Healthcare sector-

India
5th largest employer, 47 lakh + direct employees
Expected to rank among top 3 markets by 2020 interms of
incremental growth
Overview
6 segments (industries)
Hospitals: (government & private)
Pharmaceutical industries
Diagnostics
Medical Equipment and Supplies
Medical Insurance
Telemedicine
Growth rate: 16.5% CAGR during 2008-2020
Industry size:
estimated US$ 160 billion current, projected US$ 280 billion by
2020
Per capita healthcare expenditure: CAGR 5% 2008-15
Porters five forces analysis
Threat of substitutes (positive impact)
Patients may opt for inexpensive public hospitals or e-health.
Competitive rivalry (neutral impact)
Despite increased private players, no. of hospitals lower than
requirement, hence not much competition
Bargaining power of buyers (neutral impact)
Low, however increased choices have enabled miniscule increase
Bargaining power of suppliers (negative impact)
Owing to less no. of quality suppliers, this force if high
Threat of new entrant (negative impact)
Big threat to new entrants due to high set up costs
Growth Drivers
Growing Rising incomes and affordability
Growing elderly population, changing disease patterns
Demand Increased awareness of wellness, preventive care and diagnosis

Reduction in customs duty and other taxes on life-saving equipment

Policy Support NRHM allocated US$ 10 billion for healthcare facilities
National Health Insurance Mission to cover entire population

Expanding research and development and distribution facilities in India

Focus Providing support to global projects from India
Use of modern technology

Merger and Rising FDI and private sector investments

Lucrative MandA opportunities
Acquisitions Foreign players setting R & D centres and hospitals
Current trends
50% in patients are Government has relaxed
lifestyle diseases cases the taxes on these
hospitals for the first five
years

Shift from
Expansion to
communicable
tier-II and tier-
to lifestyle
III cities
diseases

Technological Emergence of
initiatives telemedicine

AIIMS to convert all its Extending low-cost

payment transaction consultation and
cashless,it has diagnosis facilities to
associated with the remotest of areas.
MobiKwik, in January
2017. 20% CAGR, $32 mil by
2020
Current trends
More than essential Mobile health industry
requirements, in India is expected to
healthcare providers are reach US$ 0.6 billion by
making offerings of 2017
luxurious services Cycle tel Humsafar, SMS
service

Mobile-based
Luxury health
offering
delivery

Increasing
Management penetration
contracts of health
insurance
Many healthcare players CAGR of 15.36 per
such as Fortis and cent, during FY08-16,
Manipal Group are gross healthcare
entering management insurance premium in
contracts 2016 stood at US$ 2.8
billion
Major Players
Sun Pharmaceutical (1,16,078), Cadila Healthcare (51,530), Cipla (45,606),
Pharma companies Aurobindo Pharma (43,112), Lupin Ltd (44,585), Dr. Reddy's Laboratories (33,833)
Torrent Pharmaceuticals (20,495), Divis Laboratories (18,634), Glenmark
[market capitalization (Rs. Crores) wise] Pharmaceuticals (17,418)

Johnson and Johnson(Multi-speciality) , General Electric Co. (Multi-speciality),

Medical Equipment Medtronic Co. (Cardiac medical equipment), Siemens (medical devices in
Angiography, C-arms, Imaging for Radiation Therapy, MRI, Mammography,
Mfg Companies Molecular Imaging, Radiography, Ultrasound), Baxter International Inc (Renal
medical Equipment), Koninklijke Philips NV (Philips Home care)

Apollo Hospitals, Aster Medcity, Care Hospitals, Fortis healthcare, Narayana

Medical Tourism Health, P.D. Hinduja National Hospital and medical research centre.

Government AIIMS Delhi, CMC Vellore, PGIMER Chandigarh, Tata Memorial Hospital Mumbai,
King Edward Memorial hospital, Mumbai.
hospitals
Recent developments
Prices of life-saving coronary stents have been capped at Rs
30,000, which is a cost drop of about 85% from what is
commercially available.
Entry of Ecommerce players like Medikart offering medical
equipment and pharmaceuticals at lower rates.
Prices of knee implant slashed by upto 69% capping the prices
at Rs. 76600 + GST
Introduction of GST to lower the prices of medical
commodities accelerating sectorial growth