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Market Research Report: Pharmacy Retail Market in India 2015 - Sample
Market Research Report: Pharmacy Retail Market in India 2015 - Sample
July 2015
Executive Summary
Market
Drivers &
Challenges
Trends
The Indian pharmacy retail market is currently valued at INR x bn and is estimated to reach
INR y bn by 2019
The market is distinctly fragmented into organized and unorganized players with ~x% of the
market being dominated by the unorganized segment in 2014
Drivers
Challenges
Loyalty Schemes
Value Added Services
Entry of Government in Pharmacy
Retailing
Organized Retailers Starting Pharmacy
Chains
Entry of Private Labels
Rural Expansion
Health Insurance Plans made available in
pharmacies
Tracking of Counterfeit Drugs
Key Players
Competitive
Landscape
Company A
Company B
Company C
Company D
Company E
Company F
Macroeconomic Indicators
Introduction
Market Overview
Drivers & Challenges
Key Trends
Government Regulations
Industry Association
Technology Adoption
Competitive Landscape
Strategic Insights
Appendix
PHARMACY RETAIL MARKET IN INDIA 2015.PPT
%
Per Annum
INR tn
2011-12
x
x
x
x
x
2012-13
2011-12
2012-13
N.B.:
2012-13 encompasses
figure for Apr2013-14
Nov 2012
2014-15
FDI: Annual
x
2013-14
x
INR bn
x
2014-15
x
2012-13
2013-14
x
Min
Max
x
2010-11
2011-12
tn
x
x
x
2013
2014
2015e
x
x
0
2016e
Pharmaceutical
Medical Devices
x
x
Diagnostics
Health Insurance
Others
INR x bn
INR x bn
INR x bn
Medicine
Medical Diagnostics
Private healthcare spending is highly disparate for top x% and bottom x% population strata, which gets even more
pronounced in cases of medical diagnostics and hospitalization
According to recent statistics, income elasticity of demand for healthcare is over x
N.B.: Data as per NSSO 2011
PHARMACY RETAIL MARKET IN INDIA 2015.PPT
INR bn
x
x
x
x
0
2013
Pharmaceutical Contribution
FMCG Contribution
In India, pharmacies are the dominant distribution channels generating ~x % of overall pharmaceutical sales
INR bn
INR bn
x
x
x
x
x
x
x
0
x
x
x
x
x
x
x
0
2013
2013
Drivers
Growth in Pharmaceuticals Sector
Challenges
Fragmented Industry
Counterfeit Drugs
Consumer Attitude
Attractive Margins
10
Impact
XX
XX
XX
XX
XX
INR bn
x
x
x
15.7%
2013
2014
2015e
x
0
2016e
2017e
2018e
2019e
11
Impact
The disease profile in India is changing from infectious diseases to lifestyle-based diseases,
which requires more intensive care
The incidences of lifestyle-based diseases has increased with changing lifestyle
India is home to a large number of heart disease, stroke, cancer, diabetes and respiratory infection affected
patients
Stress, sedentary lifestyles and unhealthy food habits are key reasons for the growing number of patients
who suffer from lifestyle-based ailments that are of long duration and slow progression
This will entail medication on an ongoing basis, which in turn will make prescription-based
medicines mandatory for expansion of the pharmacy retail business in India
Diabetes Patient India
mn
x
x
x
x
x
x
0
2012 2013e 2014e 2015e 2016e 2017e 2018e
Male
Femalee
2013
2020e
As of Apr 2015, Chronic diseases account for ~x% of all deaths in India
These diseases will cost India ~INR x tn between 2012 and 2030 in terms of economic output
PHARMACY RETAIL MARKET IN INDIA 2015.PPT
12
Impact
Pharmacy retailing is a capital intensive business proposition and stands out as a catchment
specific business
Pharmacy Retail Business A Catchment Specific Business
Success Involves Proximity To
Hospital area
Commercial area
to breakeven
PHARMACY RETAIL MARKET IN INDIA 2015.PPT
13
Key Trends
Loyalty Schemes
Value Added Services
Entry of Government in Pharmacy Retailing
Organized Retailers Starting Pharmacy Chains
Trends `
Entry of Private Labels
Rural Expansion
Health Insurance Plans Made Available in Pharmacies
14
Company A
XX
XX
XX
XX
Company B
XX
XX
XX
Attractive Pricing Private Label Brands
X
Currently, Organized Pharmacy Retailers private label portfolio comprises X% of their overall products
PHARMACY RETAIL MARKET IN INDIA 2015.PPT
15
Licence Procurement
Role
of
Government
Foreign Direct
Investment
Ownership Restrictions
16
There are plans to open new shops for members that will
be inter-connected electronically, using common branding
XX
XX
XX
XX
17
Customer Relationship
Management
Technology
Trends
Supply Chain
Management
Enterprise Resource
Planning
18
Impact
X
Impact
X
Impact
X
Competitive Rivalry
Impact
X
Threat of Substitutes
X
19
2014
2013
x
x
x
x
0
Emami Frank Ross Ltd.
