Upload
netscribes-inc
View
212
Download
0
Embed Size (px)
DESCRIPTION
For the complete report, get in touch with us at : [email protected] The new report, ‘Snacks Market in India’, states that the Indian snacks market is experiencing rising demand due to various driving factors which in turn is providing immense opportunities to manufacturers to grow and operate in the market lucratively. The Indian food and beverage sector is huge and highly competitive in nature. The industry comprises of several sub-sectors such as fruits & vegetables, meat & poultry, dairy, marine products, grains and consumer foods. Snack is one of the major segments of the packaged food division, which comes under the broad category consumer foods. Though the snacks market in India is dominated by the unorganized sector, the organized sector has shown remarkable growth in terms of market share in the last few years.
Citation preview
Pharmacy Retail Market IndiaPharmacy Retail Market ‐ India
May 2013
Executive Summary
Market
• The Indian pharmacy retail market is valued at approximately INR X1 bn and is expected to reach INR X5 bn by 20‐‐
• The market is distinctly fragmented into organized and unorganized players with a major share of the market being dominated by the unorganized sector
Drivers & Challenges
Drivers Growth in Pharmaceuticals Sector Rising Healthcare Expenditure Changing Disease Profile Growth in OTC Segment
Challenges Capital Intensive Business Fragmented Industry Counterfeit Drugs
Challenges Growth in OTC Segment Consumer Attitude Attractive Margins
Loyalty SchemesValue Added Services
Organized Retailers Starting Pharmacy Chains
Trends
Value Added ServicesHealth Insurance Plans Made Available in Pharmacy Tele Consultation Service Entry of Government in Pharmacy R t ili
Entry of Private LabelsRural Expansion Tracking of Counterfeit Drug
Competitive Landscape
Retailing
Key Players
Company A Company B Company C
2
Landscape Company A Company B Company C
Company D Company E Company F
PHARMACY RETAIL MARKET IN INDIA 2013.PPT
•Macro Economic Indicators
•Introduction•Introduction
•Market Overview
•Government Regulationsg
•Drivers & Challenges
•Industry Association
•Key Trends
•Technology Adoption
•Competitive Landscape
•Strategic Insights
3PHARMACY RETAIL MARKET IN INDIA 2013.PPT
•Appendix
SAMPLE Economic Indicators (1/3)
INR tn
15 13.9514.12
GDP at Factor Cost: Quarterly
13.4012.62
11.66
13.0612.2911.5210.70
13.1612.39
11.47
10.58
14
13
12
11
13.24
12.13
Q2Q1
10
Q4Q32012‐132011‐122010‐112009‐10
Inflation Rate: Monthlyy
0.910.93
0 8
1.0
%
0.460.460.47
0.2
0.4
0.6
0.8
4PHARMACY RETAIL MARKET IN INDIA 2013.PPT
0.0
Dec 2012 ‐ Jan 2013Nov 2012 ‐ Dec 2012Oct 2012 ‐ Nov 2012Sep 2012 ‐ Oct 2012Aug 2012 ‐ Sep 2012
Pharmacy retail serves direct consumer requirements of drugs for consumption purpose
The concept of direct selling of drugs is known as Pharmacy Retailing as well as Community Pharmacy
• Issue of bills that ensures the authenticity of
Pharmacy Chain Retailing Traditional Medical Retailing
• No practice of providing bills that affects level of• Issue of bills that ensures the authenticity of medicines offered
Bill Issue • No practice of providing bills that affects level of assurance of medicine offered at stores
• Traditional medical retailing hardly gives• Employment of licensed pharmacists and retail chain is generally associated with trained doctors
• Can provide reliable advice to customers as well as benefit of doctor‐endorsed substitution
