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Healthcare An Unprecedented Opportunity

Healthcare An Unprecedented Opportunity. March 2005. Healthcare. India - An Overview Market and Growth Potential Players Opportunities Why India? Contact in India. March 2005. India - An Introduction. Population States/UTs Geographical Area Languages recognised Business language

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Healthcare An Unprecedented Opportunity

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  1. HealthcareAn Unprecedented Opportunity March2005

  2. Healthcare • India - An Overview • Market and Growth Potential • Players • Opportunities • Why India? • Contact in India March2005

  3. India - An Introduction • Population • States/UTs • Geographical Area • Languages recognised • Business language • Per Capita Income** • GDP** Over 1 bn 35 3.3 mn sq kms 22 English US$ 534 US$ 650 bn **(at factor cost & at current prices) 1USD=43.54 INR (as on July 4, 2005) Source:CSO Statistics

  4. India - Fast pace Growth • Largest democracy • 4th largest economy by PPP index • 6th largest energy consumer • ForEx reserves skyrocket from US$ 42 bn (2001) to US$ 133 bn (February, 2005) • GDP growth to continue between 6-8% • 3rd largest economy by 2050: Goldman Sachs • Leading in IT & BPO • Oil & Gas & Biotechnology sunrise industries

  5. India - Leading the world • Hero Honda - largest manufacturer of motorcycles • Moser Baer - 3rd largest optical media manufacturer in world • Pharmaceutical Industry - 4th largest in world • Walmart, GAP, Hilfiger source more than USD 1bn worth apparel from India • 100 Fortune 500 have set R&D facilities in India including GE, Delphi, Eli Lilly, HP, Heinz and Daimler Chrysler

  6. Healthcare • India - An Overview • Market and Growth Potential • Players • Opportunities • Why India? • Contact in India March2005

  7. Healthcare Delivery Market Sector Direct employment Revenues/GDP Million, 2000-2001 Per cent, 2000-2001 Healthcare Education Retail banking Power Railways Telecom Hotels, restaurants IT Revenues Largest service industry Employment Second largest after education Source: National Accounts Statistics, 2001; Manpower profile; CBHI; McKinsey analysis March2005

  8. Healthcare Delivery Market Size US$ 18.7 bn 2000-01 5.2% of GDP US$ 45 bn 2012 (projected)* 8.5% of GDP • Growing at 13% p.a • Expected to grow at 15% over next 4-5 years March2005 * Source: CII – McKinsey

  9. Rising Healthcare Spending 5.2% of GDP Total Healthcare market Healthcare delivery market Pharma market India spent US$ 22.4 billion on healthcare (2001) March2005

  10. Household - Major Consumer Direct household spend Private/social/ community insurance Employer’s spend Government’s spend Two-thirds of healthcare spending is out-of-pocket 100% = USD 1,830 million Source:NSSO;CMIE;NCAER;Annual Reports;Govt Budgets;Economic Survey 2000-01 Prepayment Out-of-pocket 2000-01 March2005

  11. Healthcare - Private sector Dominates Government & public employers Private providers In terms of delivery, private providers capture 63% of US$ 1,830 million spend Source: CII -McKinsey 100% = USD 1,830 million March2005

  12. Health Insurance in India • Liberalising insurance sector • Multinationals building local partnerships March2005

  13. Health Insurance in India • Health insurance cover 3 - 4 % of 1 billion population • Growth of insurance cover 100% in last 2 years March2005

  14. Healthcare • India - An Overview • Market and Growth Potential • Players • Opportunities • Why India? • Contact in India March2005

  15. MNCs in India Philips emerging as number two in Indian medical systems market Siemens leading manufacturer of medical equipment Drager Medical joint venture between Dragerwerk AG AG and Siemens AG Wipro GE largest medical systems sales & Medical Systems service provider in India Proton Health entering India with digital health Care monitoring devices March2005

  16. Healthcare • India - An Overview • Market and Growth Potential • Players • Opportunities • Why India? • Contact in India March2005

  17. Invest in India India requires US$ 25 billion in fresh investments over the next 8-10 years Source: Indian Healthcare Federation, CII March2005

  18. Service providers Manpower training Infrastructure Insurance Materials Curative and preventive in primary, secondary and tertiary care; rehabilitative- geriartric and others Doctors, managers, nurses, technicians Medical equipments & service equipments Hospitalisation Medicines disposables Invest in India March2005

  19. Preventive and curative care Rising demand for multi and super-speciality services Shift from infectious to lifestyle diseases 85% of inpatient spend on five categories Cardiology, Oncology, Trauma, Acute Infections and Maternity March2005

  20. Rising demand for quality healthcare In ten years between 1993-94 and 2001-02, aggregate household expenditure on health services increased by an annual compounded rate of 9.3% March2005

  21. Corporatisation of Indian healthcare Corporate hospitals 150 • Private hospital beds 32% of total • hospital beds March2005

  22. Health Insurance - A vast untapped market Only 2.5 million or .25% of population insured 315 million people in India can afford insurance March2005

  23. Health Insurance - A vast untapped market Projected insurance base 2005 30 million 2010 160 million Source: India Country Commercial Guide 2002 March2005

  24. Preventive healthcare Addressable population for preventive healthcare check-ups 160 million Year - on - year growth more than 20-25% over 2001-2003 March2005

  25. Healthcare BPO - Promising dynamism Medical billing Claims adjudication By 2008 USD 4.5 billion opportunity employing 200,000 people* Disease coding Forms processing *Source: NASSCOM March2005

  26. Telemedicine - Diversifying opportunity • Tap the large Indian landscape • Rural population of 650 million people March2005

  27. The Indian Biomedical Devices Market • Size US$ 1.5 billion • Growing demand for medical equipment March2005

  28. Healthcare • India - An Overview • Market and Growth Potential • Players • Opportunities • Why India? • Contact in India March2005

  29. Demographic Advantage Growing population 2.5% annually Expanding working population group 65% by 2020 Improving life expectancy Age 15-54 2001 55% 2010 59% March2005

  30. Infrastructure 117 tertiary medical colleges and hospitals 1,200 ESI and PSU hospitals Tertiary Care 4,400 district hospitals 2,400 Community Health Centres Secondary Care • 23,000 Primary Health Centres • 132,000 Sub-centres Primary Care • 1500 urban health posts Urban Rural March2005

  31. Medical Tourism • Healthcare facilities - high quality at low cost • Edge in surgical treatment Potential to earn USD 1 billion from medical travel

  32. Cost Advantage Treatment India US Liver Transplant 40,000 5,00,000 Heart surgery 5,000 - 7,000 30,000 Bone Marrow Transplant 30,000 2,50,000 All figures in USD Cost of advanced surgeries in India is attractively low compared to US March2005

  33. Quality Advantage Services and facilities in India Low in cost High on quality March2005

  34. Policy Advantage Increase in 5% of GDP by 2010 health spend Increasing budgetary Over 20 % per annum allocation 2005 Union Budget Infrastructure status not conferred 2005-06 Custom Tariff on Rates reduced from20% to 15% medical equipment March2005

  35. Healthcare • India - An Overview • Market and Growth Potential • Players • Opportunities • Why India? • Contact in India March2005

  36. Contact in India Indian Healthcare Federation c/o Confederation of Indian Industry 23, Institutional AreaLodi RoadNew Delhi - 110 003. Tel 00 91 11 2462 9994-97 Fax 00 91 11 2462 6149/2461 5693 E mail zakariah.ahmed@ciionline.org March2005

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