India is one of the world’s most lucrative healthcare markets, and is expanding rapidly. Omron India, the Indian arm of a Japanese company offering control and sensing technology sees immense scope for the medical technology and device market to thrive in India. Currently, the company is moving rapidly to reinforce operations in India by increasing the number of industrial automation and healthcare equipment sales bases and boosting the number of system engineers and sales personnel. Shinya Tomoda, Managing Director, Asia Pacific Omron Healthcare shares his view on the Indian market and the company’s plans for India in an interaction with Raelene Kambli
What is your perspective about the Indian medical device industry? Where does the industry stand on the global map?
| Shinya Tomoda |
Globally the medical technologies used in devices are very much advanced, even at grass root levels. However, India has also leapfrogged in this arena. Along with the rapid growth of the Indian economy, the potential demand for such medical technologies is steadily growing.
Take cue from recent industry studies – The medical technology equipment market in India is pegged to touch $5 billion (around Rs 23,300 crore) by 2012, growing at an annual rate of nearly 15 per cent, on rising demand from urban customers. According to the report, ‘Medical Technology Industry in India’, by industry chamber CII and consulting firm Deloitte, the medical technology equipment market in India was valued at $2.76 billion in 2008, a growth of about 14 per cent over 2007. According to Associated Chambers of Commerce and Industry of India (ASSOCHAM), the size of Indian medical equipment supplies industry is likely to touch $7 billion by 2012. In its paper on healthcare services, the ASSOCHAM has stated that the current domestic medical equipment suppliers size is estimated around $3 billion.
The projections are based on the fact that medical equipment supplies have already started stretching their plans since a substantial number of healthcare facilities are likely to be added in metros and more so in satellite town adjoining the metros since such townships are being promoted for industrial development. Thus, we can safely say that there has been exponential growth in the healthcare field in totality and medical device industry per say in India.
Better information leads to better decisions. This is true for every industry, and healthcare is no exception. Now, Indians are sitting up and putting a lot of emphasis on their health. Better connected research represented by national and international studies, better diagnostic devices and healthcare facilities coupled with better connected care represented by public health efforts as well as individual care practices are the hallmark of globalisation and India is not far behind.
What is the most exciting development on the horizon?
Steering wellness through technology is catching up. Technology is the enabler for empowering patients to take better care of their health. We can also accelerate early diagnosis for earlier detection and treatment of diseases. Advances in the diagnostic facilities, particularly non-invasive ones are leading to new treatments that improve health outcomes and quality of life with remarkable ease and convenience. Diagnostic technologies and disease monitoring are hence two big areas which will continue to see innovation in healthcare management.
We recently launched our blood glucose monitor and now we have a complete range of healthcare products. With this, our target for FY12 is $14 million in India. We will do our best to increase recognition and penetration in India.
Tell us about Omron’s contribution in the Indian healthcare sector? How has the company positioned itself in the healthcare sector?
Omron is a major supplier of home-use healthcare devices and talks with big hospitals are on to supply our products. We plan to better understand our client needs in the Indian market and build new products or services that will help healthcare organisations have better information. This will lead to better decisions and healthcare outcomes. We are keen to contribute to areas such as patient safety, increasing quality and efficiency of care, and making it affordable to a larger section of society.
What is your current market share in the industry? How do you plan to penetrate and increase your share?
We have a current market share of 57 per cent (blood pressure monitors in unit base) and we aim to achieve growth as quickly as possible by expanding our business in emerging markets- the explosive growth of which is now driving the global economy. India has sustained a 30 per cent growth over the last three years.
We have managed to penetrate the market exceptionally well. The superior technology and competent pricing has helped us to achieve this position.
What are the innovative products and services that Omron offers? What growth potential do you foresee for Omron in the medical device market in India with your new line of products?
