Future Roadmap for Industry of Surgical
Instruments of Pakistan
5/6/2011
Basit Rauf
Director TDAP
Sialkot
Table of Contents1. Profile of Industry2. Product HS Code3. World Exports of Surgical Instruments4. Export of Surgical Instruments from Pakistan5. Export Destinations6. Top Buyers of Surgical Instruments of World7. Support from TDAP for Surgical Cluster8. SWOT Analysis9. Value Analysis10.Vision11.Suggestions
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Profile of Industry
• Capital Investment: Rs 18 bn
• Size of Industry: 3000 units
• Employment: 500,000
• Single use instruments 80%
• Re-usable instruments 20%
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Product HS Codes
1 9018 31 Syringes with or with or without needles, parts accessories
2 9018 90 Instruments & appliances for medical surgical dental veterinary
3 9018 49 Dental Instruments and appliances
4 9018 50 Ophthalmic instruments
5 9021 Orthopedic appliances, bone plates/screws/nail, pacemakers
6 9402 90 Medical, surgical, dental furniture, similar chairs, operating tables, hospital beds, dentists chairs
7 8213 Tailor, barber &stationary scissors etc.
8 8214 20 Manicure and Pedicure instruments
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World Exports of Surgical Instruments Under HS Code 9018Value in Thousand US $
Source: UN Comtrade
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Country 2007 Share % 2008 Share % 2009 Share %
World 68,963,165 80,483,280 77,668,849
USA 17,254,160 25.02 20,051,360 24.91 20,137,423 25.93
Germany 9,923,722 14.39 11,371,553 14.13 10,531,688 13.56
Netherlands 5,437,067 7.88 5,866,095 7.29 5,767,732 7.43
Belgium 3,135,491 4.55 4,300,586 5.34 4,196,479 5.40
Japan 3,844,916 5.58 4,073,653 5.06 3,697,989 4.76
Ireland 2,130,545 3.09 3,320,008 4.13 3,123,952 4.02
France 2,722,657 3.95 3,184,646 3.96 2,970,150 3.82
UK 2,116,605 3.07 2,215,086 2.75 2,139,653 2.75
PAKISTAN 229,517 0.33 269,730 0.34 242,945 0.31
Exports of Surgical Instruments from Pakistan
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0
50
100
150
200
250
300
2005-06 2006-07 2007-08 2008-09 2009-10
Export M US $ 163
191
261250
229
Source: TDAP
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72% of our production is sold to
following eight countries of the
world:• USA 25.54
• Germany 14.66
• UK 10.67
• France 5.18
• Italy 3.87
• Brazil 2.37
• UAE 2.23
• Australia 2.08
• Japan 2.05
• Belgium 1.70
• Mexico 1.51
• Other partners 28.14
Source: UN Comtrade 2009
Export Destinations
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25.54
14.66
10.675.183.87
2.372.232.08
2.05
1.70
1.51
28.14
USA
Germany
UK
France
Italy
Brazil
UAE
Australia
Japan
Belgium
Mexico
Other partners
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Top Buyers of Surgical InstrumentsUS$ 000
Source: UN Comtrade
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Years2009 2008 2007
Sr.#Importer Trade Value Importer Trade Value Importer Trade Value
1USA $13,378,410 USA $14,279,915 USA $13,413,438
2Germany $6,598,303 Germany $6,763,912 Germany $5,869,553
3Netherlands $5,060,126 Netherlands $5,194,639 Netherlands $4,665,851
4Japan $4,317,509 Japan $4,464,992 UK $3,904,095
5Belgium $4,202,190 UK $4,343,674 Japan $3,811,695
6France $3,770,125 Belgium $4,129,994 France $3,440,566
7UK $3,691,046 France $4,094,313 Belgium $3,006,422
8Italy $3,009,872 Italy $3,085,571 Italy $2,763,139
9China $2,450,200 Russia $2,293,290 Spain $2,049,426
10Canada $2,086,066 Spain $2,224,431 Canada $1,940,078
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Support of Trade Development Authority of Pakistan to Surgical Instruments Sector
• Trade Policy Initiatives (Cluster Development Programme)
• Establishment of SIMTEL
• Support for Elimination of Child Labour
• Marketing Support
• Facilitation (CBI Training Programme)
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Strengths
•100 years history
• Well known in global markets
• Established distribution networks
• Wide range of products
• Flexible production systems
•Availability of cost effective skilled labour
SWOT Analysis
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Weaknesses
• Limited direct contact with surgeons (End Users)
• Inconsistent product quality
• Focus on low-tech, low quality, low value products
• Shrinking profit margins
• Informally trained work force
• Absence of work force for emerging technologies
• Lack of quality raw materials
• Absence of R & D
• Lack of linkages with academia
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Opportunities
• Rapidly Growing Market
• Demand of high tech products
• Rising demands in African and Asian markets
• Diversification into General Healthcare Industry
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Threats
• Emerging technologies replacing conventional instruments
• Market becoming highly regulated
• Diminishing skilled work force
• Inability to stay together
• Vendor Production Practices
• Compliance with labour, quality, social and environmental
standards
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TODAY TOMORROW
Conventional production methods, and
low value products
Modern techniques of production, high value
products
Lack of formal training at all management
levels (Top, Middle, First line)
Better skilled jobs; more productive workforce
“Cut throat” competition Stronger industry collaboration to improve
marketing & cater growing global market
Poor access to raw materials for hi-tech
products.
•In time availability of quality raw materials
•R&D for improving the quality of existing
materials & new materials development
Low value/ low margin products •Increased value addition
•High value/ high margins
Declining exports: Pakistan Market share
of total global market (less than 1%)
Achieve 1 Billion USD export target
Value Analysis
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Vision
A Paradigm shift
Low – Value
Conventional InstrumentsHigh – Value
Medical Devices$ $
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Suggestions
• Establishment of Surgical Instruments Training
Institute
• Establishment of R&D Cell in the Training Institute
• Establishment of Common Facility Centre
• Up gradation of SIMTEL
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Suggestions
• Minimum Export Price Fixation Regime (MEP)
• Support for Certifications
• Networking through Cluster Development
Programme
• Marketing
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THANK YOU
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