1. Indian Healthcare & Medical Devices Industry
Challenges & Opportunities

2. Current Status
Source: FICCI, Ernst & Young Study
Growth Drivers
 Growing middle class
 Rising income
 Growing and aging population
 Growing urbanization
 Growing medical tourism
 Healthcare Insurance Penetration

3. Healthcare Demand Vs Supply
HEALTHCARE SERVICES DEMAND IN INDIA HEALTHCARE SERVICES SUPPLY IN INDIA
Tertiary Conditions requiring care from Urban Maximum concentration of
Care specialized clinics and facilities corporate healthcare
Secondary Segment that require constant Semi-Urban Highly fragmented and
Care medical attention, including short unorganized sector, focus
period of hospitalization mainly on secondary care
Primary The basic healthcare facilities for Rural Even Primary & Secondary
Care common & minor ailments, and care is at times elusive
where prevention is most effective
90% patient needs primary and secondary care

4. Healthcare Demand Vs Supply
HEALTHCARE SERVICES DEMAND IN INDIA HEALTHCARE SERVICES SUPPLY IN INDIA
Tertiary Conditions requiring care from
Care specialized clinics and facilities
Hospitals
Secondary Segment that require constant Nursing homes
Care medical attention, including short
period of hospitalization Private practitioners
District & Taluk Hospitals
Primary The basic healthcare facilities for Government
Care common & minor ailments, and Community Health Clinics Funded Focus
where prevention is most effective
Primary health clinics
Opportunities in the bottom of the pyramid

5. Opportunities: Infrastructure
India Healthcare Infrastructure: Key Statistics *Statistics *
India Healthcare Infrastructure: Key
Per ‘000 population Bed Physicians Nurses
Per ‘000 population Bed Physicians Nurses
High Income Countries 7.4 1.8 7.5
High Income Countries
Middle Income Countries 4.3 7.4 1.8 1.8 7.5 1.9
Low Income Countries 1.5 1.5 1.6
Middle Income Countries 4.3 1.8 1.9
India 1.5 1.2 0.5
Low Income Countries 1.5 1.5 1.6
World Average 3.3 1.5 3.3
India 1.5 1.2 0.5
To meet 2012 demand requires investment of US$ 77.9- 88.8 billion**
 India target’s to reach a bed to thousand-population ratio of 1.85 to 2 by 2012
World Average 3.3 1.5 3.3

* Healthcare in India :excess of 1 CII & McKinsey, Data as ofto reach the ratio of 1.85*
Beds in The road ahead - million needed 2001
** Opportunities in Healthcare “Destination India” –E&Y and FICCI, Data as of Jan 2007
 To reach the target number of beds to population ration 1.55: 1000/ 2:1000 of US$ 77.9-88.8 billion**
To meet 1012 demand requires investment
 To meet 2012 demand requires investment of US$ 77.9- 88.8 billion**
Need for private sector investment amounts to US$ 69.7 billion
* Healthcare in India : The road ahead - CII & McKinsey, Data as of 2001
** Opportunities in Healthcare “Destination India” –E&Y and FICCI, Data as of Jan 2007
To reach the target number of beds to population ration 1.55: 1000/ 2:1000

6. Opportunities: Telemedicine
From patient treated by lower To patient connected to a
educated doctor multi specialty network
Radiologist
Pathologist
Cardiologist
Generalist
Second Opinion
Ophthalmologist
Oncologist
Health for the poor consists Healthcare available and
merely of general physician affordable for all
 80% of the medical facilities are concentrated in the urban area
while 73% of the population resides in the rural area
Public Private Partnership

7. Opportunities: Medical Value Travel
India’s Cost Advantage
Procedure Cost (US$)
US India
Heart Surgery 100,000 4,400
Liver Transplant 2,50,000 30,000
Bon Marrow 3,00,000 40,000
Transplant
Knee Surgery 48,000 4,500
Hip Replacement 55,000 4,500
 Indian medical tourism market could touch USD 1.5 billion by 2012
 Over 272,000 tourists traveled for medical treatment in 2007 contributing USD 656 million
in 2007
 Patents are expected to save 60% - 95% of the total treatment costs in India
 Government has created special visas for medical tourism

8. Opportunities: Health Insurance
Source: FICCI, Ernst & Young Study
 Health insurance projected to grow to US$ 3.8 billion in 2012
 Merely 10% of Indian population has got health insurance cover so far

9. Medical Devices: Overview
Source: FICCI, Ernst & Young Study
 The medical devices and equipment market growing at 15
percent per year
 Almost 65 per cent of the medical devices is imported
 US, Germany and Japan are meeting 85 % of the demand
 Most of the multinationals in medical technology has
entered India to explore the booming market

10. Medical Devices: Demand Scenario
Medical Devices & Equipment Import: Category wise

11. Medical Devices: Opportunities
 A traditionally price sensitive market, shifting towards a health conscious,
technology demanding population
 Tertiary care mostly driven by the private healthcare players who are
always ready to invest on the best and expensive equipments for their
patients
 Indian Government’s National health policy also aims to increase and upgrade health care facilities
 Government acknowledges need for foreign/ private involvement in medical technology
 The duties on medical equipments have been reduced over a period of time
 Most critical medical devices do not require duties