Suresh Vazirani, Founder, Transasia Bio-Medicals shares his views on the Indian In Vitro-diagnostic market (IVD) and talks about how his company has successfully earned a major market share within the emerging IVD markets of the world, in a conversation with Raelene Kambli
Give us an overview of the Indian IVD market?
The Indian IVD is still nascent and has picked up momentum in the last few years. Even today, only 30 per cent of India’s population go for blood tests. This shows that there is a huge opportunity for the IVD segment in India. Also, the focus for these players should be on prevention of diseases.
Do you see a lack of access to diagnostic services in the rural areas?
There is a huge gap in terms of availability of diagnostic services in the rural areas. People have to travel upto 100-200 kms to get to a diagnostic centre. Therefore, there is a need to venture into these smaller markets to create more access. We at Transasia have entered towns and soon hope to enter the rural areas as well.
Where does India stand in comparison to other emerging markets?
If you compare India with the other emerging markets such as Russia, Brazil and South Africa, the spending on diagnostics is lowest in India. We stand at the bottom 10 per cent as our per capita spending on diagnostic is less as compared with other countries. As I mentioned earlier, 70 per cent of the population still does not spend on diagnostic test.
Is affordability a problem that holds back people to seek diagnostic services?
Yes. Affordability is the biggest barrier for people to seek these services. Another factor that is detrimental is the mindset of not prioritising health.
What is your opinion about the private sector collaborating with the government to provider diagnostic services at a lower cost?
PPP in diagnostic services have already started taking ground. States like Andhra Pradesh, Maharashtra have already entered into a PPP with private players to provider diagnostic services at affordable prices. Yet, there is a long way to go for these models to function in a sustainable manner.
What has been TRANSASIA Bio-medicals’ market share in India and other emerging markets?
In India, we have around 25 per cent of the market share. We are present in around 100 countries.
Are there any competitors in the global market?
Our competitors in India and in the global markets are Roche, Abbott, Siemens. In India, the competition becomes lesser as this is our home ground and we have a strong base here, that is why we lead the race here. But I believe it is just a matter of time and we will be able to lead in other countries as well.
You have carved a niche for yourself among the emerging markets. What has been your winning strategy in a competitive environment, especially in an industry dominated by foreign players?
Affordable pricing strategy is our USP. We develop products which are reliable, affordable and innovative. This strategy has helped us to capture the desired market share in India. Right pricing is key to capture market share in other emerging markets as well.
You have been a strong advocate for the ‘Make in India’ campaign. So what opportunities do you see for domestic manufacturing players within the IVD segment?
I believe that the only way to extend our services to poor patients in India is by making diagnostic services affordable and by manufacturing within the country. Therefore, ‘Make in India’ is the key.
The actual idea behind the ‘Make in India’ campaign was to attract global companies to set shop here and increase investments in India, right?
That’s not happening yet in the IVD sector in India.
Can we say that the campaign is not working for diagnostic players?
Yes, it is not yet working for diagnostic players. But in India it is necessary to ‘Make for India, rather than ‘Make in India’ for the rest of the world.
What is your vision for this industry?
I wish that every Indian should have access to quality and free diagnostic services. Also, the focus of our healthcare system should shift from curative to preventive only then can our economy grow stronger.
Any other challenges that are detrimental to your the sector’s growth?
High tax structures is the biggest barrier to the growth of the sector. Total tax component comes to around 25 per cent, out of the which the high component is Excise Duty which is 12 per cent and VAT 12.5 per cent. Moreover, the inverted duty structure on manufacturing sector punishes us. Therefore, we pay higher duty than our competitors.
Will GST have an impact on the IVD sector at large? How will it impact individual business like yours?
It is said the GST will bring down the tax burden, but we will only have to wait and watch how this will play out in the long run.
Just as India’s pharma sector is globally known as the generic pharma market of the world, do you see our domestic IVD market leaving such an imprint on the globe?
Yes I see immense scope. However, domestic IVD players will first need to have a strong base in India only then they should venture into other market.
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