The Uprising Indian Hospital and Medical Equipment Industry

Hospital and medical equipment is the major sector in the Indian context, both as an area of study and at the health policy level. This article presents qualitative and quantitative information on this booming biz and the opportunities, the sector is offering.

According to an annual report from India Semiconductor Association,''Hospital and Medical devices market ranks among top 20 in the world and is currently the fourth largest in Asia.”

The medical devices section is anticipated to grow at an unprecedented rate in the next few years. The trend of higher adoption of health insurance is expected to further increase the overall demand of healthcare devices across the country.

Size of the industry

The Indian medical equipment industry is expected to grow to around $ 5.8 billion by 2014 and $ 7.8 billion by 2016.The home grown medical devices suppliers in India are playing a vital role in overall revival of the sector.

Factors driving the industry:

Five key factors are currently driving active participation in healthcare devices:

• Growing population
  Population growth of 1.7 % per annum for the next 5 years will result in a need for approx 30,000 new beds every year.
  
• Increasing income
  The no. of houses with income more than Rs 2 lacs per annum is probably to increase from 95 million (8 % of population) to 404 million (32 % of population) by 2015.
• Rising insurance penetration
  Private medical insurance penetration is increasing on a continuous basis and there is a jump in medical equipment sales.
• Increasing "lifestyle" diseases
  Diabetes, Cardiac ailments, and the like are resulting in an increased requirement of tertiary care beds.
• Increase in the no. of senior citizens
  Senior citizens (around 4 per cent of population) constitute around 20 % of patients at hospitals.

These industry drivers are likely to result in an annual increase of 10-12 % in the size of the healthcare delivery market in the next 5 years.

Market entry strategy:

Through Distributors

Distribution networks in India medical equipment market are extremely layered, dense and difficult to enter without experience and connections. Thus, it is recommended to find hospital equipment distributors or you can set up a joint venture. It is advised not to jump in and set up your own business at first.

Through Franchising

As a franchisee of medical devices, you have the backup of the whole organization that has exercised an appreciable amount of effort to make a reputed name for itself. You can look on one or more online franchise websites to figure out if franchisors are offering this opportunity or not and whether it is worth considering.

Through Sales Persons

The healthcare devices sub-niche is a superior way to take a start in the medical supply business venture. It has many advantages, one is- you do not need to establish a repute for your products and yourself, as you will likely be selling products which are already known to their respective customers. To start this business, you need to-

• Determine a niche for your medical equipment sales company
• A temperature controlled environment (warehouse free of dirt, dust, pets and sunlight)
• Approvals from health department

You can also work as an independent sales agent in hospital supplies business too. The returns are really high here.

This is a profitable small-scale venture to get into if you have that entrepreneurial spirit. Do you have? If yes, then start grabbing the opportunities.

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