INDIAN HEALTHCARE INDUSTRY
The Indian healthcare industry was estimated at USD 40 billion in 2010 is expected to reach USD 280 billion by 2020. Large investments by private sector players are likely to contribute significantly to the development of India’s hospital industry, which comprises around 80% of the total market, according to the report ‘Indian Hospital Services Market Outlook’ by consultancy RNCOS. As per estimates by ratings agency Fitch, the sector is poised to grow to USD 100 billion by the year 2015 and further to USD 275.6 billion by 2020.
The Indian healthcare sector comprises the sub-sectors of hospitals, medical infrastructure, medical devices, clinical trials, outsourcing, telemedicine, health insurance and medical equipment. India presently has 0.5 million doctors, 0.9 million nurses and around 1.37 million beds, and has the highest number of medical and nursing colleges, at 303 and 3,904, respectively. In addition, the cost of medical treatment in India is one-tenth that compared to costs in the US and Europe.
The total FDI inflow into India in the hospitals and diagnostics sector for the period April 2000–April 2011 was USD 1 billion, according to the Department for Industrial Policy and Promotion (DIPP), which is part of the Ministry of Commerce and Industry and which is responsible for formulating the FDI policy in the country.
POLICY AND PROMOTION
Various policy and promotion initiatives undertaken by the government for the healthcare sector include:
• National Rural Health Mission (NRHM): National Rural Health Mission (2005–12) was set up in 2005 to ensure provision of effective healthcare to the country’s rural population, especially in Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Himachal Pradesh, Jharkhand, Jammu & Kashmir, Manipur, Mizoram, Meghalaya, Madhya Pradesh, Nagaland, Orissa, Rajasthan, Sikkim, Tripura, Uttaranchal and Uttar Pradesh. As per the Ministry of Health & Family Welfare’s annual report for 2011–12, the initiatives under NRHM have contributed to reducing the maternal mortality rate (MMR), infant mortality rate (IMR) and total fertility rate (TFR). The IMR has declined by 3 points to 47 per 1,000 live births in 2010; the MMR declined from 254 in 2004–06 to 212 in 2009; the TFR declined from 2.9 in 2005 to 2.6 in 2009.
• Automatic FDI: India’s foreign investment policy is very liberal for hospitals. Since January 2000, FDI is permitted up to 100% under the automatic route for the hospitals sector in India. Approval from the Foreign Investment Promotion Board (FIPB) is required only for foreign investors with prior technical collaboration, but allowed up to 100%.
• Priority status: The government also allots priority to proposals of greater social relevance such as hospitals, lifesaving drugs and equipment.
• National Urban Health Mission (NUHM): This mission was set up in 2005 to address the healthcare needs of slum dwellers across urban India; there are nearly 4.26 crore slum dwellers spread across 640 towns and cities in India.
• Rise in funding for the sector: The government has increased the plan allocation for public health spending to USD 5.96 billion in 2011–12 from USD 4.97 billion in 2010–11. Further, the Ministry of Health and Family Welfare has decided to increase health expenditure to 2.5% of GDP by the end of the 12th Five-Year Plan, from the current 1.4%.
• Encouraging policies: The government is also encouraging the growth of this market through policies such as a reduction in import duties on medical equipment, higher depreciation on life-saving medical equipment (40%, up from 25%), and a number of other tax incentives.
• Reduction in customs duty: Customs duty on life-saving equipment has been reduced to 5% from 25%, and is exempted from countervailing duty. Import duty on medical equipment has been reduced to 7.5%.
MAJOR PLAYERS
Many foreign players have entered the Indian healthcare market due to the large market. Some of these foreign players are Pacific Healthcare of Singapore, which is a JV with Vital Healthcare in Hyderabad; Columbia Asia Group, a Seattle-based hospital services company; Wockhardt Hospitals; Steris, a US-based medical equipment company that has set up a wholly-owned arm in India; and Amcare Labs, an affiliate of Johns Hopkins International of the US, which has set up a diagnostic laboratory in Hyderabad through a JV with the Apollo Group.
