Taking advantage of the Medtech market potential in India: success will hinge on operating model innovation

Medical technology (Medtech) companies are accelerating their investments in emerging markets, and India is a prime target because of its large population, growing middle class, and improving healthcare infrastructure. To date, most Medtech multinationals have pursued a conservative business strategy and operating model in India, focused on delivering their existing offerings to the premium segments of the market. But the playing field is becoming far more competitive, and companies in search of growth need to move beyond the traditional model.

To gain perspective on this topic, PwC recently surveyed executives from leading global and domestic Medtech companies with India operations representing $1.3 billion in revenues in India, or roughly 40% of the $3 billion Indian market. Their responses, combined with in-depth interviews and PwC’s research and experience in the industry, provide insight on how to succeed in India.

As discussed in this in-depth report, in order to sustain revenue growth and increase market share in India, global Medtech companies must tailor their business strategies and operating models to the needs of India’s unique marketplace. Specifically, Medtech companies will need to:

  • Define a more holistic and aggressive India market attack strategy. Continue to focus on the premium India customer segments but with new, tailored and comprehensive solutions. Significantly increase focus on the under-served middle-income population living in cities and in rural and exurban areas (Tier 2 segments). Move beyond importing current mature market products to customized offerings, shift from technology product innovation to value based innovation, and establish new business models.
  • Define an operational strategy and ensure alignment with the new business strategy. Success will depend on establishing local and regional operational capabilities to deliver the new innovations, including a low-cost manufacturing network, local research and development (R&D), and market-specific commercial operations and capabilities.