Insights into the Indian Dental World Trusted Advisory Services - - PowerPoint PPT Presentation

Sparrow Business Solutions LLP Trusted Advisory Services in ASEAN and India

Presentation to Mentors of Dental GPS India

Insights into the Indian Dental World

Mumbai, September 30, 2015

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Indian Dental Landscape

Professionals – 250,000 Equipment and Material Market Size USD 125 Million (10% y-o-y) Dental Technician Colleges - 35 Percentage of Patients visiting private practices -80% New Practices started each year – ~ 15,000 Post Grad Institutes– 150 Under Grad Institutes– 300 Number of Graduates every year – 30,000 Number of Clinics– 150,000 Oral Care Market – USD 1.8 Billion Dental Care (Dentists and Ancillary Services Market – USD 1.3 Billion (25%-30% y-o-y) Laboratories– 5,000 Number of Oral and Maxillofacial Surgeons -2,500 Concentration of Dentists in Urban and Rural India – 10,000 and 250,000 Number of specialists in Dental Implants - 1,500

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“Dental Specialty is undergoing the same transformation which the medical specialty underwent 20 years ago”

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Consolidation lead by Corporate Chains

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Dental Tourism

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Entry of International manufacturers

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Easing of Government Regulation

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Increased usage of Information Technology

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Consolidation in Dental Lab sub sector “80 percent of India’s population has never been to a dentist”

Emerging Trends

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Clove Dental

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Axiss Dental/NHDC

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Smile Kraft

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Vasan Dental

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Denty's

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Mydentist

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Smile Merchants

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Dentistree

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Swiss Smile India

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Apollo White Dental

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Signature Smiles

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Smile Care World

Entry of corporate dental chains

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Tie up with Hospitals is helping to facilitate the dental tourism

• bjective

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Axiss has tied up with Artemis, Fortis and Columbia Asia

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Ease of transferability of best practices and non clinical support

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PMS is cloud based and hence platform and location independent

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Consolidation with private clinics is lead by these chains

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Private Equity Funds are funding the right entrepreneurs to set up/ expand chains

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Entry of international strategic/ existing players

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 Dental tourism forms 10% of the total medical tourism industry and increasing  Estimated to be about USD 200,000 per annum in size  Lower procedural costs and promotion of medical tourism  In the US and Europe, the surgery cost of dental implants is more than 60–70 percent of

the total cost, whereas in India the surgery cost accounts for only 25–30 percent.

 Alliance Dental has launched Dental Spas

Dental Tourism

Procedure US and Europe India Filling USD 300-USD 400 USD 30-USD 40 Root Canal USD 3,000 USD 150-USD 200 Dentures USD 1,000 USD 300

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Existing Players Kavo GC Ivoclar-Vivadent 3M Mecktron Sirona Aceton Ultradent Coltene Voco S S White Neodent (US) BIOMET 3i (US)

Entry of international companies

Major Exporter Countries Germany USA Italy Japan China

Major Items Consumable items Implants X-Rays Dental Units Imaging Systems Laboratory Equipment Laboratory Materials Dental Drills Scalars Hand Pieces Sterilization Equipment/Devices

Existing Players LifeCare Devices Bio Horizons Implant Systems Dentsply Friadent GmbH Osstem Implants Anthogyr (France) Bego Implant Systems (Germany) Bicon Dental Implants (US) Nobel Biocare Holding AG (Switzerland) Osstem Implants (South Korea) Straumann Holding AG (Switzerland) Shinhung, Korea Shofu

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• 100% FDI is permitted for Health and Medical Services under the

automatic route

• Liberal policies to attract international manufacturers to establish

JVs and outsourcing facilities

• Reduction of customs duty on Dental Equipment
• Higher depreciation on medical equipment
• Reduced Excise duty on Dental Furniture

Easing of Government Regulations

Sparrow Business Solutions LLP Entry of PMS providers

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Practo

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Our Health Mate

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Lybrate/ Ziffy

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Healthcare Magic

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DocTree

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Helpingdoc

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DocSuggest

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Evaidya

Information Technology System

Modules of Medical Practice Software

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Appointment Booking

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Patient Record Management

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Billing and Collection

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Prepaid Appointment booking for NRIs

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Online Medical advice / Second opinion

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Consult doctor online / Talk to doctor online

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Video Consultation

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 There are over 5,000 independent dental labs in India; highly fragmented  Very few are Chains with multi location presence  DentCare, SM Dental Lab, Illusion, Dental Ceramist, Laxmi Dental and Katara Dental

are among the few with a corporate structure

 Another 10 only would have a website  Big opportunity in outsourcing of work from US and Europe  There is business opportunity for Dental Care chains to set up Lab chains too ?

Consolidation in the lab space

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About Us

 We are a corporate finance firm  Our focus is on Indian sub-continent and South East Asia  Key service offerings include Market Entry Strategy Consulting, M&A Advisory and Capital Raising Advisory  Sparrow Advisory team has over 70 years of total deal experience  Team has serviced clients from US, Canada, Europe, UK, Japan, India, Thailand, Indonesia and Singapore  Rohit, founder of the firm, was based in Singapore for four years before setting up the firm and his key focus was on South East Asian markets  Detailed research is the foundation on which Sparrow Advisory business is run.  We tell you what others don’t. We coach you on culture and what is/ is not acceptable

SPARROW BUSINESS SOLUTIONS LLP Level 4, Augusta Point, Golf Course Road, Sector 53, Gurgaon 122002, India T: +91 124 435 4290 F: +91 124 435 4001 rohit@sparrowadvisory.com www.sparrowadvisory.com

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