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

Presentation to Mentors of Dental GPS India Insights into the Indian Dental World Trusted Advisory Services Mumbai, September 30, 2015 in ASEAN and India Sparrow Business Solutions LLP

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

Emerging Trends “Dental Specialty is undergoing the same transformation which the medical specialty underwent 20 years ago” Consolidation lead by Corporate Chains  Dental Tourism  Entry of International manufacturers  Easing of Government Regulation  Increased usage of Information Technology  Consolidation in Dental Lab sub sector  “80 percent of India’s population has never been to a dentist” Sparrow Business Solutions LLP

Entry of corporate dental chains Clove Dental  Tie up with Hospitals is helping to facilitate the dental tourism  objective Axiss Dental/NHDC  Smile Kraft  Axiss has tied up with Artemis, Fortis and Columbia Asia  Vasan Dental  Ease of transferability of best practices and non clinical  Denty's  support Mydentist  PMS is cloud based and hence platform and location  Smile Merchants  independent Dentistree  Consolidation with private clinics is lead by these chains  Swiss Smile India  Private Equity Funds are funding the right entrepreneurs to  Apollo White Dental  set up/ expand chains Signature Smiles  Entry of international strategic/ existing players Smile Care World   Sparrow Business Solutions LLP

Dental Tourism  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 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 Sparrow Business Solutions LLP

Entry of international companies Existing Players Existing Players Major Items Major Exporter Countries Kavo GC LifeCare Devices Consumable items Germany Ivoclar-Vivadent Bio Horizons Implant Systems Implants USA 3M Dentsply Friadent GmbH X-Rays Italy Mecktron Osstem Implants Dental Units Japan Sirona Anthogyr (France) Imaging Systems China Aceton Bego Implant Systems (Germany) Laboratory Equipment Ultradent Bicon Dental Implants (US) Laboratory Materials Coltene Nobel Biocare Holding AG (Switzerland) Dental Drills Voco Osstem Implants (South Korea) Scalars S S White Straumann Holding AG (Switzerland) Hand Pieces Neodent (US) Shinhung, Korea Sterilization Equipment/Devices BIOMET 3i (US) Shofu Sparrow Business Solutions LLP

Easing of Government Regulations  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 Sparrow Business Solutions LLP

Information Technology System Entry of PMS providers Modules of Medical Practice Software Practo  Appointment Booking  Our Health Mate  Patient Record Management  Lybrate/ Ziffy  Billing and Collection  Healthcare Magic  Prepaid Appointment booking for NRIs  DocTree  Online Medical advice / Second opinion  Helpingdoc  Consult doctor online / Talk to doctor online  DocSuggest  Video Consultation  Evaidya  Sparrow Business Solutions LLP

Consolidation in the lab space  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 ? Sparrow Business Solutions LLP

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 Sparrow Business Solutions LLP

Contacts 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