100% FDI Approval for Medical Devices Will Make Indian Company Non-Existent | Future Market Insights Blogs

100% FDI Govt. Approval in Medical Devices

The Indian government recently approved 100 percent foreign direct investment (FDI) in medical devices through automatic approval route. This move has been received with mixed reactions from domestic medical device manufacturers.

There is little doubt that the news of 100% government approval for FDI in the medical devices sector will indeed affect the Indian health care scenario greatly. According to Future Market Insights (FMI), “Manufacturers in the Indian medical devices industry are increasingly shifting towards importing and trading rather than investing in manufacturing; and with the introduction of this policy, domestic manufacturers might experience a further decline in revenue.”

Currently, India imports around 70% of medical devices used in the country. The ‘Make in India’ campaign has resulted in the government relaxing the FDI rules in order to attract investments and drive domestic manufacturing.

However, domestic manufacturers have raised concerns about the misuse of this policy by multinational corporations. According to them, this move could result in large foreign companies exploiting this policy to set up their own local subsidiaries and continue imports. Furthermore, it will make the minority of the domestic manufactures of medical devices an easy bait to pick for large corporations. The Association of Indian Medical Device Industry stated that it welcomes this policy initiated by the government, but urges the government to make sure that FDI is used for local manufacturing and not for trading purposes.

Previously, the government had created fully-owned subsidiaries for importing, stocking, and marketing their products instead of focusing on manufacturing. But, a significant proportion of the medical devices in India are imported from foreign countries.

Foreign Investment was introduced in India in 1991 under the Foreign Exchange Management Act (FEMA). A 2012 survey conducted by UNCTAD projected India as the most important FDI destination after China. The sectors which attracted higher inflows were telecommunication, construction activities, services, and computer software and hardware.                                                               

“The key to ensuring that this policy is beneficial to domestic manufacturers of medical devices is to make manufacturing viable in India, which will allow domestic investors to reap the benefits of this growing market,” stated a lead consultant at FMI.

Presently, the medical devices industry comes under the Drugs and Cosmetics Act, and investments by foreign organizations should also be governed by the same rules.

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Shift In Marketing From Globalization To Personalization - Future Market Insights

Marketing is an integral branch of any organisation that aspires to make it big. It is the pulse that breathes life into the efforts of developing a company business plan. Over the years, marketing as a branch has evolved considerably, but it is the company’s implementation of new strategies that decide its rate of success. Simply put, fundamentals of marketing have not changed; the method of delivery has.

Every year, companies upgrade their marketing policies. Analysts predict a growing number of companies to adopt a consumer-centric approach in order to win customers’ hearts, leaving behind indelible impressions. This shift towards a more consumer-oriented, personalized marketing stems from an increasingly tough market competition, faster communication channels the need for resource accountability and creating a legacy.

Why Personalization is the Key to Success

Her, a science fiction romantic comedy-drama film by Spike Jonze transports its viewers to a time in future where the lost art of writing letters, mostly romantic in nature, is being revisited and is a growing business. At a time when everything around seems robotic and mundane, in monochromes of grey, the protagonist Theodore Twombly, works to earn his bread and butter writing handwritten love letters as per client demands, reminiscing moments between lovers in a way that touches a chord with its readers. 

When one opts to adopt a personalized approach towards offering products and services, their business makes a winning case for itself. Personalizing customer experience be it online or offline is the key to creating a trustworthy brand that people can return to without hesitation. Needless to say, in the film, the hero goes on to become a successful writer!

Making Dreams Come True
Analysts at FMI believe that a business plan comes with possibilities without barriers. Businessmen often come across clients who carry around a bag full of expectations for personalized products and services. Sometimes a shift in perspective in viewing customer expectations through a lens of possibility can lead to a revolutionary personalized marketing technique.

Imagine a house painting company delivering a specific hue that does not feature in their catalogue. This customization offers a brilliant opportunity for the business house to not just paint dreams, but also deliver a unique service like none other. Maybe marketeers need to take Walt Disney’s saying, “If you can dream it, you can do it”, seriously!

