Market Research Report : Telemedicine Market in India 2012

Telemedicine Market IndiaTelemedicine Market – India

July 2012

Executive Summary

Market

The Indian telemedicine market is currently valued at INR xx mn and is expected to attain a CAGRof 20% to reach INR xx mn by 2015

The market has received plenty of government attention which in turn has inflicted positivegrowth rate

T l di i Point to Point

g

With the continual improvement in the field of telecommunications, the market will reach a stateof full swing in the ensuing years

Telemedicine Technology

Point to Multi Point

Multi Point to Multi Point

Drivers Challenges

Drivers and Challenges

Favorable demographics Continual improvement in connectivity Shortage of healthcare professionals in rural areas Increasing ageing population

Weak ecosystem for stake holders Implementation Issues

Drivers Challenges

CompetitionKey Telemedicine Players

Teleradiology Solutions Televital India

Increasing ageing population

2TELEMEDICINE MARKET IN INDIA 2012.PPT

Religare Technologies Apollo Telehealth Services

•Market Introduction

•Market Overview

•SWOT Analysis

•Telemedicine Technology

•Major Application Areas

•Government Initiatives

•Drivers and Challenges

•Strategic Insights – New Entrants

j l•Major Players

•Strategic Recommendations

A di


•Appendix

SAMPLE Telemedicine ‐ Summary

Communication Technology

Biomedical Engineeringgy g g

Telemedicine

Information Technology

Medical Science


Telemedicine is gaining a robust growth rate and is expected gain further traction in the years to come

• Indian telemedicine market is currently at its nascent stage, however it has tremendous potential to unfold in the years to come

Telemedicine Market ‐ Overview

SAMPLE•The market has been constantly under the priority sectors of the government as a result of which plenty of initiatives have been taken so far which in turn has infused tremendous growth opportunities

• The overall healthcare industry shells out an amount close to INR 47 bn on a yearly basis, out of which telemedicine accounts for approximately xx% SAMPLE

• Primarily, a public private partnership (PPP) is considered to be the most appropriate business model for the Indian telemedicine market

In the business model, infrastructure support can be provided by GoI, whereas the private operators can cater to the healthcare human resource requirements

INR mn

Telemedicine – Market Size & Growth

a

b

c

xx


0

2015e2014e2013e2012e2011

SAMPLE Telemedicine Market – Snapshot (1/2)

Prime Reasons for Growth

Increasing Awareness

Government Initiatives

XXXXX

Urban Market Scenario

Urban market share is very small

YYYYYY

XXXXX

Average Setup Cost Primarily ranges between INR 0.05 mn – INR 2 mn


SAMPLE Telemedicine Market ‐ SWOT Analysis Summary

•Favorable Demographics

Strength

•Lack of Technological Awareness

Weakness

•Government Initiatives

•XXXX

•YYYY

Lack of Technological Awareness

•XXX

•YYYY

SWOT Analysis

Opportunity Threat

•Arrival of 4G Spectrum•Lack of Confidence

•XXXXX


SAMPLE Types of telemedicine is basically distinguished on the basis of the participants involved

Point to Point Point to Multi Point

Types of Telemedicine

Multi Point to Multi Point


SAMPLE Point to Point Telemedicine – Framework

P ti t E d D t E dPatient End Doctors End

Digital Camera

Doctor’s Chamber

Scanner

Switch Switch

Webcam Display UnitDisplay Unit


The Framework depicted is indicative

SAMPLE Telemedicine has find its implementation across a wide range of areas

Tele ConsultationUsed to facilitate

Tele Diagnosiscommunication, so as to provide patients and local

doctors with the initial lines of treatment

Telemedicine Implementation

XXXX

YYYYYPrimarily implemented to

provide educational services

Tele Training

provide educational services including training and guidance to doctors and

paramedics

To provide monitoring servicesZZZZZZ

AAAAA

To provide monitoring services for intensive and emergency

situations

Used to provide support


AAAAA services in case of any disaster

SAMPLE Government Initiatives ‐ Summary

Department of Information Technology

Indian Space Research Organization

Initiatives

Ministry of Health and Family Welfare

Ministry of External Affairs


SAMPLE Department of Information Technology (DIT)

