The presentation revolves around the medical device sector of India, its comparison on world level and the role of logistics and supply chain in the Indian Industry

1. MEDICAL DEVICE SECTOR IN INDIA
ANALYSIS OF LOGISTICS AND SUPPLY CHAIN

2. • Healthcare has become one of
India's largest industries both in
terms of revenue and employment
• During 2008-16, the market
recorded a growth of 15.46% and
during 2017-20, the market is
expected to record a CAGR of 17
percent
• The total industry size is expected
to touch USD160 billion by 2017
and USD280 billion by 2020
• Indian companies are entering
into merger and acquisitions with
domestic and foreign companies to
drive growth and gain new
INDIAN HEALTHCARE INDUSTRY

3. Hospitals
• Government Hospitals
• Private Hospitals
• Train Hospitals
Pharmaceuticals
It includes manufacturing, extraction, processing , purification and packaging of
chemical materials for use as medications for humans and animals
Diagnostics
It comprises businesses and laboratories that offer analytical or diagnostic
services
Medical Devices
It includes establishments primarily manufacturing equipments for the
diagnosis and cure of diseases
Medical Insurance
It includes health insurance & reimbursements facility , covering
hospitalization charges incurred by patients due to sickness
Telemedicine
It is the use of the remote diagnosis and treatment of patients by means of
telecommunication technology
COMPONENTS OF INDIAN HEALTHCARE

4. MEDICAL DEVICE
Medical device means any instrument, apparatus, implement, machine, appliance,
implant, reagent for in vitro use, software, material or other similar or related article,
intended by the manufacturer to be used, alone or in combination, for human beings,
for one or more of the specific medical purpose(s) of:
• diagnosis, prevention, monitoring, treatment or alleviation of disease,
• diagnosis, monitoring, treatment, alleviation of or compensation for an injury,
• investigation, replacement, modification, or support of the anatomy or of a
physiological process,
• supporting or sustaining life,
• control of conception,
• disinfection of medical devices
• providing information by means of in vitro examination of specimens derived from the human
body;
and does not achieve its primary intended action by pharmacological, immunological
or metabolic means, in or on the human body, but which may be assisted in its
intended function by such means.
Source:- http://www.who.int/medical_devices/definitions/en/

5. Equipm
entsDisposable
Implants
 Equipments (50-55%)
(ophthalmic, dental, and other medical equipment)
Market Leaders:- J&J, GE, Medtronic
 Disposables(20-30%)
Market Leaders:-
Hidustan Syringes and Medical Devices
Poly Medicure Ltd.
 Implants (15-20%)
Market Leaders:- Siora Surgicals , GPC Medical Ltd.
MEDICAL DEVICE SEGMENTS
In India, Medical devices are classified into three main categories:-
Source:- Global Marketing Emergo Group Inc.

6. MEDICAL DEVICE SEGMENTS
According to The Drugs Technical Advisory Board(DTAB) of India,
medical devices have been classified under following categories :-
CLASS RISK LEVEL EXAMPLES
A Low Risk Thermometers
B Low-Moderate Risk Hypodermic Needles
C Moderate-High Risk Lung Ventilator
D High Risk Heart Valves

7. FACTS OF SECTOR

8. MAJOR PLAYERS
COMPANY HEADQUARTER TOTAL REVENUE(USD)
Johnson & Johnson New Jersey, United States 71.89 billion
General Electric Co. Boston, United States 123.7 billion
Medtronic Inc. Dublin, Ireland 28.83 billion
Siemens Germany 79.64 billion
Baxter International Inc. Deerfield, United States 10.16 billion
Koninklijke Philips NV Netherlands 24.51 billion
Novartis International AG Switzerland 48.52 billion
B.BRAUN Germany 5.4 billion
BECTON DICKINSON INDIA New Jersey, United States 10.28 billion

9. REGULATORY BODY IN INDIA
Central Drugs
Standard
Control
Organization
(CDSCO)
Drugs Controller General of India
(DGI)

10. FACTORS AFFECTING THE SECTOR
Factors
Local Market
Sentiments
Healthcare
Providers
Regulatory
Environment
Technological
Advancement

11. UPDATIONS MADE IN INDIAN DEVICE REGULATORY REGIME
Prime Minister Narendra Modi’s Ministry of Health published a 108 page
notification on medical devices in India.
Significant changes to medical device regulations include:
•Device licenses will no longer expire. The manufacturer will need to pay a
renewal fee every 5 years to continue marketing the product.
•Device registration approval for imported devices will take an estimated
maximum of 9 months. Registration will automatically imply import license
and will eliminate the 3 month wait for an import license.
•If the Ministry of Health fails to complete a regulatory process in a pre-
determined amount of time, then the license will be “deemed” to be
approved.
The new regulations will come into effect January 2018.
Source:- www.pacificbridgemedical.com

