Business Opportunities in

Private Hospital Sector in India

Time to seize the business opportunity

The Growth of Healthcare Industry in India

• Indian government has decided to increase its health expenditures to 2.5 % of GDP by the end of 2017

• Healthcare sector is expected to reach USD 100 billion by 2015 - this means annual growth rate of 20%

• The hospital service industry in India is growing very fast with CAGR of 9%

• Medical tourism industry is important revenue source (~20% of revenues) for hospitals – it is worth of $2 billion and growing annually 20%.

• Three identified growth sectors are oncology, orthopaedics and cardiology

• 100 per cent FDI is permitted for health and medical services

• Reduction of customs duty for 5-7.5% on all medical, surgical and dental equipment

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Private Hospital Sector in India

• Private sector accounts for 65% of the total number of operational beds and over 80% of the healthcare spending

• It is expected to grow 24.1% annually until 2020 - it will contribute 80% of the USD 86 billion healthcare investment required until 2025

• In the private sector supply processes for new procurements are shorter and more flexible than in the governmental hospitals

• Private sector provides special healthcare services -they have need for specialized technology and services • Apollo Telemedicine Network

Foundation

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Major Private Hospital Chains in India in Figures

Name Hospitals Beds

Apollo Hospitals 54 8,717

Fortis Hospitals 48 6,292

Manipal Hospitals 15 3,700

CARE Hospitals 12 1,600

MAX Healthcare 11 1,100

Sterling Hospitals 6 1,027

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The Presence of Major Private Hospital Chains

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CARE Hospitals

Hyderabad 2

Nampally 1

Secunderabad 1

Visakhapatnam 1

Nagpur 1

Raipur 1

Bhubaneswar 1

Surat 1

Pune 1

Vizag 1

Fortis Hospitals

Amritsar 1

Bangalore 6

Chennai 1

Faridabad 1

Gurgaon 1

Jaipur 1

Kolkata 3

Mohali 1

Mumbai 3

New Delhi 4

Noida 1

Raipur 1

Manipal Hospitals

Bangalore 5

Tumkur 1

Salem 1

Mangalore 1

Vijayawada 1

Goa 1

Visakhapatnam 2

Apollo Owned Hospitals

Chennai 9

Hyderabad 8

Kolkata 2

Delhi 2

Bangalore 1

Ahmedabad 2

Other India 12

MAX Healthcare

New Delhi 9

Mohali 1

Bathinda 1

Sterling Hospitals

Ahmedabad 1

Vadodara 1

Rajkot 1

Mundra 1

Bhavnagar 1

Adipur 1

Chennai

New Delhi

Ahmedabad

Mumbai Kolkata

Bangalore

Hyderabad

Jaipur

Raipur

Oncology Sector in India

• Indian oncology market is expected to grow strongly in the coming years:

– rising incidence of cancer

– improved diagnostic capabilities

– improved access to cancer therapies

– better health insurance coverage

• As the Indian economy continues to grow, more people will gain the financial ability to seek cancer treatment, while the growing middle class will drive demand for innovative branded therapies

• While domestic companies dominate the market with branded generics, all major multinational pharmaceutical companies have a presence in India, targeting a small but significant part of the population that can afford the price premium associated with global brands

• Plans to increase government expenditure on health and improve access to cancer drugs will also drive the uptake of cancer therapeutics in the future

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Orthopaedics Sector in India

• With a growing population of potential patients, rising

awareness about the impact of joint problems, and the

importance of surgical treatments, the market for orthopaedic

implants promises to be one of the most lucrative segments in

the Indian medical device market

– estimated to grow to USD 878.3 million by 2017

– surgical expenses are 60-80% lower than U.S. costs

– Indian orthopaedic joint replacement market is expected to grow

26.7% CAGR during 2010-2017

– over 70,000 hip and knee replacements are performed every

year

• Growth drivers: increase in aging population, sedentary

lifestyle, booming economy, better healthcare infrastructure

and the opening up of the insurance sector

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Cardiology Sector in India

• India is likely to emerge as the

global capital of heart diseases

by 2025 (WHO)

• Interventional cardiology market

in India is estimated to grow at

a CAGR of 25.5% over the

period 2011–2015

– One of the key factors

contributing to market growth is

the increasing incidence of

cardiovascular diseases

• The robotic surgery in

interventional cardiology

procedures is increasing as way

of treatment

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Opportunities in Private Hospital Sector in India

• Business opportunities for Finnish companies exist:

– Laboratory analyzers and diagnostic kits

– Diagnostic devices applicable for telemedicine applications (e.g. imaging systems, spirometer, ultrasound)

– Surgical instruments

– Equipment for surgery departments

– Health IT (HIS, LIMS, PIS, Telemedicine)

– High-end medical furniture

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Opportunities in Green Hospitals in India

• Green buildings are a market worth of USD 30 billion in India with growth rate of 10-15% during the next decade

• Opportunities for Finnish companies exist especially in:

• Buildings: structural design, indoor air quality, resource efficiency, automation and monitoring

• Waste: source reduction and segregation, waste water management, treatment and disposal, water use efficiency

• Water: collection and segregation, transportation and storage, disposal techniques and treatment technology

• Energy Efficiency: air-conditioning, lightning and electrical, boilers and hot water solutions for energy efficiency

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Entry Options Partner Search

Test Drive Direct Sales

Improving the

Market Position

Establishing the

Presence

Finpro Navigator

Planning The

Market Entry

Preparing the

Growth

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Valmistelurahoitus

max. 15 k€/ 70 % tuki

Projektin max. arvo 21 400 €

Yrityksen

kehittämisavustus

n. 50–100 k€ / 50 % tuki

Yhteishankintakoulutus

n. 30-130 k€ / 60-70 % tuki

Finnpartnership

tuki 3v max. 200 k€ /

30/50/70 % tuki

Julkisia rahoituksia pk-yrityksille:

Rahoitusvaihtoehtoja 2013 kansainvälistyville pk-yrityksille

Go Global Plus

Arvo n. 21 k€

Hinta pk-yritykselle 5 500 €

© Finpro

Tekes avustus

asiantuntijapalveluihin

50-75% tuki max 100 k€

Tekes De minimis avustus

35-50% tuki max 100 k€

Tekes T&K avustus

25 - 65 % tuki n. 20–500 k€

ja T&K laina (50-70%

kustannuksista)

More information

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© Finpro

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Christine Grumbach

Senior Consultant

Head of Health Technology sector

christine.grumbach(a)finpro.fi

Tel +49 171 8893 000

Seppo Keränen

Regional Sales Manager

India, Middle-East, Africa

seppo.keranen(a)finpro.fi

Tel +358 400 535 907

Anna Erkkilä

Senior Consultant

Region Finland

anna.erkkila(a)finpro.fi

Tel +358 40 3433420

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