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'India- A
$300-m Medical Device Market'
( Abstracted from an Interview
with Andreas Wente, CEO, Philips Medical Systems, Asia pacific )
About the size of Indian
Market for medical equipment.
We estimate the market at $ 280
to $ 300 million. The market growth is outpacing many other countries in Asia as
well as Europe and even the United States. We expect this growth rate to
continue for the next 2-3 years at least.
The factors that make India an
attractive market.
To start with, India's middle
class - around 300 million, this is bigger than the population of most
countries. This middle class is getting more affluent and able to spend on
diagnostics. Again, a vast population means that demand for good, high quality
medical care will always be high. Secondly, private players in the healthcare
industry are investing into equipment, people and processes. We are already
seeing enquiries from these private players. Thirdly, there is a large class of
people getting older as well. All this means demand for healthcare will rise,
and with it, the need for good medical diagnostics. Fourth, we observe medical
tourism rising in India as well, for which the latest medical devices will be
become necessity.
About the medical systems
division of Philips in India.
Philips has been moving steadily
towards a HLT positioning - Healthcare, Lifestyle and Technology company. Even
though in India we are still seen as a consumer electronics company, the focus
is now very clearly on being an HLT company. We will remain in the high-end
consumer electronics only and in five years from now, we would be known in India
as an HLT company as well. The numbers in India also show the role that Philips
Medical Systems now plays in India. The medical device market has one of the
highest growths visible over 10% a year.
In India, Philips now holds
around 65% market share in high-end patient monitoring systems, 45% in
Cardio-vascular systems, and 19% in high-end magnetic resonance systems. The
focus on HLT can be seen from the manner in which our revenues have moved.
Philips is a €30 billion company, and in less than five years medical systems
already accounts over €7 billion, or nearly 20% of the top line. Acquisition
have played a role, we have invested over $5 billion in acquisition in the
medical equipment line.
Asia Pacific will continue to be
a key growth engine. GDP growth of around 6% per annum excluding Japan (or 3.5%
including Japan) in the next five years is expected, growth in China is expected
to be 8% a year. The swift transformation from a rural to urban population will
mean an additional 150-200 cities of over on million population. Some of these
are mega cities with over five million population.
Project DISHA , (distance
healthcare advancement)
Project DISHA (distance
healthcare advancement) is a partnership initiative with ISRO, Apollo Hospitals
and DHAN, an NGO. Our van, with multi-modalities (like CT scanners, x-rays and
so on) has remote connectivity via ISRO's satellite link to Apollo Hospital
doctors. This van will tour rural India bringing medical diagnostics to people
previously outside modern healthcare systems. However, challenges do remain -
satellite connections break in some areas, and so on, but we are working on
resolving them.
Ref : The Economic Times dated
December 17, 2005.
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