Pharmacists Employment
• Traditional medical retailing hardly gives importance to employment of licensed pharmacists
• Lack of association with doctors often results in self substitution in the absence of prescribed medicine
Working Capital
• Has enough working capital to keep enough stock of medicineAl ff 24 h i
medicine
• Limited finance restricts the stock of medicine• IT infrastructure investment is a far fetched
5PHARMACY RETAIL MARKET IN INDIA 2013.PPT
g p• Also offers 24 hrs service• Can invest in IT
affair
Unorganized segment of pharmaceutical market dominates a large volume of the pharmaceutical retail market
• Indian pharmacy retail stands out as a lucrative market that still remains under penetrated, projecting strong potentialTh I di h k i k d 13th i f
Market Overview
2,000X% X6
INR bn
Market Size and Growth
• The Indian pharmacy market is ranked 13th in terms of value and 4th in terms of volume
• The pharmaceutical sector on the whole contributes a share of 2‐3% to India’s GDP
• The market is distinctly fragmented into organized and d l
500
1,000
1,500 X5X4
X3X2X1
unorganized players There are approximately P to Q stores across the country There are N key players operating in the organized segment of pharmacy retail
• The unorganized market is huge and is approximately l d t INR it i % f th t t l k t
0
20‐‐20‐‐20‐‐20‐‐20‐‐20‐‐
Market Segmentationvalued at INR xUnounits occupying a% of the total market size while organized market is valued at approximately INR XO units capturing close to b% of market share The unorganized pharmacy retail market is growing at a CAGR of m% while organized pharmacy retail is expected to grow at a CAGR of n% 80%
100%
%
O6%O5%O4%O3%O2%O1%
Organized Unorganized
There will emerge a significant change in the market segmentation by 20‐‐ when organized retail will capture approximately p% market from the current q% share
• In India, pharmacies are the dominant distribution channel generating approximately s% of the overall pharmaceutical sales 0%
20%
40%
60%
UO6%UO5%UO4%UO3%UO2%UO1%
6PHARMACY RETAIL MARKET IN INDIA 2013.PPT
pharmaceutical sales 0%
20‐‐20‐‐20‐‐20‐‐20‐‐20‐‐
Government Role: Summary
Licence Procurement
Role of
Government
Foreign Direct I
Ownership RestrictionsInvestment
Ownership Restrictions
7PHARMACY RETAIL MARKET IN INDIA 2013.PPT
Drivers & Challenges
Drivers
Growth in Pharmaceuticals Sector Challenges
Rising Healthcare Expenditure
Changing Disease Profile
Capital Intensive Business
Fragmented Industry
Growth in OTC Segment
Consumer Attitude
Counterfeit Drugs
Attractive Margins
8PHARMACY RETAIL MARKET IN INDIA 2013.PPT
SAMPLETechnology Adoption: Summary
SAMPLE Customer Relationship
ManagementManagement
TechnologyT dTrends
Supply Chain M
Enterprise Resource l iManagement Planning
9PHARMACY RETAIL MARKET IN INDIA 2013.PPT
Competitive Benchmarking (1/3)
Key Ratios of Major 3 Companies – Operational Basis (FY 20‐‐) (1/3)
7.292 8410
% Net MarginOperating Margin
‐2.73 ‐2.09
2.84
‐30
‐20
‐10
0
10
‐32.57 ‐32.92‐40
30
Company CCompany BCompany A
• Emami Frank Ross Ltd. recorded operating margin of 7.29%, higher than both MedPlus Health Services Pvt. Ltd. and Religare Wellness Ltd. which recorded operating margin ‐2.73% and ‐32.57% respectively
• Only Emami Frank Ross Ltd. recorded positive net margin of 2.84% while both MedPlus Health Services Pvt. Ltd. and Religare Wellness Ltd. recorded negative net margin, of ‐2.09% and ‐32.92% respectively
10PHARMACY RETAIL MARKET IN INDIA 2013.PPT
Public: Domestic Company – Player A (1/4)
