market research report : otc drug market in india 2012
DESCRIPTION
For the complete report, get in touch with us at : [email protected] Over-the-counter drug market in India ranks eleventh in the global OTC market and is expected to reach the ninth position within the next five years. Since Indian patients have a huge tendency for self treatment, the Indian market is characterized by a huge demand for OTC drugs. It is a highly fragmented market with a large number of foreign and domestic players. Rising consumer confidence in OTC products, increasing number of shifts from prescription to OTC drugs, increasing focus on brand building, booming retail growth and changing demographics is helping the market to grow. The Indian Government, on its part has taken initiatives to reduce drug prices, has made certain reforms in the tax structure and has undertaken various other initiatives to promote the OTC market. The market is expected to exhibit steady growth over the next few years. The report begins with the introduction section which offers a brief insight into the major over-the-counter segments. It then moves to the market overview section which provides an insight into the global market and then moves on to the Indian market, highlighting the market size and growth. The top ten OTC brands in both the Indian and the global market, along with the sales figures have been provided. The report also provides individual market sizes for the different segments of the OTC market. An analysis of the drivers explains the factors for growth of the industry including rising consumer confidence in OTC products, increasing number of shifts from prescription to OTC drugs, booming retail growth, increasing focus on brand building, changing demographics and lower price control. The key challenges include low penetration in rural areas, preference of home remedies to OTC products, high competition and time consuming clinical trial procedures The government initiatives section gives analyses the efforts to reduce drug prices, changes in the customs duty structure and the various other initiatives undertaken by the Government. A brief overview of the drug market value chain and drug regulations is presented in the next section. It analyses the pharmaceutical value chain, and focuses on the different stages of clinical trial that a drug must pass through. A snapshot of different regulatory frameworks existing in the Indian pharma industry has been shown. The competition section gives overview of pharmaceutical companies in the country operating in the OTC product industry. Thereafter, the report highlights the features of the major players operating in the market in detail. It includes elaborate profile of the major players in the market along with their financial analysis. Porters Five Forces Analysis has been incorporated for a brief but effective understanding of the market scenario. It also incorporates the recent developments in the OTC drug industry.TRANSCRIPT
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OTC Drug Market IndiaOTC Drug Market ‐ India
June 2012
Executive Summary
Market
India currently ranks eleventh in the global Over‐the‐counter (OTC) drug market
OTC drug market in India is valued at INR XX unit in 20‐‐
The market is expected to grow at a CAGR of m% from 20‐‐ to 20‐‐
Drivers: Rising consumer confidence in OTC products
Challenges: Low penetration in rural areas
Preference of home remedies Switch of prescription drugs to OTC widens growth opportunity of OTC
Increasing focus on brand building
Booming retail growth
Competitive market
Time consuming clinical trial proceduresDrivers and Challenges
Changing demographics
Lower price control
CompetitionPublic Players Private Players
Player 1; Player 2; Player 3; Player 4; Player 5; Player 6; Player 7; Player 8; Player 9; Player 10; Player11
Payer 1; player 2; Player 3; Player 4
2OTC DRUG MARKET IN INDIA 2012.PPTOTC DRUG MARKET IN INDIA 2012.PPT
Global OTC drug market is expected to witness a huge growth over the coming years
•OTC pharmaceutical is one of the largest segments of
the overall pharma market
Global Market – Overview Market Size and Growth
8
INR XX
M%p
• The market has a size of INR A1 unit in 20‐‐ and is
expected to grow at a CAGR of m % from 20‐‐ to 20‐‐
• Cough and cold medicines are the leading contributor in 2
4
6
M%A6A5A4A3A2A1
the global market, comprising almost p% of the total
market
•Major growth is expected to come from the Asia‐Pacific
region, which is the largest contributor to global sales
020‐‐e20‐‐e20‐‐e20‐‐e20‐‐20‐‐
Note: Revenue fluctuations caused due to the changes in exchange rate
region, which is the largest contributor to global sales
and accounts for q% of the global market
• In 20‐‐,pharmacy retail chains formed the major share of
the distribution channel in the global OTC pharma
OTC Drug Distribution – 20‐‐
A% B
A
market, accounting for r% of the total value
• A large number of drugs are shifting from prescription
to OTC, thus drives the market extensively C%
B%
C
3OTC DRUG MARKET IN INDIA 2012.PPT
Increasing amount of consumer confidence in OTC products is driving the Indian market
•Over‐the‐counter drug market in India has a huge
