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Medical Device Market Size – India
2.0 2.5
2.8 3.2 3.2 3.4
3.9
4.5
5.2
6.1
7.0
8.2
0
1
2
3
4
5
6
7
8
9
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
USD
bn
Indian Medical Device Market
CAGR - 16%
Figure : Indian Medical Device Industry Market Size
• The Indian medical device market has grown from USD 2.02
bn (INR 13,130 Crores) in 2009 to USD 3.9 bn (INR 25,259 Crores) in 2015 at CAGR of 15.8%. This accounts for approximately 1.7% of the global medical device market in 2015
• The Indian Medical Device market contributes to 4% of the Indian healthcare market which is pegged at USD 96.7 bn (INR 6.29 Lakh Crores), in 2015
• The industry estimate suggests that the Indian medical
device market will grow to USD 8.16 bn (INR 53,053
crore) in 2020 at CAGR of 16%
• India is one of the top 20 global medical device markets and the 4th largest medical device market in Asia.
Medical Device Segments – India Diagnostic imaging is the largest segment within Indian medical device market in 2015. It constitutes USD 1.18 bn (INR 7,650 crores)3 in 2015 and will grow to USD 2.47 bn (INR 15,561 Crores) in 2020.
• Others and IV diagnostics comprise largely of electrical and
electronic devices. The others category (patient monitors, ECG machine, Defib, etc) is estimated at USD 0.94 Bn (INR 5,922 Crores) in 2015 and will grow to USD 1.98 Bn (12,880 Crores) in 2020. Similarly, the IV diagnostics market constituted of USD 0.39 bn (INR 2,550 crores) in 2015 and will reach USD 0.82 bn (INR 5,356 Crores) in 2020
• Similarly, Orthopedics & Prosthetics and Consumables will grow
from a cumulative USD 0.90 bn (INR 5,850 crores) in 2015 to USD 1.88 bn (INR 12,220 crores) in 2020.
• Dental products and Patient Aids will grow from a cumulative USD 0.47 bn (INR 2,961 Crores) in 2015 to USD 1.1 bn (INR6,930Crores) in 2020.
1.18
2.47 0.63
1.31
0.39
0.82
0.35
0.75
0.27
0.57
0.12
0.26
0.94
1.98
0
2
4
6
8
10
2015 2020
USD
bn
Segment Wise Market Share of Medical Devices
Others (like PatientMonitor, ECG,Oxygenators etc.)
Dental Products
Orthos and Prosthetics
Patient Aids
IV Diagnostics
Consumables
Diagnostic Imaging
3.89
8.16
Figure : Segment-wise Market Share
Key Segment Sub-segment % of Import
dependency
Share of the overall
Medical Device
market
Overall attractiveness for Indian
Manufacturers to invest in this
segment
Consumables Cardiac Catheter, Other needle, Syringe, Lab reagent,
Suture, Strips & cartridge, Dialysers and Filters, cannula
35% 16% High
Dental Product Dental Implant, Artificial teeth, Dental instruments 60% 3% Medium
Diagnostic Imaging X-Ray tubes, USG Probe, Radiation beam delivery
system, Radiation generator unit, CT Scan, MRI, PET
Scan, ALPHA, BTA/GMA Radiation for other use in
radiography equipment
52% 30% Very High
IV Diagnostics Lab reagent & accessories 67% 10% High
Orthopaedic &
Prosthetics
Artificial joints & joint implants 62% 8% High
Others Artificial dialysis apparatus & haemodialyser,
defibrillator, Lithotripsy equipment ,ECHO,EEG, ECG,
anesthesia equipments, Laparoscope, endoscope
83% 24% Very High
Patient Aids Pacemaker, Hearing aid, Cochlear implant, Stents 50% 9% Medium
High Potential Segments in India
Table : High Potential Segments in India
Foreign Direct Investment and Other Investment in Indian Medical Device Sector
Foreign Direct Investment in the Last 5 years
FDI in medical devices has grown by 25.4 per cent
from USD 131.4 mn in FY12 to USD 164.7 mn in FY16.
In January 2015, Government of India modified the
FDI regulations allowing 100 per cent FDI under
automatic route in Greenfield and brownfield
projects in medical device sector.
USA, Europe and Japan are the key source countries
for FDI in medical devices.
The equipment and instruments, consumables and
implants segments have attracted the most FDI.
131.4
83.0
173.5
154.5 164.7
0
20
40
60
80
100
120
140
160
180
200
2011-12 2012-13 2013-14 2014-15 2015-16
USD
Million
FDI Investments
Figure : FDI Investments in the Indian Medical Device Sector
Source: Department Of Industrial Policy &
Promotion, GoI,
Merger and Acquisition, Venture Capital and Private Equity Investment in Medical Device • The Indian medical device sector has received an investment of USD 505 mn from 27 M&A transactions and around
43 venture capital/ private equity investment in last five years.
• The Equipment and Instruments and Consumables segments attracted the majority of M&A and PE investments.
