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Transcript of 2008-wdtc-nayyar.ppt
Special thanks to Mr Eric ShirleySpecial thanks to Mr Eric Shirley
Dental Trade Alliance
US Dental Trade US Dental Trade OpportunitiesOpportunities
in in IndiaIndiaPresented by:Presented by:
Arun Nayyar DMDArun Nayyar DMDPresident & CEOPresident & CEO
A N O V I InternationalA N O V I International
United States United States of of
IndiaIndia
Special thanksSpecial thanks
Dr Yogesh VirmaniDr Yogesh VirmaniDR Sandesh mayekarDR Sandesh mayekarMr Rajnish VermaMr Rajnish Verma
Arun NayyarArun Nayyar BDS, DMD, MS,BDS, DMD, MS, Cert Fixed Pros Cert Fixed Pros
Private Practice – – Atlanta, Georgia, USAAtlanta, Georgia, USA
Principal Research ScientistPrincipal Research Scientist Dental Technology Center @ GaTech
Director of Fixed Prosthodontics Director of Fixed Prosthodontics MCG School of Dentistry, Augusta, Ga-retired
BRIC BRIC Report, Report,
Goldman Goldman SachsSachs
BRIC BRIC Report, Report,
Goldman Goldman SachsSachs
“I have never seen India so dynamic, vibrant and full of
business opportunities”.
- - Dan Dan Scheinman, Scheinman,
Cisco System Cisco System Inc. as told to Inc. as told to
Business Week, Business Week, August 2005August 2005
- - Dan Dan Scheinman, Scheinman,
Cisco System Cisco System Inc. as told to Inc. as told to
Business Week, Business Week, August 2005August 2005
“We came to India for the costs, stayed for the
quality and are now investing for innovation”.
John RedwoodJohn RedwoodEconomic Economic
Competitiveness Competitiveness Policy Group, UKPolicy Group, UK
John RedwoodJohn RedwoodEconomic Economic
Competitiveness Competitiveness Policy Group, UKPolicy Group, UK
“India is now truly a land of
opportunity”.
Jack WelchJack WelchGeneral ElectricGeneral Electric
Jack WelchJack WelchGeneral ElectricGeneral Electric
“India is a developed country as far as
intellectual capital is concerned”.
Peter Loescher Peter Loescher Chief Executive Chief Executive
SiemensSiemens
Peter Loescher Peter Loescher Chief Executive Chief Executive
SiemensSiemens
By 2032, India will be among the three largest economies
in the world.
Why India? – Quote UnquoteWhy India? – Quote Unquote
Craig BarrettCraig BarrettIntel Intel
CorporationCorporation
Craig BarrettCraig BarrettIntel Intel
CorporationCorporation
“India has evolved into one of the world's leading technology
centers“.
Mr Paul de Voijs Mr Paul de Voijs Volvo Car India Volvo Car India
Mr Paul de Voijs Mr Paul de Voijs Volvo Car India Volvo Car India
“India is a very exciting market and the luxury car
segment is growing exponentially here”.
Understanding Understanding IndiaIndia
India is a multifaceted India is a multifaceted nationnation
Regions are as diverse as Regions are as diverse as countries of Europe.countries of Europe.
People and WorkersPeople and Workers
The United States of IndiaThe United States of India
Destination IndiaDestination India
IT IT is is
rapidly increasing rapidly increasing India’s India’s
global economic presenceglobal economic presence
India’s rising India’s rising economic profile economic profile
20072007
Per capita Per capita $797 ( 1 : $797 ( 1 : 8 )8 )
9.4% growth in GDP9.4% growth in GDP 22ndnd only to China only to China
$830 Billion GDP in 2007$830 Billion GDP in 2007
India: Fastest Growing Free India: Fastest Growing Free Market Democracy in the worldMarket Democracy in the world
New Universities
New Infrastructure
India’s India’s 20082008Shopping Shopping ListList
150 Boeing +
150 Airbus
Talent Pool – Talent Pool – our future our future customerscustomers
3.2 million new graduates 3.2 million new graduates per annumper annum
273,342
378,000
454,200
2003-04** 2005-06** 2007-08**
Non Technical Grads
2,431,903
2,557,200
2,789,100
2003-04** 2005-06** 2007-08**
Technical graduates
50% < 35years old
Destination India
New Business OpportunityNew Business OpportunityFor For
American Dental CompaniesAmerican Dental Companies
Mangalore Dental Dental Education in Education in India -2008India -2008
India USADental Colleges 268 53
New Dentists (pa) 21,000 4,100
Post Grad 2,069
Dentists 100,000120,000
5 year projection for 5 year projection for American Dental American Dental Business -Business -
100,000 Dentists today 21,000 new Dentists per year
=105,000 new customers by 2013
ALL Speak English !!!