Besides hospitals, foreign players have also evinced interest in establishing research and development (R&D) centers in India; for example, Abbot Laboratories has announced plans to set up an R&D center in collaboration with Syngene, a contract research subsidiary of Biocon Ltd., to develop nutrition products in India; US pharma company Merck, which is known as MSD outside of the US and Canada, plans to set up a laboratory in New Delhi for developing vaccines at an estimated cost of USD 133.93 million.
In addition, India is now acknowledged as the premier destination for medical tourism, owing to cheaper costs and treatments in the country. According to industry estimates, the market size of medical tourism in India is growing at over 25% annually at over USD 2.5 billion. The segment’s growing business potential prompted the ITC Group to set up the 58-room Fortune Park Lake City business hotel at the Jupiter LifeLine Hospitals complex in Thane, near Mumbai, to serve medical tourists. Most international patients are from Africa, SAARC and West Asia. Patients requiring higher-end tertiary care are now coming to India for cardiology, orthopedics, neurology, oncology and organ transplants. Affordability of treatment is a big pull factor — treatment in India costs just 10% to 20% of what it costs abroad.
SECRET OUTLOOK
The main areas where a number of market opportunities exist for both domestic and foreign players in the Indian healthcare domain include medical tourism, healthcare insurance, telemedicine and medical equipment.
The main drivers of growth in the healthcare sector are India’s booming population; growing middle class; increasing purchasing power; growth in infectious, chronic degenerative and lifestyle diseases; and rising awareness of personal healthcare.
Some of the advantages and opportunity areas for further growth of the sector are:
• A low-cost destination: India provides best-in-class treatment, in some cases at less than one-tenth the cost incurred in the US and Europe.
• Rising medical tourism: The main factors contributing to rising medical tourism in India are presence of a well-educated, English-speaking medical staff, as well as state-of-the art private hospitals and diagnostic facilities.
• Growing economy: With a growing middle class, and rising health awareness and purchasing power, the healthcare insurance sector is poised for strong growth in coming years in India.
• Telemedicine: Growth in the telemedicine sub-sector is taking place due to the need for specialist doctors in rural areas, as most of them live in urban or semi-urban centers of India. Rural areas, roughly with a population of 700 million, can be provided healthcare facilities through telemedicine, with remote diagnosis, and monitoring and treatment of patients via videoconferencing.
• Healthcare infrastructure: Growth in Indian healthcare infrastructure is accompanied by strong demand for medical equipment such as x-ray machines, CT scanners and electrocardiographs, highlighting an opportunity for global players making quality products in this space.
• Rising population: In 2011, India’s population was 1.21 billion and by 2030, India is expected to surpass China as the world’s most populous nation.
INDIAN HERBAL MARKET
Indian herbal market is one of the fastest growing markets and may attain to 14500 crore by 2012. The herbal industry biz potential has revealed that currently the Indian herbal market size is estimated at Rs. 7000 crore and over Rs. 3600 crore of herbal raw materials and medicines are exported by India. The herbal products become very popular now a days and found more application in medicinal treatment across the world. This review article focuses on current status of Indian herbal industry. It also provides an insight on regulation of herbal industry in India.
India has the world’s oldest as well as largest tradition of systems of medicine. The Indian Systems of Medicine includes the systems originated in India as well as outside but got adopted in India in course of time. The various systems are Ayurveda, Siddha, Unani, Homeopathy, Yoga, and Naturopathy. They have become a vital part of the culture and traditions of India. Indian traditional knowledge on herbal medicine and vast plant biodiversity has a great potential in this sector. The codified Indian system of medicine puts to use raw drugs obtained from around 2,400 plant species. The number of raw drugs in trade is still less i.e. 1289 botanicals obtained from 960 plant taxa. The highest proportion of the traded medicinal plant species is used under the Siddha and Ayurvedic system.