Offices and Centres – India Company Information
Corporate Address xx
Tel No. xx
Fax No. xx
Website xx
Year of Incorporation xx
Ti k S b lTicker Symbol xx
Stock Exchange xx
Products and Services
Mumbai
Key People
Name Designation
Category Products/Services
Domestic Appliances xx
Head Office
Lighting Products xx
11PHARMACY RETAIL MARKET IN INDIA 2013.PPT
SAMPLE i i l S h K i
Public: Domestic Company – Player A (2/4)
Financial Snapshot Key Ratios
Net Profit / LossTotal Income
27,565.740,000 1,500
INR unitsINR units
31,123.322,379.4
Particulars y‐o‐y change (2012‐11)
2012 2011 2010 2009
Profitability RatiosOperating Margin ‐1.37 7.36% 8.73% 10.20% 10.15%
0
20,000
0
500
1,000
20‐‐20‐‐20‐‐20‐‐
17,755.6 Net Margin ‐1.43 3.79% 5.22% 5.23% 5.02%
Profit Before Tax Margin ‐2.28 5.65% 7.93% 8.94% 7.87%
Return on Equity ‐6.69 16.84% 23.53% 23.69% 36.38%
Return on Capital Employed ‐5.65 30.15% 35.80% 41.23% 55.25%
Return on Working Capital ‐6.19 99.01% 105.20% 56.56% 95.34%
Return on Assets ‐1.89 11.74% 13.63% 16.90% 17.31%
Financial Summary
• The company earned a net profit of INR 1,178.8 mn in FY 2012, as compared to net profit of INR 1,437.9 mn in FY 2011
• The company reported total income of INR 31,123.3 mn in FY 2012 registering an increase of 12 9 per cent over FY 2011
Return on Fixed Assets ‐35.06 122.51% 157.57% 226.85% 185.65%
Cost RatiosOperating costs (% of Sales) 1.39 92.61% 91.22% 89.76% 89.81%
Administration costs (% of Sales)
1.22 13.04% 11.82% 12.36% 12.06%
Interest costs (% of Sales) 0.61 1.92% 1.32% 1.66% 2.33%2012, registering an increase of 12.9 per cent over FY 2011
• The company earned an operating margin of 7.36 per cent in FY 2012 a decrease of 1.37 percentage points over FY 2011
• The company reported debt to equity ratio of 0.30 in FY 2012, an increase of 36.04 per cent over FY 2011
(% )
Liquidity RatiosCurrent Ratio ‐1.25% 1.19 1.21 1.51 1.26
Cash Ratio 5.17% 0.08 0.08 0.12 0.12
Leverage RatiosDebt to Equity Ratio 36.04% 0.30 0.22 0.31 0.88
D b C i l R i
Indicators Value (21/01/2013)Market Capitalization (INR) xxTotal Enterprise Value (INR) xxEPS (INR)
Key Financial Performance Indicators Debt to Capital Ratio 27.74% 0.23 0.18 0.23 0.47
Interest Coverage Ratio ‐42.39% 3.84 6.67 6.16 4.37
Efficiency RatiosFixed Asset Turnover ‐7.66% 16.57 17.95 22.15 18.22
Asset Turnover 2.28% 1.59 1.55 1.65 1.70
Current Asset Turnover 5.04% 2.18 2.07 1.86 1.96
12
EPS (INR) xxPE Ratio (Absolute)‐09/01/2013 xx
Improved Decline
Working Capital Turnover 11.77% 13.39 11.98 5.52 9.36
Capital Employed Turnover ‐7.31% 3.41 3.68 3.45 3.84
PHARMACY RETAIL MARKET IN INDIA 2013.PPT
SAMPLE Public: Domestic Company – Player A – SWOT Analysis (4/4)
• xx• xx
S WS W
TO• xx
• xx
13PHARMACY RETAIL MARKET IN INDIA 2013.PPT
Thank you for the attentionThe Pharmacy Retail Market – India report is part of Research on India’s Healthcare Series.For more detailed information or customized research requirements please contact:
Phone: +91 33 4027 6214/6215
Follow us on:
Phone: +91 33 4027 6214/6215E‐Mail: [email protected]
About NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & g g f g p y p p fbusiness 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 is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.
Disclaimer: This report is published for general information only Although high standards have been used in the preparation “Netscribes” is
14PHARMACY RETAIL MARKET IN INDIA 2013.PPT
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.