While investors in India are not aware of this business, globally B2B services to dentistry is a big business. The main segments of this market are: clinic capex; consumables; education, training and exhibitions. The size of this market is around ~USD50B at global level. The size of the US market is around a third of this, around USD16B. The size of the retail market of dentistry in the US is USD160B. This makes B2B distribution around 10% of the retail market. In India, we find B2B distribution is around 15-20% of dental revenues (less for more high earning dentists). This makes the size of the dental distribution market between Rs 20-25B. The US market has concentrated; the two top companies have around 30% market share. This suggests scope for emergence of a scale player in the fragmented Indian market.

1. www.indiabusinessreports.com
Dental B2B Business – Info Review
Product Distribution and Services
Sector: Healthcare
Jan-2017
*IBR’s Info Reviews are not research reports, but a handy compilation of relevant information

2. Market size estimates
• Global B2B dental equipment and consumables market is
estimated to at ~USD50B by BCC Research.
• This implies US market size of around USD 16B. Size of the
US dental services market (retail value), is around USD 160B.
This makes the B2B products and services market just under
10% of the retail value (assuming 5-10% of the USD16B is
capital equipment).
• In India, the ratio of consumables to total retail dental
income is between 15-20% (higher than global standards,
due to lower pricing of dental procedures)
• Indian market for dental supplies is estimated at around Rs
20-25B. Almost all of this – equipment, consumables – is
imported
• US B2B market is more concentrated than ROW. Top 2
companies have ~30% of the market. Indicates scope for
emergence of a B2B scale player in India as well.
www.indiabusinessreports.com 2Dental Distribution Business
Segments

3. Leading Global Distributors
A few lists and profiles

4. Henry Schein
www.indiabusinessreports.com 4Dental Distribution Business
(USD)
Market Cap 13.39B
Total Revenue 10.63B
EBITDA 921m
Net Income 509m
Employees 17000
Dental Business 5.30B
• Largest distributor of dental products and services in the world.
• Also claims No 1 status in USA, EU and ANZ.
• Serves 90% of dental practices; 70% of dental labs in the US
• Serves 65% of dental practices in EU
• Services 80% of dental practices in ANZ
• Over 2600 field staff
• Operates in 33 countries
• Strong growth track record; revenues have grown at 15% CAGR over 2 decades
• Logistics
• 62 warehouses with 4.5million sft of storage space
• Has done 11 acquisitions in the last 4 years to build global dental presence
including Japan, Brazil, Italy, Poland
Source: Investor presentation

5. Henry Schein’s dental acquisitions
www.indiabusinessreports.com 5Dental Distribution Business
Source: Investor presentation

6. Patterson Companies Inc
Items (USD)
Market Cap 4.25B
Total Revenue 5.38B
EBITDA 430m
Net Income 186m
Employees 7000
Dental Busines 2.5B
www.indiabusinessreports.com 6Dental Distribution Business
• Dental business is 47% of revenues, 135 years in dental business
• Revenue a mix of consumables, equipment and services
• North America’s largest provider of capital equipment, including CAD/CAM
& digital technology
• 2800 employees, including 1500 direct sales reps, 400 customer support,
300+ clinical trainers on rolls
• Claims industry’s most extensive digital training capabilities
• 105,000 SKUs, strong focus on logistics
• 79 warehouses, 2.6 million sft of storage space
• 23,000 orders per day
• 96% of customers served in one day
• 500 fleet
• 1400 associates involved in deliveries
• Pattersondental.com is its ecommerce initiative.
56%33%
11%
Dental Sales Mix
Consumables Equipment Training
Source: Investor presentation

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VC/PE investments in India

8. Thank You
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www.indiabusinessreports.com VC/PE investments in India