Omron’s propriety sensing and control technologies allow conversion of gathered data into valuable information for people and machines thereby providing pioneering technologies, products and services that can meet the social needs of the future
Our Omron glucose monitor completes our range of healthcare products and through these months, we will do our best to increase recognition and penetration in India. With 50 million diabetic patients and an equal number of people estimated to be diabetes-prone, India is emerging as a major market for blood glucose monitoring solutions. The concept of self blood glucose monitoring was introduced in India only a few years back and the industry has already grown to over Rs 150 crore, with a growth rate of 15-18 per cent in the last three years. However, out of the 50 million diabetics, only half a million currently check blood glucose levels on a regular basis using these solutions, say industry sources. In the US, people having the disease check their blood glucose levels even up to six times a day, whereas in India, the patients don’t even check their blood glucose levels on a regular basis unless directed by their doctor. Studies say that diabetes induced death can be brought down by 52 per cent if the insulin levels in the body are regularly monitored and controlled.
Some of our other products include blood pressure monitor, nebuliser, body fat monitor, pedometer, thermometer and blood glucose monitor. Also, we have the most comprehensive healthcare portfolio and our products are priced very economically as compared to the competition. For blood pressure monitor alone in India, we owned 57 per cent market share. We are bringing a number of new technologies to India. Some of them are: body composition monitors which accurately analyse body fat and muscle conditions.
What strategies have you adopted for achieving efficiency and a competitive advantage?
Our group brand strategy is to promote the Omron brand through mass media advertising, sponsorship of marathon events, and business-related marketing.
To connect with masses directly, we have been sponsoring marathons since 2009. Besides, we introduced our brand and healthcare devices at booths alongside these marathons. Free health checks were also conducted at these booths. Our booths received an overwhelming footfall of 40,000 people. Around 30,000 people tried out our healthcare equipment, allowing us to make a direct appeal to consumers about our products.
We have been conducting seminars to demonstrate to heads of pharmacies on how to use our devices, augment their understanding and disseminate knowledge on the appropriate role of instruments in health management. We have collaborated with the Indian Society of Hypertension to support a large scale clinical study involving leading doctors from Japan, Canada and India. Omron also provides digital blood pressure monitors and other measurement equipment to be used in clinical study.
We have collaborated with Farhan Akhtar to drive awareness on significance of health and care.
How different are the demands of the Indian healthcare market as compared to other countries with respect to your products?
Singapore and Hong Kong are developed countries and people are aware of the importance of healthcare. India is an emerging country where there is a lot of emphasis on healthcare and education on healthcare is of importance. In addition, the potential in these emerging markets is huge: hypertension – 130 million; obese – 100 million; diabetes – 50 million; asthma – 50 million.
Thus, people in India are sitting up and putting emphasis on their health now, and we like to contribute to the Indian society on prevention and treatment by providing devices of monitoring, treatment and medical information. We are also educating and placing emphasis that with Omron healthcare, it is easy and convenient to start monitoring your own health at home.
Are there any investment plans for the Indian healthcare industry? If yes, what are the kind of investments that you are looking for?
Our products are currently offered through ‘over the counter’ channel. Omron also conducts seminars for demonstrating to heads of pharmacies on how to use our devices, augment their understanding and disseminate knowledge on the appropriate role of instruments in health management. We have also collaborated with the Indian Society of Hypertension to support a large scale clinical study involving leading doctors from Japan, Canada and India. Omron provided the medical personnel with digital blood pressure monitors and other measurement equipment used in clinical study.
What are Omron’s expansion plans in the Indian market? Any new merger/ acquisition in the pipeline?
In the coming years, we look forward to enhance our client base and increase our presence. Omron Corporation, is looking at over three-fold increase in sales here to touch $43 million (over Rs 235 crore) by end of FY15, riding on new product launches and network expansion. The sales target would be achieved by increasing the number of retail outlets across the country from the current 15,000 to 33,900 by the end of FY2014-15.
We are also planning to extend our reach to Tier-II cities as a part of our growth strategy in India.