For the complete report, get in touch with us at : info@netscribes.com Over-the-counter drug market in India ranks eleventh in the global OTC market and is expected to reach the ninth position within the next five years. Since Indian patients have a huge tendency for self treatment, the Indian market is characterized by a huge demand for OTC drugs. It is a highly fragmented market with a large number of foreign and domestic players. Rising consumer confidence in OTC products, increasing number of shifts from prescription to OTC drugs, increasing focus on brand building, booming retail growth and changing demographics is helping the market to grow. The Indian Government, on its part has taken initiatives to reduce drug prices, has made certain reforms in the tax structure and has undertaken various other initiatives to promote the OTC market. The market is expected to exhibit steady growth over the next few years. The report begins with the introduction section which offers a brief insight into the major over-the-counter segments. It then moves to the market overview section which provides an insight into the global market and then moves on to the Indian market, highlighting the market size and growth. The top ten OTC brands in both the Indian and the global market, along with the sales figures have been provided. The report also provides individual market sizes for the different segments of the OTC market. An analysis of the drivers explains the factors for growth of the industry including rising consumer confidence in OTC products, increasing number of shifts from prescription to OTC drugs, booming retail growth, increasing focus on brand building, changing demographics and lower price control. The key challenges include low penetration in rural areas, preference of home remedies to OTC products, high competition and time consuming clinical trial procedures The government initiatives section gives analyses the efforts to reduce drug prices, changes in the customs duty structure and the various other initiatives undertaken by the Government. A brief overview of the drug market value chain and drug regulations is presented in the next section. It analyses the pharmaceutical value chain, and focuses on the different stages of clinical trial that a drug must pass through. A snapshot of different regulatory frameworks existing in the Indian pharma industry has been shown. The competition section gives overview of pharmaceutical companies in the country operating in the OTC product industry. Thereafter, the report highlights the features of the major players operating in the market in detail. It includes elaborate profile of the major players in the market along with their financial analysis. Porters Five Forces Analysis has been incorporated for a brief but effective understanding of the market scenario. It also incorporates the recent developments in the OTC drug industry.

1. Insert Cover Image using Slide Master View
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OTC Drug Market ‐
OTC Drug Market India
June 2012

2. Executive Summary
 India currently ranks eleventh in the global Over‐the‐counter (OTC) drug market
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‐‐
Drivers: Challenges:
 Rising consumer confidence in OTC  Low penetration in rural areas
products  Preference of home remedies
 Switch of prescription drugs to OTC  Competitive market
Drivers and
widens growth opportunity of OTC
Challenges  Time consuming clinical trial procedures
 Increasing focus on brand building
 Booming retail growth
 Changing demographics
 Lower price control
Public Players Private Players
Competition Player 1; Player 2; Player 3; Player 4; Player 5; Player Payer 1; player 2; Player 3; Player 4
6; Player 7; Player 8; Player 9; Player 10; Player11
OTC DRUG MARKET IN INDIA 2012.PPT 2

3. Global OTC drug market is expected to witness a huge
growth over the coming years
Global Market – Overview Market Size and Growth
• OTC pharmaceutical is one of the largest segments of INR XX
the overall pharma market
p 8 M%
A5 A6
A2 A3 A4
• The market has a size of INR A1 unit in 20‐‐ and is 6 A1
expected to grow at a CAGR of m % from 20‐‐ to 20‐‐ 4
• Cough and cold medicines are the leading contributor in 2
the global market, comprising almost p% of the total
0
market 20‐‐ 20‐‐ 20‐‐e 20‐‐e 20‐‐e 20‐‐e
• Major growth is expected to come from the Asia‐Pacific Note: Revenue fluctuations caused due to the changes in exchange rate
region, which is the largest contributor to global sales
region, which is the largest contributor to global sales
OTC Drug Distribution – 20‐‐
and accounts for q% of the global market
• In 20‐‐,pharmacy retail chains formed the major share of
A
the distribution channel in the global OTC pharma A% B
market, accounting for r% of the total value C
• A large number of drugs are shifting from prescription B%
to OTC, thus drives the market extensively C%
OTC DRUG MARKET IN INDIA 2012.PPT 3

4. Increasing amount of consumer confidence in OTC products
is driving the Indian market
Indian Market – Overview Market Size and Growth
• Over‐the‐counter drug market in India has a huge INR YY
potential 200 X6
y%
X5
150 X4
• Indian OTC market had a size of INR X bn in 20‐‐ and X3
X2
X1
is expected to grow at a CAGR of y% from 20‐‐ to 20‐‐ 100
50
• India currently ranks eleventh in the global OTC
India currently ranks eleventh in the global OTC
market and it is estimated that it will reach ninth 0
20‐‐ 20‐‐ 20‐‐e 20‐‐e 20‐‐e 20‐‐e
position within next five years
• Sales channels for OTC drugs are extensive, as they
Sa es c a e s o O C d ugs a e e te s e, as t ey OTC Drug Distribution – 20‐‐
do not require a drug license and can be sold by non
D3% D1
chemists as well
D4% D2
• Vitamins and minerals segments are the most D2% D3
popular segments, with a share of around Y% D4
D1%
Source:
OTC DRUG MARKET IN INDIA 2012.PPT 4

