X per cent over FY 2012

Key Financial Performance Indicators

Indicators Value (dd/mm/yyyy) Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

EPS (INR)

PE Ratio (Absolute)

Particulars y-o-y change

(2013-12) 2013 2012 2011 2010

Profitability Ratios Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Improved Decline

Net Profit/Loss Total Income

0

20

40

60

80

-4

-2

0

2

2011

-b2

b1

2010

a2

a1

INR mn INR mn

2013

d2

d1

2012

c2

c1



13

Key Business Segments Key Geographic Segments

Business Highlights

50%

0%

100%

2013

Category 1

0%

50%

100%

p2% r2%

2008

q1%

2010

s2%

p1%

q2%

2009

r1% s1%

2011

Description News

Overview • Operates with its subsidiary, Company A

Business • It has its plant located at City 1 • Has a licensed and installed capacity of producing ‘y’ number of pacemakers annually • The company is also into the business of contract manufacturing

Pacemakers • They make both internal as well as external pacemaker • The permanent pacemakers are available in various modes such as : Model 1, Model 2, Model 3 and

Model 4

Shareholders • Promoters occupy ‘a’% of the shares whereas general public hold ‘b’% of the shares

Awards and Recognitions • Received ISO 9001:2000 certification in 2007

Total revenue for the company has been

coming from only this segment for last 5 years

Region 1 Region 2



14

T O

W S

Public: Domestic Company – Company 1 – SWOT Analysis (1/4)


15

Key People

Products and Services

Company Information Offices and Centres – India

Category Products/Services

Name Designation

Person 1 Director

Person 2 Director

Person 3 Director

Bangalore

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation


Private: Domestic Company – Company 2 (1/5)

Head Office

16

Shareholders of the Company as on 30.09.2013 Ownership Structure

Name No. of Shares held

Entity 1

Entity 2

Entity 3

Total

c%

b%

a%

Category 3

Category 1

Category 2



17

Financial Snapshot Key Ratios

Particulars y-o-y change

(2013-12) 2013 2012 2011 2010

Profitability Ratios Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Improved Decline

Financial Summary

• Company earned a net profit of INR XX mn in FY 2013, as

compared to net profit of INR Y mn in FY 2012

• It reported total Income of INR XX mn in FY 2013, registering

an increase of X per cent over FY 2012

• It earned an operating margin of X.X per cent in FY 2013 an

increase of X.X percentage points over FY 2012

• The company reported debt to equity ratio of X.XX in FY 2013,

an increase of X.X per cent over FY 2012

Net Profit/Loss Total Income

0

0

-20

-10

-30

4

2

6

2013 2012

INR mn INR mn

b1 a1 d1

-c2

-b2

-d2

-a2

c1%

2011 2010



18

Business Highlights

Description News

Overview • The company’s manufacturing facility in City 1 is equipped with the latest tools and

equipments

Expansion Plans • They are also into contract manufacturing-for various pacemakers for OEMs

Investors • Company B is a strategic investor in the company

Pacemaker • Entered into an exclusive technology transfer agreement with Company C in 2009

• Partnered with Company D for pacemaker leads in 2009

Awards and Recognitions • An ISO 9001-2008 and ISO 13485-2003 certified advance medical device company



19

T O

W S

Private: Domestic Company – Company 2 – SWOT Analysis (5/5)


20

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