Year Merger and Acquisition
(USD mn)
PE/ VC/ Angel Funding
(USD mn)
2010 No. of deals 7 3
Value 90.6 14.7
2011 No. of deals 5 2
Value 0.9 4.5
2012 No. of deals 8 14
Value 26.6 162.2
2013 No. of deals 4 13
Value 40.2 125.0
2014 No. of deals 2 9
Value 4.9 27.9
2015 No. of deals 1 2
Value NA 7.5
Total No. of deals 27 43
Value 163.2 341.8 Table : Deals in medical device sector in India Source: VCCEdge, 2016
Bright spots in medical device policy landscape
Medical Devices reform task force- 2014/15
Inverted Duty Correction for spares/components -2016
Medical Devices Rules, 2017
Preferential Procurement of domestically manufactured good, GFR-2017
Medical Devices R & D priority & market access think tank- 2017
Code for Marketing Practices- under final stages of formulation
Medical Devices Promotion Council- Advance stages of planning
Promotion of organized infrastructure support- AMTZ 2016-17 onwards
AMTZ - Manufacturing Units
I n d i a ’ s 1 s t I n t e g r a t e d M e d i c a l D e v i c e s M a n u f a c t u r i n g P a r k
Size 10,000 sft 20,000 sft 40,000 sft
Booking fee (refundable) USD/$
100 200 400
Development fee (USD/$ once for 33 years)
37, 500
75, 000 150, 000
1 Cent/SFT/month
Monthly fees USD/$
600 1200 2400 0.45 Cents/SFT/Month
Visakhapatnam- the port city
I n d i a ’ s 1 s t I n t e g r a t e d M e d i c a l D e v i c e s M a n u f a c t u r i n g P a r k
Un-Common Scientific Facilities
AMTZ Centre for Moulding
Component/PCB Testing &
Manufacturing
Centre for 3D Printing
Gamma Irradiation
Facility
Biomaterial Testing Lab
Centre for MedTech
Innovation & Rapid
Prototyping
Centre for Sterilization &
Toxicity
EMI/EMC
Centre for Radiation
Testing
I n d i a ’ s 1 s t I n t e g r a t e d M e d i c a l D e v i c e s M a n u f a c t u r i n g P a r k
Business Promotion Facilities
AMTZ Import-Export
Promotion
Regulatory Office
Exhibition Halls
Convention Centres
Banks
Auditoriums
Technical, HR & Financial
Support
Warehouse
Transport & Support Services
I n d i a ’ s 1 s t I n t e g r a t e d M e d i c a l D e v i c e s M a n u f a c t u r i n g P a r k
Benefits for Manufacturers Lower Cost for
Testing Services Infra
Development
Lower CapEx for
Manufacturers
Regulators & Export
Facilitation
Promotional activities
through Expo & Convention
Centre
Finance & Technology
Transfer Services
20% space saving due to
centralized Warehousing
Preferential Market Access
I n d i a ’ s 1 s t I n t e g r a t e d M e d i c a l D e v i c e s M a n u f a c t u r i n g P a r k
The Grand Beginning…
I n d i a ’ s 1 s t I n t e g r a t e d M e d i c a l D e v i c e s M a n u f a c t u r i n g P a r k
Operational Efficiencies
A 2.5 Times value improved built- up
facility
Affordable scientific labs at subsidized
testing rates
Inverted duty structure corrected
Ease of operations
Preferential lending rates
Reduced transportation cost
Warehousing with cold chain on usage
basis
Connected to markets & medical convention centre
Local availability of raw material & port
connectivity
I n d i a ’ s 1 s t I n t e g r a t e d M e d i c a l D e v i c e s M a n u f a c t u r i n g P a r k
Incentives & Positives
Quality Certification
50% subsidy on the expenses incurred for quality certification limited to Rs 4 Lakh / 6,400 USD (Conformity European (CE),
100% subsidy for IC-MED certification by Quality Council of India, supported by AMTZ
Green Production Measures
•25% subsidy on cleaner / greener production measures limited to Rs 10 Lakh / 16,000 USD
Skill Up-gradation & Training
•50% reimbursement of the cost incurred subject to a maximum of Rs.10,000 (USD150) per employee to the companies for providing skill gap trainings to the engineers of AP domicile
Micro, Small and Medium Scale Enterprises
20% Investment Subsidy limited to Rs 20 lakh / 32,000 USD for MSME and additional 5% investment subsidy for Women Entrepreneurs
Preferential Market Access
The policy of GoI on preferential market access for domestically manufactured electronics products/ other products
I n d i a ’ s 1 s t I n t e g r a t e d M e d i c a l D e v i c e s M a n u f a c t u r i n g P a r k
Tax benefit & depreciation
Eligible for 15 per cent of higher additional depreciation making it 65% and 15 per cent of investment allowance on the cost of plant and machinery
Power Subsidy
50% to micro, 40% to small & 25% to medium & 10% to large-scale industry limited to Rs 50 lakh / 80,000 USD for a period of 5 years from the date of commencement of commercial operations.
Exemption of Electricity Duty for new electronic hardware units, after coming into commercial operations entitled for 100% exemption on Electricity duty for a period of 5 years
Patent Filing Cost
The cost of filing patents will be reimbursed to the companies having their headquarters in Andhra Pradesh, subject to a limit of Rs 5 Lakh / 8,000 USD per domestic patent awarded and Rs 10 Lakh / 16,000 USD per international patent awarded
Incentives & Positives
I n d i a ’ s 1 s t I n t e g r a t e d M e d i c a l D e v i c e s M a n u f a c t u r i n g P a r k
AVISHCAR Advance Identification Of Scientific Technology & Commissioning Roadmap
Advance Purchase/use agreement for high value medical technology
products with exclusivity
Ministry of Electronics
AMTZ DME
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