Indian herbal market is one of the fastest growing market and may attain to Rs.14, 500 crore (Rs 145,000 million) by 2012 and exports to Rs.9, 000 crore (Rs 90,000 million) with a CAGR of 20% and 25% respectively, according to findings of the Associated Chambers of Commerce and Industry of India (Assocham). The ‘Herbal Industry Biz Potential' has revealed that currently, the Indian herbal market size is estimated at Rs.7000 crore (Rs 70000 mn) and over Rs.3600 crore (Rs 36000 mn) of herbal raw materials and medicines are exported by India. The reasons cited for the unexpected growth comprises setting up of Herbal farm clusters by the government for improving quality of drugs and promotion of exports, doubling the cultivation of medicinal plants by converting existing farmland, continuous focus for R&D on product and process development and effective marketing of herbal products, the study said.
Markets with Present and Projected Demand
Europe - US$ 40 Billion ~ US$ 200 Billion**
North America - US$ 10 Billion ~ US$ 50 Billion**
China - US$ 9 Billion ~ US$ 12 Billion**
India - US$ 3 Billion ~ US$ 6 Billion
Others - US$ 20 Billion ~ US$ 50 Billion**
**[Projected Demand (for 2020)]
INDIAN HERBAL INDUSTRY
As per study commissioned by the Associated Chamber of Commerce and Industry (ASSOCHAM), the herbal products become very popular now a days and found more application in medicinal treatment across the world. The study also revealed that Indian herbal products are more popular among the Indian Diaspora; however, a need is being felt to make them popular among the locals in foreign lands. The recent surge in use of herbal medicines has led to a huge requirement of raw materials by the industry.
The turnover of AYUSH industry is estimated to be more than Rs 8800 crore. The domestic market of Indian systems of medicine & Homeopathy (ISM&H) is of the order of Rs 4000 Crore with a total consumption of all botanicals to a figure of 177000 MT, which is expanding day by day. The total annual turnover of the Ayurvedic drug manufacturing industry is estimated to be around Rs.3, 500 Crore. Besides this, there is also a growing demand for natural products including items of medicinal value/pharmaceuticals, food supplements and cosmetics in both domestic and international markets. India with its diversified biodiversity has a tremendous potential and advantage in this emerging area.
HIGH DEMAND OF SIDDHA & AYURVEDA HERBAL PRODUCTS TO DRIVE INDIAN COSMETIC INDUSTRY
With increased awareness on the harmful effects of chemicals used in cosmetics, the demand for natural cosmetic products has gained tremendous momentum in the past and the trend is expected to continue in future as well. In current scenario, Indian cosmetic industry is full of herbal beauty brands and many cosmetics companies are also launching a new range of herbal products. As per RNCOS research, they found that market for herbal cosmetics will surge in the near future contributing majorly to the growth of cosmetic industry in India.
Indian cosmetics market has been growing at a rapid pace and has outpaced all market dimensions. With the rising beauty concerns among both men and women, the Indian cosmetics sector is expected to expand remarkably in near future. Their research revealed that robust media promotion and rising western culture's influence are the major factors driving the cosmetics sector in India. Furthermore, rising purchasing power and growing fashion consciousness in the country will majorly contribute to the growth of Indian cosmetic market.
The report evaluated the Indian Cosmetics Market by segmenting it into hair care, skin care, oral care, fragrance, and color cosmetics providing detailed analysis and forecast of the Indian cosmetics market. It also provided a comprehensive study on sub-segments, such as shampoo, hair conditioner, hair gel, hair color, face creams/lotions, talcum powder, face wash, tooth paste and powder, tooth brush, and mouth wash. In order to depict a correct picture of the current and future market outlook of the industry, they have also analyzed various established and emerging trends in Indian cosmetics sector. With a view to understand the industry's competitive landscape and present a balanced outlook to the clients, they have also included a section profiling on the major players for each segment along with a SWOT analysis.
