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Growth Dynamics For Indian Medical Device Industry


A report on the “Roadmap for the Medical Device Industry” in Mexico by “ProMexico” ( www.promexico.gob.mx ) has identified “Supplier Development” as major focus area and suggested the following :


“Supplier Development must take into account the significant gap in the sector’s supply chain, which will not have capabilities from other sector to convert and that start by creating national companies in these niches or attracting companies from other regions and developing strategic alliances with Mexican companies. The TRM work group identified the following main projects :


• Creation of a supplier integration program.
• Consolidation of a National Supplier Development Council for the Health Sector.
• Promotion of sector events that allow the presentation of structural projects to opinion leaders.
• Replication of the R&D Investment Program by bid purchases model (YSSEMYM).
• Implementation of the Supplier Development Program in companies that are affiliated to the chambers and with government tractor companies.
• Promotion of the national development of high specialty medical devices.


Role and Importance Of Supply Chain ( Raw Materials / Components / Semi finished Products etc. including services) For the Growth Of Indian Medical Device Industry.


Medical Plastics Data Service interacted with the leaders of the Indian Medical Device Industry and compiled their opinions on “Indian Medical Device Industry 360 degree View”. The leaders opined on the role and importance of supply chain as follows (Detailed report attached.) :


“A strong supply chain supports the Medical Device Industry to improve Global Competitiveness. As shared by Mr Kishor Khanna, A positive approach will be collaboration with the industry and academia to develop indigenous manufacturing base of all possible materials required by the industry. Not only input material but also the availability of high tech machinery essential for moulding, extrusion and assembly is not at par with other countries. A synergetic approach is required where the industry, academia and government work towards developing the technology base in India.”


As per Mr C. Balagopal, if effective steps are taken for various issues discussed earlier in this debate, it will lead to the development of Indian Medical Device Industry. It will also create the necessary conditions for development all along the supply chain starting from basic raw materials, intermediate components, sub contracting/ vendoring, outsourcing of processes like sterilization, testing, warehousing, transportation etc.


Supporting the need for strong supply chain, Mr Ajay Pitre cited the case of aerospace industry. The similarity as per him is because of both have reliability requirements of highest order. He further says that , “The other area where specialized supply chains have contributed to the device industry has been in the field of packaging. Validation requirements for medical device sterile packaging are extremely stringent and the advancements in packaging materials and conversion technologies made by service providers play a key role in enabling the device industry. He also feels that, “Government needs to financially support service providers in these supply chain areas who could form a supplier backbone.”


Emphasizing on warehousing requirements, Mr Himanshu Baid mentioned that, “higher Volume products should be centralized so that they can be easily distributed to various parts of the country. Warehouses with proper storage facilities should be created in each District for storage of products to ensure efficient distribution to smaller healthcare centres. Al so this will ensure shorter delivery times. Public Private Partnerships will definitely make this more affordable.”


Share of Medical Device Companies involved in one or more phases of Medical Device manufacturing process : Global and Indian Scenario


As per a 2014 report on “ Production , Research And Innovation In The Medical Device Industry in Italy” prepared by “Assobiomedica Research Centre ( CSA )” - “56% of companies are involved in distribution, 40% in production and 4% in services” Overall, there are 243 companies that target their activity on one or more phases of the medical device manufacturing process: 10% are involved in design or prototyping,70% manufacture components or semi-finished products, 32% manufacture accessories or finished products and 20% intervene in the final phases of the manufacturing process and are involved in assembly, sterilisation, labelling or logistics.”


New medical devices procurement guidelines propose to make 20-50% of components in India


NEW DELHI : The Department of Pharmaceuticals has proposed that domestically sourced components have to contribute to 25-50% of the cost of medical devices procured by the government, depending on the category of the device. A draft of the proposed guidelines, created to give preference to products made in India, has sought comments from all stakeholders by April 5.


At the same time, the proposed guidelines lack measures to help the local industry grow and imposes conditions that may hurt the quality of medical devices procured through these tenders, claimed a lobby group of domestic firms in the sector.


The guidelines also may not be possible to implement for highend, critical products for which there is currently no ecosystem available to manufacture locally, according to two lobby groups representing several multinational medical device firms.


Domestically sourced components have to contribute to at least half the cost of medical disposables and consumables and 40% of the cost of implants in order for the device to be eligible for procurement, according to DoP’s draft. Local content should contribute to 25% of the cost of medical electronics, hospital equipment, surgical instruments and diagnostic reagents/in-vitro diagnostics, according to it.


DoP has prescribed the requirements based on its current understanding of the medical devices market in India, according to the draft. At the same time, it also said it is in the process of collecting “accurate and reliable” data on criteria like the total capacity and production of various categories of devices in the country.


Purchase preference shall be given to local suppliers by all procuring entities, stated the draft.



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