potential
Indian Market – Overview Market Size and Growth
200
INR YY
y% X6potential
• Indian OTC market had a size of INR X bn in 20‐‐ and
is expected to grow at a CAGR of y% from 20‐‐ to 20‐‐
• India currently ranks eleventh in the global OTC 50
100
150
y% X6X5
X4X3X2X1
• India currently ranks eleventh in the global OTC
market and it is estimated that it will reach ninth
position within next five years
• Sales channels for OTC drugs are extensive, as they OTC Drug Distribution – 20‐‐
020‐‐e20‐‐e20‐‐e20‐‐e20‐‐20‐‐
Sa es c a e s o O C d ugs a e e te s e, as t ey
do not require a drug license and can be sold by non
chemists as well
• Vitamins and minerals segments are the most D4%
D3%
D2% D3
D2
D1
popular segments, with a share of around Y%
D1%
D4
4OTC DRUG MARKET IN INDIA 2012.PPT
Source:
Drivers & Challenges – Summary
D iDrivers
Rising consumer confidence in OTC products
Switch of prescription drugs to OTC
Challenges
Low penetration in rural areas
p p gwidens growth opportunity of OTC
Booming retail growth
Preference of home remedies
Competitive market
Ti i li i l t i lIncreasing focus on brand building
Changing demographics
Time consuming clinical trial procedures
Low price control
5OTC DRUG MARKET IN INDIA 2012.PPT
Government Initiatives – Summary
Reduction in drug prices
GovernmentI iti tiInitiatives
Other Initiatives Changes in tax structureOther Initiatives Changes in tax structure
6OTC DRUG MARKET IN INDIA 2012.PPT
Major Companies – Summary
4,000
Net Profit(INR mn)
Size of the Bubble represents Total Assets in INR units
3,000
3,500 INR units
1 500
2,000
2,500
500
1,000
1,500
0
500
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000
Revenue(INR mn)
7OTC DRUG MARKET IN INDIA 2012.PPT
Company CCompany BCompany A
Public: Domestic Company – Company A (1/4)
Company Information Offices and Centres – India
Corporate AddressCompany AAddress Line 1Address Line 2
Tel No. +91 xx xxxxxxxx
Fax No. +91 xx xxxxxxxx
Website www.a.com
Year of Incorporation 19
X
Year of Incorporation 19‐‐
Ticker Symbol xxx
Stock Exchange NNN
Key PeopleProducts and Services
N D i i
Head Office
Category Products/Services
Name Designation
Person A Chairman, M.D.
Person B GM of Finance
Person c President‐ OTC Division
Healthcare Management
Nutritional drinks, pharmaceuticals, OTC
F&B Drinks and cola
8OTC DRUG MARKET IN INDIA 2012.PPT
Person D Senior V.P. Sales & Marketing
OTC DRUG MARKET IN INDIA 2012.PPT
K ii i l S h
Public: Domestic Company – Company A (2/4)
Key Ratios
Net Profit / Loss
Total Income
20
INR units INR units
2.0
1 5qr
st
Particulars y‐o‐y change (20‐‐ ‐ ‐‐)
20‐‐ 20‐‐ 20‐‐ 20‐‐
Profitability RatiosOperating Margin
Financial Snapshot
‐20
0
‐40
1.5
1.0
0.5
0.020‐‐
p
20‐‐
o
20‐‐
n
20‐‐
m
Net MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on Assets
Financial Summary
• The company earned a net profit of INR q units in FY 20‐‐, as compared to net profit of INR r units in FY 20‐‐
• The company reported total income of INR p units in FY 20‐‐, registering an increase of t per cent over FY 20
Return on Fixed Assets
Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)
Interest costs (% of Sales)registering an increase of t per cent over FY 20‐‐
• The company earned an operating margin of f per cent in FY 20‐‐, a decrease of g percentage points over FY 20‐‐
• The company reported debt to equity ratio of h in FY 20‐‐, an increase of z per cent over FY 20‐‐
Interest costs (% of Sales)
Liquidity RatiosCurrent RatioCash Ratio
Leverage RatiosDebt to Equity Ratio
b i l iKey Financial Performance Indicators
Indicators Value (dd/mm/20‐‐)Market Capitalization (INR)
Total Enterprise Value (INR)
Debt to Capital RatioInterest Coverage Ratio
Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset Turnover
9OTC DRUG MARKET IN INDIA 2012.PPT
Working Capital TurnoverCapital Employed Turnover
Improved Decline
OTC DRUG MARKET IN INDIA 2012.PPT
Public: Domestic Company – Company A (3/4)
Key Business Segments Key Geographic Segments
zyx
80
100100% A
z y
x
z y
x
z y
x
z y
x
0
20
40
60
80
Company A has been solely operating in India
Business Highlights
20‐‐20‐‐20‐‐20‐‐0
20‐‐
i iDescription News
Overview• Company A is an integrated research based company that produces a wide range of generic medicines• Serves customers in over 100 countries with manufacturing facilities in several countries
OTC • Has been operating in the OTC industry for the past 12 years
Key Initiatives • Is making consistent effort for continual improvement in rural areas with respect to accessibility of medicines
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OTC P d t
Public: Domestic Company – Company A (4/4)
Product Category OTC Products
Pain Management Product A, Product B
OTC Products
Congestion Management
Product C, Product D
Healthcare Management
Product E, Product F
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Thank you for the attentionThe OTC Drug Market – India report is part of Research on India’s Healthcare Series.For more detailed information or customized research requirements please contact:
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12OTC DRUG MARKET IN INDIA 2012.PPT
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