The report also facilitates a brief analysis of Hair and Beauty Salon Market, Spa Market and Cosmetics Surgery market, which forms a major part of the Indian cosmetics sector.
INVESTMENT OPPORTUNITIES
- Siddha and Ayurveda Drug manufacturing (nutraceuticals, food supplements, cosmetics and rejuvenates).
- Setting up of specialized treatment centers.
- Medical tourism for curative and rejuvenation treatments
REASONS TO INVEST
India has an unmatched heritage represented by its ancient systems of medicine which are a treasure house of knowledge for both preventive and curative healthcare.
The demand for Siddha medicine and herbal products is surging in India and abroad. India is the second largest exporter of AYUSH and herbal products.
Siddha Medicine and yoga are widely recognized for their holistic approach to health and capability for meeting emerging health challenges. These systems are playing an important role in achieving the national health outcome goals of reducing Maternal Mortality Rate (MMR), Infant Mortality Rate (IMR), malnutrition, and anemia.
Yoga is widely recognized and practiced in Asian as well as western countries. Several yoga centers/studios have been established across the globe during the last 4-5 decades. Yoga is a drug-less system and can be applied as independent modality or as an add-on therapy with other systems. The classical method of yoga originated and propagated in India has its own advantages. The ancient Indian texts have defined the concepts of do’s and don’ts related to dietetics, conduct, activities etc. which are used as natural modalities for prevention of diseases and restoration of health.
According to therapies the treatments of Siddha and Ayurvedic Medicines could be further categorized into following categories such as purgative therapy, emetic therapy, fasting therapy, steam therapy, oleation therapy, physical therapy, solar therapy, blood-letting therapy, yoga therapy, etc.
STATISTICS
India’s wellness market is estimated at INR 490 Billion, and wellness services alone comprise 40% of the market. The sector is dominated by micro, small and medium enterprises, accounting for more than 80% of the enterprises, located in identifiable geographical clusters. The products market is worth about INR 40 Billion with over-the-counter products such as digestives, health food and pain balms, constituting almost 75% the segment. Of the exports, raw medicinal herbs account for INR 11 Billion, medicament's for INR 9.7 Billion, medicinal extracts for INR 1.9 Billion. The biggest markets for Indian herbal products are Western Europe, Russia, USA, Kazakhstan, UAE, Nepal, Ukraine, Japan, Philippines, and Kenya etc. India has 6600 medicinal plants found in the Himalayan and Tamilandu mountain regions, around its coastline, deserts and rain-forest Eco-system. More than 32 Million people are practicing yoga in the USA alone. The demand for yoga across the world is growing exponentially. 100% FDI is permitted in the AYUSH sector.
ABOUT ASUCRE PURE HERBALS
We would like to take this opportunity of introducing Asucre Pure Herbals, located in Chennai, India registered with M.S.M.E, Ministry of Micro, Small & Medium Enterprise (Reg. Number – TN02D0034538). Asucre Pure Herbals is established in the year 2016, as one of the leading trader, supplier and exporter of health care products, health supplements, beauty and personal care, sexual wellness, herbal powders, heart care, Moringa products and among others. Asucre Pure Herbal is a reputed leading supplier & exporter of India’s traditional herbal products, herbal medicines and Vegan Products.
About 30 years of family and professional experience in the traditional medicine, herbalism & vegetarianism has positioned us as a renowned supplier for various leading herbal pharmaceutical companies for the domestic & export markets.
At Asucre Pure Herbals We...
• Personally select each herb for freshness and purity
• Inspect and WHO-G.M.P certify each herb for quality
• Carefully monitor each manufacturing step including milling, encapsulation and bottling of every Nature's wonderland herb and formula.
• Most herbs are available in several forms and sizes.
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