|
Mr. Amit Dave,
M. Pharm, MBA,
Former CEO - Brazil Operations/ Vice President Export
– Zydus Cadila/Claris Lifesciences |
By a pleasant
coincidence, the author happened to come across a Ph D
thesis written by Mr. Abhishek Agrawal, a doctoral
research student from GLS University, Ahmedabad. Mr.
Agrawal, under the guidance of Dr Hitesh Ruparel, has
done some pioneering work on the subject of marketing
strategies followed by the Indian medical devices
industry organizations. The study finds very useful
information about promotion models, distribution set
ups and pricing strategies followed by the Indian
medical device exporters. Seeing high relevance of
this study to our main focus of overseas market
development, it will be appropriate to break our
pattern of writing about country-specific export
tactics and cover the findings of this doctoral thesis
in the current issue of MPDS, for the benefit of our
readers. Sample size
and description for the research
The research scholar has collected data from 163
medical devices companies of India through his own
follow up. Some published databases state that there
are approximately 800 to 1000 medical devices
companies in India, our learned readers know very
well. Out of close to 1000 numbers of total universe,
covering a sample size of 163 (16 %) is a significant
number statistically giving fair authenticity to this
study. |
The companies selected in the study had a reasonable
export turnover. Distribution of this sample of 163
companies based on their export turnover is as below-
| Exports
Sales turnover in Indian Rs |
Number |
Percentage of sample size |
| Not exceeding Rs. 25 lakhs |
11 |
6.7 |
| Rs. 25 lakhs to Rs. 5 crores |
49 |
30.1 |
| Rs. 5 crores to Rs. 25 crores |
35 |
21.5 |
| Rs. 25 crores and above |
68 |
41.7 |
|
Total |
163 |
100.00 |
One point must be noted that the companies covered were
selected across all the sub-sectors and the information
is not restricted to a specific area of this
heterogenous universe of medical devices.
Data collected was through questionnaires to the people
responsible for export or a top executive of the
company. Again, this gives authenticity to the data.
Which promotional channels are followed by Medical
Devices Exporters?
Some of the finding will match with the observations and
experiences of our esteemed readers who are involved in
export of the products and have hands-on experience of
export, and that, again, is a proof of authentication.
The study clearly states that a very large majority of
the companies confirmed that their organization follows
international trade fair as the most common means of
international trade and product promotion. The number is
overwhelming 97%! One to one meeting with clients abroad
comes at close second, with 92.6%. These means are not
exclusive and so, there may be overlapping methods used
simultaneously. The total of percentages for each
response will not total to 100% due to this reason.
Digital marketing, a marketing tool of today’s era,
including social media and B2B portals comes as a common
means with 81 % respondents accepting its use for
overseas promotion and client contact.
This thesis also mentions very interesting study about
overseas Distribution channels and Pricing models being
adopted by the Indian export oriented Medical Devices
companies. We will see those findings in the next
article but let us dwell on the international trade and
meeting with clients abroad models a bit more today in
this article.
In this regard, support from the Government for these
investments is summarized below.
Government support for international trade fairs and
overseas meetings
The portal All Schemes for MSME | Ministry of Micro,
Small & Medium Enterprises displays a link where in a
circular, it is mentioned that there are schemes already
in existence under the aegis of the Ministry of MSMEs
which sponsors MSME business delegations to other
countries for exploring and improving market of MSMEs
products. Participation by Indian MSMEs in international
exhibitions, trade fairs and buyer-seller meet in
foreign countries as well as in India, in which there is
international participation are
also covered in the sponsorship scheme.
The scheme provides financial assistance of up to 95% of
airfare and space rent of entrepreneurs. Assistance is
provided on the basis of size and type of the
enterprise. It also provides assistance for common
expenses of delegation like freight & insurance, local
transport, secretarial/communication services, printing
of common catalogue, etc.
Criteria for qualification, process for applying for
these expenses and supporting documents required for
this application are also detailed in this circular. A
detailed study of the circular is recommended for the
readers. Such applications need to go through an
Industry / Enterprise Association or an organization
associated with promotion and development of MSMEs. The
application needs to go through an online route or in
physical form for seeking financial assistance, in the
prescribed format to the Director (International
Cooperation), Ministry of MSME, Udyog Bhavan, New Delhi. |
