Presentation on Diagnostics Sector

8/6/2019 Presentation on Diagnostics Sector

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Vijya Research & Advisory



Broad Areas Covered

y Sector

y Market

y Growth Drivers

y Key Playersy Government Role, Initiatives and Policies

y Investments

y Strengths and Weakness

y Growth Opportunities




The Report contents

y Introductiony Market Sizey Market Structurey

Growth Driversy Opportunitiesy Challengesy Regulatory Environmenty Investments

y Swot Analysisy PESTLE Analysisy Road Ahead




Market Size

y There are about 100,000 laboratories in India

y Average all India penetration of institutional diagnosticservices:

4.6 % in rural areas 6 % in urban areas

y Average all India penetration of institutional diagnosticservices:

1.75 % in rural areas 2.6 % in urban areas




Market Structure

y The Diagnostic services sector is divided into four majorsegments which are Biochemistry, Hematology,Immunology and Microbiology .

y T

he Diagnostic market in India, is largely dominated by organized players.

y Organized players constitute approximately 10 % of thediagnostic market.




Growth Drivers

The major growth drivers in the diagnostic sector are:

� Rising population

� Expanding middle class income

� Rise of tier II and tier III cities� Rise of diseases

� Research and Development

� Global approach of domestic players¶

� Entry of new players




Challenges

Diagnostic sector has to face some challenges such as:

y High capital costs

y Cost of medical equipments

y Availability of human resourcesy Competition from standalone players




Government Initiatives

Major government initiatives in diagnostic sector include :

y Building rural healthcare infrastructure

y Entering into Public-Private Partnerships (PPP)

y Bringing about Medical Devices Regulation Billy Central government is establishing India¶s first specialized

devices centre in Gujarat to promote indigenous R & Defforts: µNational Centre for Medical Devices




Taxes

y In Union Budget 2011-12, the excise duty on medicalequipment has been increased from four to five per cent.

y Reduction in import duty on equipment from 25% to 5%.

y

Customs duty reduced to 8% from 16% for medical surgical, veterinary furniture.

y Customs duty on 24 medical equipments such as X-ray,goniometer, teletherapy stimular machines reduced to 5%.

y Depreciation limit on equipment rose from 25% to 40% toencourage imports.




Key Findings of the Report

y The diagnostic sector is projected to contribute Rs. 11,250 crore (USD2.5 billion) by 2012.

y Nearly 5% of India¶s GDP is spent on healthcare.

y almost 60-70 per cent of medical treatments are based on laboratory diagnostic tests

y There are about 100,000 diagnostic laboratories in India conductingnearly 2,000 to 3,000 tests per day for larger laboratories.

y There are approximately 100,000 diagnostic laboratories serving nearly 1.21 billion Indian people. This implies 8 laboratories per 100,000people.


The revenues from diagnostic segments areprojected to grow at a CAGR of around 20 percent over the next three year.



Key Findings of the Report (Contd.)

y Mergers & acquisitions (M&A) are likely to pick up pace indiagnostic sector. There may be consolidation amonglarger players through mergers as well.

y The Indian diagnostics giants are expanding their presencenot just in India, but also in overseas territories like theMiddle East and the U.S.

y Upper cap for foreign direct investment in diagnostic sectorand approved under automatic route.

y The inflow of Foreign Direct Investment in Indian hospitaland diagnostic sector was Rs. 4,373.45 crore from April2000 to February 2011.





y To purchase the report or to know more about it, pleasecontact:

Ms. Piyush Jain Vijya Research & Advisory

Email: piyush. [email protected]

http://www .kapsole.com/indian-diagnostic-industry-and-

market-report-2011-12/

Presentation on Diagnostics Sector

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