5. Drivers & Challenges – Summary
Drivers
Di
Challenges
Rising consumer confidence in OTC
products Low penetration in rural areas
Switch of prescription drugs to OTC
p p g
widens growth opportunity of OTC Preference of home remedies
Booming retail growth Competitive market
Increasing focus on brand building Time consuming clinical trial
Ti i li i l t i l
procedures
Changing demographics
Low price control
OTC DRUG MARKET IN INDIA 2012.PPT 5

6. Government Initiatives – Summary
Reduction in drug prices
Government
Initiatives
I iti ti
Other Initiatives
Other Initiatives Changes in tax structure
Changes in tax structure
OTC DRUG MARKET IN INDIA 2012.PPT 6

7. Major Companies – Summary
Net Profit
(INR mn)
4,000
Size of the Bubble represents Total Assets in
3,500 INR units
INR units
3,000
2,500
2,000
1,500
1 500
1,000
500
Revenue
0
(INR mn)
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000
Company A Company B Company C
OTC DRUG MARKET IN INDIA 2012.PPT 7

8. Public: Domestic Company – Company A (1/4)
Company Information Offices and Centres – India
Company A
Corporate Address Address Line 1
Address Line 2
Tel No. +91 xx xxxxxxxx
Fax No. +91 xx xxxxxxxx
X
Website www.a.com
Year of Incorporation
Year of Incorporation 19‐‐
19
Ticker Symbol xxx
Stock Exchange NNN
Head Office
Products and Services
Key People
Category Products/Services
Healthcare Nutritional drinks, pharmaceuticals, Name
N Designation
D i i
Management OTC
Person A Chairman, M.D.
F&B Drinks and cola Person B GM of Finance
Person c President‐ OTC Division
Person D Senior V.P. Sales & Marketing
OTC DRUG MARKET IN INDIA 2012.PPT 8

9. Public: Domestic Company – Company A (2/4)
Financial Snapshot
i i lS h Key Ratios
K i
Total Income y‐o‐y change
INR units INR units Particulars 20‐‐ 20‐‐ 20‐‐ 20‐‐
(20‐‐ ‐ ‐‐)
Net Profit / Loss Profitability Ratios
2.0 s 20
t r q Operating Margin
1.5
15 0 Net Margin
1.0 n Profit Before Tax Margin
p ‐20 Return on Equity
0.5 m o
Return on Capital Employed
0.0 ‐40 Return on Working Capital
20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Assets
Financial Summary Return on Fixed Assets
Cost Ratios
• The company earned a net profit of INR q units in FY 20‐‐, as Operating costs (% of Sales)
compared to net profit of INR r units in FY 20‐‐ Administration costs (% of
• The company reported total income of INR p units in FY 20‐‐, Sales)
registering an increase of t per cent over FY 20‐‐
registering an increase of t per cent over FY 20 Interest costs (% of Sales)
Interest costs (% of Sales)
Liquidity Ratios
• The company earned an operating margin of f per cent in FY 20‐‐, a
Current Ratio
decrease of g percentage points over FY 20‐‐
Cash Ratio
• The company reported debt to equity ratio of h in FY 20‐‐, an Leverage Ratios
increase of z per cent over FY 20‐‐ Debt to Equity Ratio
Debt to Capital Ratio
b i l i
Key Financial Performance Indicators
Interest Coverage Ratio
Indicators Value (dd/mm/20‐‐) Efficiency Ratios
Market Capitalization (INR) Fixed Asset Turnover
Asset Turnover
Total Enterprise Value (INR)
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved Decline
OTC DRUG MARKET IN INDIA 2012.PPT 9

10. Public: Domestic Company – Company A (3/4)
Key Business Segments Key Geographic Segments
x y z 100% A
100
80
x 60
x x
x 40 Company A has been solely
operating in India
y 20
z y z y z y z
0
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
Business Highlights
Description
i i News
• Company A is an integrated research based company that produces a wide range of generic medicines
Overview
• 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
• Is making consistent effort for continual improvement in rural areas with respect to accessibility of
Key Initiatives medicines
OTC DRUG MARKET IN INDIA 2012.PPT 10

11. Public: Domestic Company – Company A (4/4)
OTC Products
OTC P d t
Product Category OTC Products
Pain Management Product A, Product B
Congestion
Product C, Product D
Management
Healthcare
Product E, Product F
Management
OTC DRUG MARKET IN INDIA 2012.PPT 11

12. Thank you for the attention
The OTC Drug Market – India report is part of Research on India’s Healthcare Series.
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