•Eyeing the tremendous growth prospects in telemedicine, the Department of Information Technology (DIT) has played a crucial role in the upliftment of the sector

• So far the organization has taken certain concrete initiatives including development of technology, launching pilot schemes and standardization of the overall market in India

• Further to standardize telemedicine services, DIT has drafted the ‘Recommended Guidelines & Standrads for Practice of Telemedicine in India’

• Framework used to define the guidelines and standrads can be illustrated as below:

Telemedicine Service Providers Technology Providers

Technology

XXXXX Information Exchange Standards Security AAAAAAA

Guidelines and Standards

Telemedicine ConsultationProtocolsXXXXXX

Primary

Secondary

Tertiary


Process Guidelines System Requirements

SAMPLE Indian Space Research Organization

• ISRO as a government body has been active towards the upliftment of Indian telemedicine market since its inception

Primarily, these initiatives have been started under the GRAMSAT programme

• Some of the major steps taken for the telemedicine market includes the following:

k f l ll ( ) l l h kh k h h Linking of Indian National Satellite (INSAT) to rural areas including Jammu, Kashmir & Ladakh, Andaman, Lakshadweep and NorthEastern state hospitals and health centres

It is also engaged in providing seamless connectivity between remote/ rural hospitals and super specialty hospitals so as to facilitate tele consultation, treatment & training, Continuing Medical Education (CME) and mobile telemedicine units for rural areas

XX Hospitals YYYDistrict / Rural Hospitals

ISRO Telemedicine

District / Rural Hospitals

Network

A Super Specialty HospitalsB Mobile Vans


A Super Specialty HospitalsB Mobile Vans

SAMPLE Ministry of Health and Family Welfare (1/2)

So far, the Ministry of Health and Family Welfare (MoH&FW) has taken an array of initiatives for the Indian telemedicine market, some of which can be , mentioned as below:

Joined hands with ISRO for the implementation of Disease Surveillance Programme

Establishing the OncoNET India network, which connects 25 regional cancer centres and 1– peripheral centres to provide comprehensivecancer centres and 1– peripheral centres to provide comprehensive

cancer treatment facilities and facilitate cancer prevention and research activities

Has approved tele‐ophthalmology project to provide eye care specialty services in the rural areas of Punjab, Uttar Pradesh, West Bengal, with


the aide of mobile vans

SAMPLE Ministry of External Affairs

SAARC Telemedicine Network

i i i d il j h i h i l f h f h S C i h b•Has initiated a pilot project wherein one or two hospitals from each of the SAARC nations have been connected to super specialty hospitals in India

• Super specialty hospitals identified for this project includes AIIMS, SGPGIMS, PGIMER and CARE hospital

• The project is expected to bring forth enhanced usage of telemedicine at regional levels and interconnect it e p ojec s e pec ed o b g o e a ced usage o e e ed c e a eg o a e e s a d e co ecwith other necessary areas including education, business process outsourcing and mass communication

Pam‐African e network Project

•MEA has joined hands with Telecommunications Consultants India Ltd. (TCIL) so as to establish a VSAT based t l di i d t l d ti k t f Af i t i i 53 ti f th Af i U itele‐medicine and tele‐education market for African countries in 53 nations of the African Union

• For this purpose, 10 super specialty hospitals have been identified to cater to the tele‐health service for 53 African hospitals

• This initiative will push the demands in the Indian market significantly


p g y

SAMPLE Drivers & Challenges – Summary

Drivers

Favorable demographics

Continual improvement in

Challenges

Weak ecosystem for stake holders

Continual improvement in connectivity

Shortage of healthcare professionals in rural areas

Implementation Issues

Increasing ageing population


Improvement in the field of connectivity will act as a major boon for the overall market in India

•The overall concept of telemedicine is majorly dependant on the connectivity medium available

•Generally, internet and satellite connections are the prime modes to interconnect a remote