Risking Reinvention
The next trick in the bag towards winning this shift in marketing strategy is to predict the expectations of consumers. For instance, while breaking traffic rules to text, it is such a relief to know that your smartphone knows precisely what to text (call it artificial intelligence or predictive text). It saves mental hassle and makes you fall in love with the application.

Nowadays, internet software allows companies to identify the physical locations customers are signing in from, keep records of customers’ transactions with them, and use tracking cookies to learn about consumers’ other shopping interests. With this data, a website can personalize a visitor’s experience by showing them a customized page, featuring their language preference and products and offers they are more likely to be interested in. Brands like Nike and Adidas are leading the way in terms of product personalization.

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Ready to Drink Tea and Coffee Market Analysis for India | Future Market Insights Blog

Ready to Drink Tea and Coffee Market Analysis for India

Today’s fast driven world requires efficient time management to ensure productive result acquainted with the proper work- life balance. Tea and coffee plays a significant and soothing role in providing the same. May it be office or home or suited climatic conditions such as winter and rainy seasons, tea and coffee offers the quickest therapy to relax mind and allows efficiency in spur of time. Given the importance and reliability of huge cluster consumers adept with tea and coffee consumption, the present industry is more adept with the ready tea to drink (RTD) products.

In India, the demand of ready to drink tea and coffee is more evident from the age group in the range of 25 years and 54 years, which accounts for nearly 41% of the Indian demographic split. There has been enhanced trend or proliferation of café culture and the market is expected to double in the next five years. Cafe outlets such as Costa coffee, coffee world, Café coffee day, starbucks, Lavasa and Coffee Bean & Tea Leaf, etc are conglomerating at a rapid pace in Indian cafe market. Prior success and demand of domestic tea and coffee market alongwith the abundant consumer section has attracted the international players towards India. The trend is further expected to grow in the coming future as far as Indian market is concerned, especially on account of growing awareness for health and improved lifestyle. The fluctuation however can be seen in terms of varying demand from tea and coffee.  However, increasing raw material prices can prove to be detrimental in the ready to drink market growth. The industry is also lucrative in terms of employment generation. Increasing number of variants and competitiveness in the market, especially from international players, portray the active growth trend of ready to drink beverage industry.

It is equally imperative to assess the dynamics of the entire beverage industry. The associated beverage companies have included ready to drink products of strategic importance in their product offerings. Earlier, Coca Cola India had launched its ready to drink ice tea Nestea and ready to drink tea coffee such as Georgia gold is one such example.  Further, the key players are at expansion stage as iterated from the recent plans of India’s topmost coffee chain, Café coffee day to ponder for a possible initial public offering (IPO). The company is also planning to increase the number of its 1,650 outlets with better offerings. Undoubtedly, from a consumer perspective and affinity for tea and coffee, a lot is to be witnessed in the near future.

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Dual Clutch Transmission System Market | Future Market Insights Blog

Dual Clutch Transmission System Market

Dual clutch transmission (DCT) also known as twin clutch or double clutch is creating a buzz in the automotive transmission systems market because of its novel features and performance standards it offers. Transmission systems are one among the essential and vital components in automobiles. Ongoing efforts by research institutions and automakers toward improving performance and efficiency of automobiles have led to various innovations and developments in recent years. Some of these developments include direct-fuel injection systems, start-stop systems, hybrid vehicles, turbochargers, utilization of light weight materials, and advanced transmission systems.

The performance of a vehicle is dependent on the number of systems and components in the automobile, of which the transmission system plays a vital role for determination of fuel economy. Driving experience improves with increasing number of gears and so does fuel economy. On the flipside, increasing number of gears makes designing complex, and also increases the weight of the transmission system. With this technical limitation, engineers face challenges with regard to designing DCT systems.

Some quick facts brought into the limelight by Kia Motors include: 10% reduction in weight improves fuel economy by 3.2%, acceleration performance by 8.5%, durability by 60%, and reduces carbon emissions by 3.2%. DCTs are 12% more efficient compared to automatic transmissions of the same gear range and capacity. Addition of other efficient features in automobiles such as gasoline direct injection improves thermal efficiency by 3%, and turbocharged vehicles further add on to significant efficiency improvements.