12. Source:-http://www.frost.com

13. Source:-http://www.frost.com

14. COMPARISON OF MEDICAL DEVICE MARKETS
INDIA UNITED STATES CHINA
Population 1,251,695,584 321,368,864 1,367,485,388
Primary language(s) Hindi English Chinese, Mandarin
Total healthcare spending $93 billion $3000 trillion $574 billion
Healthcare expenditures
total (% of GDP)
4.7% 17.1% 5.5%
Healthcare expenditures
per capita
$75(USD) $9403(USD) $420(USD)
Expenditures on
healthcare
Government: 30%
Private: 70%
Government: 48%
Private: 52%
Government: 56%
Private: 44%
Size of medical device
market (USD)
$3.5 billion(USD) $147.7 billion(USD) $8.7 billion(USD)
Number of hospital beds 0.7 per 1000 people 2.9 per 1000 people 3.8 per 1000 people
Age distribution
0-14 years: 28%
15-64 years: 66%
65 years and over: 6%
0-14 years: 19%
15-64 years: 66%
65 years and over: 15%
0-14 years: 17%
15-64 years: 73%
65 years and over: 10%
Life expectancy at birth
Male: 67 years
Female: 69 years
Male: 77 years
Female: 82 years
Male: 73 years
Female: 78 years
Rupee US Dollar(USD) Renminbi Yuan

15. IMPORT DATA STATISTICS OF MEDICAL DEVICES IN INDIA
Source:- https://www.zauba.com/importanalysis-medical+equipment-report.html

16. EXPORT DATA STATISTICS OF MEDICAL DEVICES IN INDIA
Source:- https://www.zauba.com/export analysis-medical+equipment-report.html

17. MEDICAL DEVICE
LOGISTICS IN INDIA

18. •Logistics is the management of the flow of resources
between the point of origin and the point of
consumption in order to meet some requirements.
•Medical Device logistics is the logistics of medical
and surgical supplies, medical devices and
equipments, and other products needed to support
doctors, nurses, and other health and dental care
providers.
MEDICAL DEVICE LOGISTICS

19. LOGISTICS PROCESS

20. LOGISTICS SERVICES

21. METHODS OF TRANSPORTATION IN INDIA
Best method for
transportation of Medical
Device is Airways because
of following reasons:-
• Timely delivery at
destination
• Safer deliveryof
Equipments

22. MAJOR HUBS OF MEDICAL DEVICE LOGISTICS IN INDIA
•Mumbai
•Ahmadabad
•Delhi NCR
• Nagpur
• Kolkata
• Hyderabad

23. ROLE OF GST IN MEDICAL LOGISTICS
• With the Implementation of Goods and Service Tax in India,
there would be reduction in logistics cost for the Industry by
almost 20%which would result in more demand and supply of
medical equipments in the country.
• Faster transportation and shipping facilities improve the
overall productivity of the sector and the several check posts
and octroi would be removed in certain states.
• The GST Regime would give a boost to the Medical Logistics,
their warehousing and their transportation across the
country.

25. MY SURVEY
• Number of Companies Surveyed - 25
• Sample Space :-
Delhi NCR(13)
Maharashtra (8)
Gujarat (2)
Haryana(1)
Karnataka (1)
• Data Collection Method - Telephonic
Interview

26. RATIO OF COMPANIES SURVED BY COMPANIES CONTACTED
Companies Contacted= 188
Companies Surveyed = 25
Ratio = 25/188
= 0.13
Ratio(%) = 0.13*100
= 13%

27. MARKET CATERED BY COMPANIES
44%
5%
51%
Domestic Foreign Both

28. COMPANIES HAVING OWN LOGISTICS OR HIRE LOGISTICS PARTNER
Companies Surveyed = 25
Having own logistics = 7
Companies having
logistics partner = 18
Companie
s having
logistics
partner
Companie
s having
own
logistics

29. COMPANIES HAVING MORE THAN ONE LOGISTIC PARTNER
Companies having no
logistic partner = 7
Companies having one
logistic partner = 3
Companies having more
than one logistic partner
= 15

30. PURPOSE OF HIRING LOGISTICS PARTNER
65%5%
30%
Transportation only Warehousing Only Both

31. BASIS OF SELECTION OF LOGISTICS PARTNER
12%
15%
73%
Cost Service Cost and Service

32. WORKING ZONE IN INDIA
90%
5%
5%
Pan India Central India North India

33. IMPACT OF GST ON SECTOR
41%
40%
5%
10%
4%
Ease of Import Reduction in Taxes
No Response Not able to understand
Increase of Manufacturing in India

38. CONCLUSION
Medical Device Industry of India is projecting towards an edge
of growth. The growth of pharmaceutical, medical tourism
and the medical device sectors are somewhat co-related.
Though, the share of this sector is just 15% in the overall
industry but that small contribution is valuable for the growth
of whole industry.
Implementation of GST would definitely affect the logistics of
the Industry as there would be faster transportation from one
place to another that would result in increased productivity of
the sector.
Neha Goel