RWL Healthworld
x
x
x
Emami Frank
Ross Ltd.
RWL Healthworld
The Himalaya
Drug Company
XX
XX
XX
20
Corporate Address
XX
Tel No.
XX
Fax No.
XX
Website
XX
Year of Incorporation
XX
Ticker Symbol
XX
Stock Exchange
XX
Head Office
Chennai
Products/Services
XX
XX
XX
XX
Key People
Name
Designation
XX
XX
XX
XX
XX
XX
XX
XX
21
INR bn
60
40
20
1.84
26.05
2.19
31.48
Key Ratios
Net Profit / Loss
3.04
37.99
INR bn
3.17
43.84
4
2
0
Particulars
2011
2012
2013
2014
Gross Margin %
30.6%
31.4%
31.7%
31.2%
7.10%
7.00%
8.00%
7.20%
EBITDA Margin %
16.20%
16.50%
17.00%
15.30%
Profitability Ratios
EBITA Margin %
0.13
0.13
0.13
0.12
EBIT Margin %
12.60%
12.70%
13.20%
11.60%
Financial Summary
Return on Assets %
6.00%
6.50%
7.10%
6.20%
7.5%
8.0%
8.7%
7.7%
Return on Equity %
10.1%
9.8%
11.5%
11.0%
Current Ratio
1.39
1.46
2.12
1.88
Cash Ratio
0.96
1.04
1.60
1.20
Total Debt/Equity
0.50
0.32
0.41
0.45
0.33
0.24
0.29
0.31
Interest Coverage
4.45
4.95
5.51
4.74
2011
2012
2013
2014
Financial Summary
Liquidity Ratios
Leverage Ratios
Efficiency Ratios
Indicators
Value (08/07/2015)
0.76
0.82
0.86
0.86
181,328.8
194,967.9
N.A.
N.A.
1.55
1.63
1.64
1.58
Accounts Receivable
Turnover
9.95
9.16
8.76
8.83
Inventory Turnover
12.06
12.34
12.65
12.14
22
Others
100%
50%
0%
India
100%
72.7%
70.0%
67.4%
68.9%
50%
2011
2012
2013
2014
100%
0%
2014
Business Highlights
Description
News
Overview
XX
Pharmacy Retail
XX
Acquisition
XX
Future Plans
XX
PHARMACY RETAIL MARKET IN INDIA 2015.PPT
23
24
Tel No.
Fax No.
Website
Year of Incorporation
Kolkata
Products/Services
Head Office
Key People
Name
Designation
25
Ownership Structure
No. of Shares held
Bodies corporate
Directors or relatives of directors
82,739
78,400
52,500
39,000
36,000
3,449,861
Total
26.5%
0.4%
3,738,500
73.1%
26
Key Ratios
Total Revenue
Net Profit/Loss
INR mn
3000
INR mn
45.0
6.8
2000
1000
Particulars
1582.9
1848.7
1.6
1997.6
-21.4
2513.9
50
-50
2011
2012
2013
2014
2011
2012
2013
2014
N.A.
N.A
N.A
N.A
2.84%
0.37%
0.08%
-0.85%
EBITDA Margin %
18.25%
15.39%
15.39%
11.36%
N.A.
N.A
N.A
N.A
EBIT Margin %
16.95%
13.94%
13.80%
9.64%
Return on Assets %
5.16%
0.54%
0.13%
-1.44%
33.90%
NA
61.46%
NA
Return on Equity %
32.51%
10.63%
2.49%
-48.60%
Current Ratio
2.14
0.99
1.28
0.95
Cash Ratio
0.47
0.10
0.25
0.12
Profitability Ratios
Gross Margin %
EBITA Margin %
Liquidity Ratios
Financial Summary
Company incurred a net loss of INR 21.4 mn in FY 2014, as
compared to net profit of INR 1.6 mn in FY 2013
Leverage Ratios
Total Debt/Equity
4.29
14.51
14.13
21.99
1.66
NA
4.45
NA
Interest Coverage
4.79
2.28
2.19
1.71
1.97
1.74
1.58
1.82
6.19
5.97
5.86
6.11
Accounts Receivable
Turnover
25.69
32.87
32.05
32.63
Inventory Turnover
3.01
2.13
2.63
2.69
Efficiency Ratios
27
News
Overview
XX
Pharmacy Retail
XX
Future Plans
XX
28
XX
XX
XX
XX
29
30