Continual improvement in connectivity Impact

SAMPLE y, p

health centre to the concerned healthcare authority

• Currently, the overall connectivity (both internet as well as satellite) in India has gained significant momentum and is expected to grow further in the years to come, thereby providing more opportunities for playersmore opportunities for players

•Additionally, improvement in connections will improve the standard and quality of services, thereby gaining trust and confidence of end users

Subscriber Base mn

a

Urban SubscribersRural Subscribers

Total Internet Subscribers – India

b

c

d

e

f


f

0

2015e2014e2013e2012e20112010

SAMPLE New players in the market can largely benefit from the rural market in India

•The healthcare infrastructure prevailing, especially in the rural parts of India is weak, unreliable and faces acute shortage of proper healthcare professionals

• It is this opportunity gap which can be effectively targeted by new entrants in the market can establish a stronger footholdfoothold

•Below listed are the details of health infrastructure prevailing in rural India:

Rural Healthcare Infrastructure

Sub Centres Primary Health Centres Community Health Centres


SAMPLE Rural Health Infrastructure ‐ Coverage

Average Rural Population

Category Norms Present coverage

Sub Centre xxx Xxx

Primary Health Centre Xxx Xxx

Community Health Centre Xxx Xxx

Average Rural AreaAverage Rural Area

Category Present coverage (Sq. Km)

Sub Centre Xxx

P i H l h C XPrimary Health Centre Xxx

Community Health Centre Xxx

Average No. of VillagesAverage No. of Villages

Category Present coverage

Sub Centre Xxx

Primary Health Centre Xxx


Primary Health Centre Xxx

Community Health Centre Xxx

SAMPLE Rural Infrastructure – In Position (x/x)

State/ UTPopulation (2011) Health Infrastructure (Established 2007‐12) Health Infrastructure (Functional)

Total Rural X Y Z X Y Z

Xxx 84665533 56311788 12522 1624 281 12522 1624 281

xxx 1382611 1069165 286 97 48 286 97 48xxx 1382611 1069165 286 97 48 286 97 48

xxx 31169272 26780516 4604 938 108 4604 938 108

xxx 103804637 92075028 9696 1863 70 9696 1863 70

xxx 25540196 19603658 5076 741 148 5076 741 148

xxx 1457723 551414 175 19 5 175 19 5

xxx 60383628 34670817 7274 1123 305 7274 1123 305

xxx 25353081 16531493 2508 444 107 2508 444 107

xxx 6856509 6167805 2067 453 76 2067 453 76

xxx 12548926 9134820 1907 397 83 1907 397 83

xxx 32966238 25036946 3958 330 188 3958 330 188

xxx 61130704 37552529 8870 2310 180 8870 2310 180

33387677 17455506 4575 809 224 4575 809 224xxx 33387677 17455506 4575 809 224 4575 809 224

xxx 72597565 52537899 8869 1156 333 8869 1156 333

xxx 112372972 61545441 10580 1809 365 10580 1809 365

xxx 2721756 1899624 420 80 16 420 80 16


xxx 2964007 2368971 405 109 29 405 109 29

xxx 1091014 529037 370 57 9 370 57 9

Major Public Companies ‐ Summary

2,500

3,000

Net Profit/Loss

Size of the Bubble represents Market Capitalization in INR bn

1,500

2,000

SAMPLE500

1,000

bbb

SAMPLE ‐500

0 xxx

ccc

‐1,000

‐2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000

Total income

cccbbbaaa


Note: All figures are in INR mn and are based on the latest financials available

SAMPLE Public: Foreign Company – Player A (1/3)

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Gurgaon

Products and Services

Ticker Symbol

Stock ExchangeIndia Office

Key People


Category Products/Services

N D i tiName Designation


Note: The list of products and services is not exhaustive


i i l S h K iFinancial Snapshot Key Ratios

Net Profit/LossTotal Income79418.1

54353.844877 7

52366.160000

80000

6000

8000

ProfitINR mn

RevenueINR mn Particulars

y‐o‐y change (2011‐10)