By 2013 there will be 200,000+ dentists= twice the # of Dentists in the US
Dental offices in IndiaDental offices in India
USA : India USA : India
1 : 8 purchasing power1 : 8 purchasing power
$1 in USA = $8 in India$1 in USA = $8 in India
ROI is <15%ROI is <15%
Understanding the Indian Dental Business Understanding the Indian Dental Business
Patient PoolPatient Pool
Population Population >1 Billion >1 Billion democratic nationdemocratic nationfee for service fee for service
practicespractices <80% illiterate<80% illiterate
If 4 % are middle classIf 4 % are middle class=> 40 Million potential => 40 Million potential
patientspatients
Dentist in Private PracticeDentist in Private Practice - - Annual Gross 1 : 1 :
88
City:City: Large Large SmallSmall
Estab.PracticeEstab.Practice $100-170K$100-170K$60-80K$60-80K
Young Young $ 30-40K $ 30-40K $16-$16-22K22K
New gradNew grad $ 12-24K$ 12-24K $ 8-$ 8-15K15K
Dentist – Dentist – Gross annual incomeGross annual income
1:81:8
Large townLarge town $100,000$100,000
Small townSmall town $ 60,000$ 60,000
Dental Assistant Salary* – 1:8Dental Assistant Salary* – 1:8
Large town Large town $3,400$3,400
Small townSmall town$2,600$2,600
* annual
Dental Fees ( city size ) Dental Fees ( city size ) 1:81:8
SmallSmall LargeLarge
CompositeComposite $16$16 $50$50PFM crown (np)PFM crown (np) $40$40$150$150
VeneerVeneer $160$160 $300$300ExtractionExtraction $5$5 $15$15
Dental Lab Fees 1:8Dental Lab Fees 1:8
PFM crown (np)PFM crown (np) $20 - $40$20 - $40
VeneerVeneer $35 - $70$35 - $70
DentureDenture $20 - $35$20 - $35
Dental Business in Dental Business in IndiaIndia
Current market > US $60 million Current market > US $60 million Germany, France, Japan, Taiwan Germany, France, Japan, Taiwan
and Korea dominate the marketand Korea dominate the market Major presence Dentsply and 3MMajor presence Dentsply and 3M Very price sensitive marketVery price sensitive market < 15% profit< 15% profit
200,000+ dentists by 2013200,000+ dentists by 2013
100 % market growth potential100 % market growth potential Very Price sensitive market Very Price sensitive market Buying power is 1:8Buying power is 1:8 Corporate profit margin 10 -15%Corporate profit margin 10 -15% 40million potential patients40million potential patients Do not expect immediate returnsDo not expect immediate returns Educate the dentist and Educate the dentist and consumerconsumer
US dental US dental presencepresence
Comments from Comments from Dental DealersDental Dealers
Very little US dental presence Very little US dental presence US sell via small dealers, inconsistent US sell via small dealers, inconsistent Little customer supportLittle customer support Reluctant to work with Indian vendorsReluctant to work with Indian vendors Do not understand India marketDo not understand India market 1: 8 price sensitive1: 8 price sensitive
“ “ INDIAN INDIAN DENTISTS DENTISTS
PREFER TO USE PREFER TO USE AMERICAN AMERICAN
DENTAL DENTAL PRODUCTS “PRODUCTS “ Read US English publicationsRead US English publications
Internet access to US dental Internet access to US dental magazinesmagazines
American dental books in American dental books in standard curriculumstandard curriculum
How can a small US company access How can a small US company access the the
Indian dental market?Indian dental market? Hire a Consultant, understand the Hire a Consultant, understand the
marketmarket
Partner with established Indian Partner with established Indian companiescompanies
Meet wth Indian Trade Visitors Meet wth Indian Trade Visitors
Indian Dentists visiting USIndian Dentists visiting US
Profile of Indian Dental Profile of Indian Dental CompaniesCompanies
Most are small tradersMost are small traders There are 8 -10 well There are 8 -10 well
established Co.established Co. Each city has 1 or 2 major Each city has 1 or 2 major
vendorsvendors They all sell what is availableThey all sell what is available
Doing businessDoing business in India in India
1 : 81 : 8 Pricing for the local economy Support products with good
marketing Support International and
Domestic speakers
Long term ROI Long term ROI
Imports duty is 40%Imports duty is 40% Joint venture with 51:49 equity Joint venture with 51:49 equity
partnerpartner Establish local packing facilityEstablish local packing facility Import knock down , assemble Import knock down , assemble
locallylocally Plan to manufacture locallyPlan to manufacture locally
Major CitiesMajor Cities
Major cities: Major cities: Delhi, Chennai, Mumbai, Delhi, Chennai, Mumbai, BangaloreBangalore
Many 2Many 2ndnd level cities with level cities with great demandgreat demand
Establish an OfficeEstablish an Office
Location - Delhi or MumbaiLocation - Delhi or Mumbai
$2500 month for office space$2500 month for office space
$5000 month for sales force$5000 month for sales force
$1000 - $5000 for marketing$1000 - $5000 for marketing
Grey market Grey market
Because of special pricing – Because of special pricing – always an issuealways an issue
Pack for local market, Pack for local market, copy the drug industry – change copy the drug industry – change
name , same product name , same product Control volume salesControl volume sales Work with known vendorsWork with known vendors Establish your own sales forceEstablish your own sales force
Is money safe?Is money safe?
Democratic countryDemocratic country Established legal Established legal
systemsystem International banks International banks Full $$ conversionFull $$ conversion Free currency flowFree currency flow
Great Great PreferencePreference for for
US US ProductsProducts
Endo, Prosthetic, Restorative and Endo, Prosthetic, Restorative and ImplantsImplants
Composite, Impression materialsComposite, Impression materials Cement systemsCement systems Ceramic and Resin Lab productsCeramic and Resin Lab products Lab and clinic productsLab and clinic products Dental Chairs, UnitsDental Chairs, Units
MYMY Strategy Strategy
1.1. Establish an AMERICAN trading Establish an AMERICAN trading groupgroup
2.2. Share costs , Hire a ConsultantShare costs , Hire a Consultant
3.3. Open a trade office in IndiaOpen a trade office in India
4.4. Send US opinion leaders to lectureSend US opinion leaders to lecture
5.5. Showcase products at trade showsShowcase products at trade shows
6.6. Advertise aggressivelyAdvertise aggressively
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $$ $
Anovi International – a US dental consulting group for India
Thank youThank you
Questions PleaseQuestions Please