Some aspects designers and researchers need to address to ensure high adoption of dual clutch systems include developing a downsized light-weight engine at par with high performance vehicles, housed in a mid-sized compact car, available at reasonable price, and complying with all the relevant safety and emission norms. Automakers are continuously making efforts to differentiate their products from others, in order to succeed and sustain in the market. Of the many aforementioned innovations, DCT presents potential growth opportunities.

Dual clutch transmissions are expected to grow twice as fast when compared with turbochargers market, 1.3 times than variable valve timing systems, 1.1 times than gasoline direct inject injection, and 1.3 times than common rail diesel injection systems in the coming years. Among transmission systems, DCTs are expected to grow twice as fast as continuously variable transmission systems, 2.3 times as fast as manual transmissions, and 1.7 times as fast as other transmission systems. Growth opportunity in this segment looks appealing to automotive producers. Some of the forerunners to have incorporated this technology include Volkswagen, Honda, Hyundai, Toyota, Ford, BMW, and others.

Dual clutch transmission does not come with a clutch pedal; instead the gear-box houses two separate clutches, which keep the engine and transmission system perpetually in engaged mode; thus helping in mitigation of power losses. This function can be operated in fully automatic mode as well as the driver can shift gears manually. Incorporation of this technology helps in enhancing driving experience and comfort. Here, comfort and driving experience could differ as per the psyche of the end- user. In North America for instance, users prefer the continuously variable transmission option because of comfort; whereas, in Europe users prefer DCTs for its performance. DCT is a perfect mix of manual transmission, automatic systems, and intelligent computer systems, which helps to address comfort and performance requirements.

DCT technology has made its way from high performance sports cars right into the conventional passenger car segment. The launch of automated manual transmission systems in mass automotive markets such as India and China is anticipated to further lead to a shift in consumer demand toward automated or manual dual clutch transmission systems. This shift is further expected to stimulate demand for dual clutch systems in Asia-Pacific region. Even a slight increase in the adoption rate or penetration of DCT in transmission systems is expected to open up high volume markets for suppliers.

From the regional perspective, Europe is the largest market for these systems, accounting for around half of the pie by market volume, followed by North America and Asia. As of 2013, DCT accounts for between 9% and 10% of the automotive transmissions market share in Europe and expected to gain around 4–-5% share in future. In North America, DCT accounts for 4–5% share and is expected to gain 2–-3% in the next five years. Asia-Pacific is expected to witness tremendous growth in terms of adoption of DCT; with current share of DCT valued between 4–5%. This is expected to reach 12–-14% over the next five years. Globally, penetration of DCT is between 10% and 11% currently, and is expected to reach up-to 16% in the next five years. DCT market volume is expected to double from its current value by 2020, with the 7-speed DCT gearbox system expected to remain the largest market segment for the years to come.

DCT gearboxes are available in two types such as wet and dry.  The wet type is extensively used across all geographies. DCT is suitable where fuel economy is a top priority, along with preference for enhanced driving comfort. Companies such as Mercedes-Benz, Volkswagen, and Ford are continuously working on improving this technology, by reducing the gear shift time to few milliseconds. The dual clutch transmission unit developed by Volkswagen is capable of shifting gears in around eight milliseconds.

Getrag is one among the prominent suppliers of DCT systems. The company generated turnover of 3.2 billion Euros with approximate production of 3.88 million transmissions, of which 2.72 were manual and 1.16 were automatic. The company has set aggressive targets to expand its production capacity to 5.5 million units across its 23 facilities. Other major players include ZF Friedrichshafen AG, Oerlikon Graziano SPA, Fiat Powertrain, Aisin Aw Co., Ltd., Tremec, and Magna Powertrain.

DCT is available in the market under various names such as twin clutch, double clutch, power shift clutch, and direct shift gearbox. Most of the renowned automakers have partnered with component suppliers and research institutions for in-house production and development of DCT systems. This leaves a small window of opportunity for independent DCT systems providers to dominate the market.

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