Market Research Report :Otc drug market in india 2014 - Sample

Insert Cover Image using Slide Master View

Do not distort

OTC Drug Market - India

July 2014

http://www.netscribes.com/

2

Drivers: Rising consumer confidence in OTC

products

Switch of prescription drugs to OTC widens growth opportunity of OTC

Increasing focus on brand building

Booming retail growth

Changing demographics

Lower price control

Challenges: Low penetration in rural areas

Preference of home remedies

Competitive market

Time consuming clinical trial procedures

Competition

Drivers and Challenges

Market

Executive Summary

India currently ranks eleventh in the global Over-the-counter (OTC) drug market

OTC drug market in India is valued at INR XX unit in 20--

The market is expected to grow at a CAGR of m% from 20-- to 20--

Public Players Private Players

Player 1; Player 2; Player 3; Player 4; Player 5; Player 6; Player 7; Player 8; Player 9; Player 10; Player11

Payer 1; player 2; Player 3; Player 4

OTC DRUG MARKET IN INDIA 2014.PPT


3

•Macroeconomic Indicators

•Introduction

•Market Overview

•Market Value Chain

•Drivers & Challenges

•Government Initiatives

•Regulations

•Competitive Landscape

•Recent Developments

•Strategic Recommendations

•Appendix



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

Global OTC drug market is expected to witness a huge growth over the coming years

• OTC pharmaceutical is one of the largest segments of

the overall pharma market

• The market has a size of INR A1 unit in 20-- and is

expected to grow at a CAGR of m % from 20-- to 20--

• Cough and cold medicines are the leading contributor in

the global market, comprising almost p% of the total

market

• Major growth is expected to come from the Asia-Pacific

region, which is the largest contributor to global sales

and accounts for q% of the global market

• In 20--,pharmacy retail chains formed the major share of

the distribution channel in the global OTC pharma

market, accounting for r% of the total value

• A large number of drugs are shifting from prescription

to OTC, thus drives the market extensively

Global Market – Overview Market Size and Growth

OTC Drug Distribution – 20--

A%

C%

B%

C

B

A

0

2

4

6

8

INR XX

M%

20--e

A6

20--e

A5

20--e

A4

20--e

A3

20--

A2

20--

A1

Note: Revenue fluctuations caused due to the changes in exchange rate



6

Increasing amount of consumer confidence in OTC products is driving the Indian market

• Over-the-counter drug market in India has a huge

potential

• Indian OTC market had a size of INR X bn in 20-- and

is expected to grow at a CAGR of y% from 20-- to 20--

• India currently ranks eleventh in the global OTC

market and it is estimated that it will reach ninth

position within next five years

• Sales channels for OTC drugs are extensive, as they

do not require a drug license and can be sold by non

chemists as well

• Vitamins and minerals segments are the most

popular segments, with a share of around Y%

Indian Market – Overview Market Size and Growth

Source:

OTC Drug Distribution – 20--

0

50

100

150

200

INR YY

y%

20--e

X6

20--e

X5

20--e

X4

20--e

X3

20--

X2

20--

X1

D4% D3%

D2%

D1%

D4

D3

D2

D1



7

Drivers & Challenges – Summary

Drivers

Rising consumer confidence in OTC products

Switch of prescription drugs to OTC widens growth opportunity of OTC

Booming retail growth

Increasing focus on brand building

Changing demographics

Low price control

Challenges

Low penetration in rural areas

Preference of home remedies

Competitive market

Time consuming clinical trial procedures



8

Government Initiatives – Summary

Government Initiatives

Reduction in drug prices

Other Initiatives Changes in tax structure



9

SAMPLE Porter’s Five Forces Analysis

Competitive Rivalry • Texttext texttext texttext texttext

texttext texttext texttext • Texttext texttext texttext texttext

texttext texttext texttext

Bargaining Power of Buyers • Texttext texttext texttext

texttext texttext texttext texttext

• Texttext texttext texttext texttext texttext texttext texttext

Threat of New Entrants • Texttext texttext texttext texttext



Impact Low to

Medium

Impact Medium to

High

Impact High

Bargaining Power of Suppliers • Texttext texttext texttext texttext




Impact Low to

Medium

Threat of Substitutes • Texttext texttext texttext texttext



Impact Low



10

SAMPLE Competitive Benchmarking (1/5)

Public Trading Comparables (FY 2013) – Top 3 Companies

Company A Company B Company C

Market Capitalization (INR mn) Value Value

Value

Share Price (INR) Value Value Value

EV/EBITDA (INR mn) Value Value Value

EV/Revenue (INR mn) Value Value Value

PE Ratio Value Value Value

Note: Top 3 Public companies based on the Market Capitalization, Share Price and PE ratio is as of 18/05/2014



11

SAMPLE Key Ratios of Top 3 Companies – Operational Basis (FY 20--) (1/3)

Competitive Benchmarking (1/4)

-30

-20

-10

0

10

%

Player C

q3

Player B

q2 p2

Player A

q1 p1

Net Margin Operating Margin

• X

• X



12

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

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address Company A Address Line 1 Address Line 2

Tel No. +91 xx xxxxxxxx

Fax No. +91 xx xxxxxxxx

Website www.a.com

Year of Incorporation 19--

Ticker Symbol xxx

Stock Exchange NNN

Name Designation

Person A Chairman, M.D.

Person B GM of Finance

Person c President- OTC Division

Person D Senior V.P. Sales & Marketing

X

Head Office

Category Products/Services

Healthcare Management

Nutritional drinks, pharmaceuticals, OTC

F&B Drinks and cola



http://www.a.com/

13

Key Ratios

Financial Summary

• The company earned a net profit of INR q units in FY 20--, as compared to net profit of INR r units in FY 20--

• The company reported total income of INR p units in FY 20--, registering an increase of t per cent over FY 20--

• The company earned an operating margin of f per cent in FY 20--, a decrease of g percentage points over FY 20--

• The company reported debt to equity ratio of h in FY 20--, an increase of z per cent over FY 20--

Key Financial Performance Indicators

Net Profit / Loss

Total Income

-20

0

20

INR units

-40

INR units

2.0

1.5

1.0

0.5

0.0

20--

q

p

20--

r

o

20--

s

n

20--

t

m

Indicators Value (dd/mm/20--)

Market Capitalization (INR)

Total Enterprise Value (INR)

Particulars y-o-y change

(20-- - --) 20-- 20-- 20-- 20--

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 Snapshot




14

Key Business Segments Key Geographic Segments

Business Highlights

20--

z y

x

20--

z y

x

20--

z y

x

20--

z y

x

z y x

0

20

40

60

80

100

20--

100% A

Company A has been solely operating in India


Description News

Overview • Company A is an integrated research based company that produces a wide range of generic medicines

• Serves customers in over 100 countries with manufacturing facilities in several countries

OTC • Has been operating in the OTC industry for the past 12 years

Key Initiatives • Is making consistent effort for continual improvement in rural areas with respect to accessibility of

medicines



15

Product Category OTC Products

Pain Management Product A, Product B

Congestion Management

Product C, Product D

Healthcare Management

Product E, Product F

OTC Products




16

Thank you for the attention

About Netscribes, Inc. Netscribes, Inc. is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes, Inc. is a one-stop shop designed to fulfil clients’ profitability and growth objectives.

OTC Drug Market – India report is part of Netscribes’ Healthcare Series. For any queries or customized research requirements, contact us at:

Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction.

Phone: +91 22 4098 7600 E-Mail: [email protected]




mailto:[email protected]

Documents

Market Research Report :Otc drug market in india 2014 - Sample