2011 2010 2009 2008

Profitability RatiosOperating Margin 2.83 11.33% 8.50% 8.96% 10.49%

44877.7

0

20000

40000

0

2000

4000

2011201020092008

Net Margin 3.46 9.07% 5.61% 5.16% 7.03%

Profit Before Tax Margin 3.08 9.84% 6.75% 6.99% 9.06%

Return on Equity 4.09 9.91% 5.82% 4.73% 7.82%

Return on Capital Employed 3.20 11.41% 8.21% 7.58% 10.62%

Return on Working Capital 10.44 22.85% 12.41% 10.63% 19.73%

Return on Assets 2.94 7.36% 4.42% 3.60% 5.92%

Financial Summary

• The company incurred a net profit of INR 7207 mn in FY 2011, as compared to net profit of INR 3051.4 mn in FY 2010

• The company reported total income of INR 79418.1 mn in FY 2011, as compared to INR 54353 8 mn in FY 2010

Return on Fixed Assets 42.43 104.43% 62.01% 61.39% 97.93%

Cost RatiosOperating costs (% of Sales) ‐2.83 88.67% 91.50% 91.04% 89.43%

Administration costs (% of Sales)

‐3.00 34.56% 37.57% 35.05% 34.01%

Interest costs (% of Sales) ‐0.01 0.00% 0.01% 0.00% 0.00%as compared to INR 54353.8 mn in FY 2010

• The company earned an operating margin of 11.33 per cent in FY 2011, an increase of 2.83 percentage points over FY 2010

• The company reported debt to equity ratio of 0.35 in FY 2011, a decrease of 9.30 per cent over FY 2010

Interest costs (% of Sales) % % % %

Liquidity RatiosCurrent Ratio ‐9.39% 2.65 2.93 2.93 2.79

Cash Ratio ‐12.26% 1.65 1.88 1.93 1.53

Leverage RatiosDebt to Equity Ratio 9.30% 0.35 0.32 0.32 0.32

b i l iKey Financial Performance Indicators

Indicators Value (dd/mm/2012)Market Capitalization (INR mn)* 102732.3

Total Enterprise Value (INR mn)* 71473.4EPS (INR)

Debt to Capital Ratio N.A. 0.00 0.00 0.00 0.00

Interest Coverage Ratio N.A. N.A. 624.33 N.A. N.A.

Efficiency RatiosFixed Asset Turnover 4.14% 11.50 11.04 11.90 13.83

Asset Turnover 2.97% 0.81 0.79 0.70 0.84

Current Asset Turnover 7.76% 1.57 1.46 1.36 1.79


EPS (INR) 0.65PE Ratio (Absolute) 16.08

Improved Decline

Working Capital Turnover 13.88% 2.52 2.21 2.06 2.79

Capital Employed Turnover 5.27% 1.09 1.04 0.92 1.10

* Figures are taken as on 2nd of Jul, 2012


Key Business Segments Key Geographic Segments

100%79,375

100%

cbaCommunications Equipment

The company has been

0%

50%

100%

26% 25% 25% 25%

0%

50%

100%

24%

51%

21%

54%

20%

56%

17%

57%

The company has been operating in the

communications equipment segment since 2008

Key Information

0%2011

0%2011201020092008

Description Details

Overview • xxx

Product Portfolio • xxxProduct Portfolio xxx


Note: Business Segments and Geographic Segments are based on total revenues

Major Private Companies ‐ Summary

1,500

2,000

Net Profit/Loss

Size of the Bubble represents Total Assets in INR mn

500

1,000

1,500AAA

SAMPLE 0

500

DDDCCC

BBB

‐1,000

‐500EEE

‐1,500

‐2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000

Total Income

EEEDDDCCCBBBAAA


Note: All figures are in INR mn and are based on the latest financials available

SAMPLE Private: Domestic Company – Player B (1/2)

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.


Website

Year of Incorporation Hyderabad Head Office

Key People


Category Products/Services

N D i tiName Designation


Note: The list of products and services is not exhaustive

SAMPLE Private: Domestic Company – Player B (2/2)

Business Highlights

Description News

Overview • xxx

Services • xxx


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Market Research Report : Telemedicine Market in India 2012

Health & Medicine

Transcript of Market Research Report : Telemedicine Market in India 2012