Future Roadmap for Industry of Surgical Instruments of Pakistan Basit Rauf Director TDAP Sialkot

Future Roadmap for Industry of Surgical Instruments of Pakistan Basit Rauf Director TDAP Sialkot

Table of Contents 1. Profile of Industry 2. Product HS Code 3. World Exports of Surgical Instruments 4. Export of Surgical Instruments from Pakistan 5. Export Destinations 6. Top Buyers of Surgical Instruments of World 7. Support from TDAP for Surgical Cluster 8. SWOT Analysis 9. Value Analysis 10.Vision 11.Suggestions 2

Profile of Industry Capital Investment: Size of Industry: Rs 18 bn 3000 units Employment: 500,000 Single use instruments 80% Re-usable instruments 20% 3

Product HS Codes 1 9018 31 Syringes with or with or without needles, parts accessories 2 9018 90 Instruments & appliances for medical surgical dental veterinary 3 9018 49 Dental Instruments and appliances 4 9018 50 Ophthalmic instruments 5 9021 Orthopedic appliances, bone plates/screws/nail, pacemakers 6 9402 90 Medical, surgical, dental furniture, similar chairs, operating tables, hospital beds, dentists chairs 7 8213 Tailor, barber &stationary scissors etc. 8 8214 20 Manicure and Pedicure instruments 4

World Exports of Surgical Instruments Under HS Code 9018 Value in Thousand US $ Country 2007 Share % 2008 Share % 2009 Share % World 68,963,165 80,483,280 77,668,849 USA 17,254,160 25.02 20,051,360 24.91 20,137,423 25.93 Germany 9,923,722 14.39 11,371,553 14.13 10,531,688 13.56 Netherlands 5,437,067 7.88 5,866,095 7.29 5,767,732 7.43 Belgium 3,135,491 4.55 4,300,586 5.34 4,196,479 5.40 Japan 3,844,916 5.58 4,073,653 5.06 3,697,989 4.76 Ireland 2,130,545 3.09 3,320,008 4.13 3,123,952 4.02 France 2,722,657 3.95 3,184,646 3.96 2,970,150 3.82 UK 2,116,605 3.07 2,215,086 2.75 2,139,653 2.75 PAKISTAN 229,517 0.33 269,730 0.34 242,945 0.31 Source: UN Comtrade 5

Exports of Surgical Instruments from Pakistan 300 250 200 191 261 250 229 150 163 Export M US $ 100 50 0 2005-06 2006-07 2007-08 2008-09 2009-10 Source: TDAP 6

Export Destinations USA 72% of our production is sold to following eight countries of the world: USA 25.54 Germany 14.66 UK 10.67 France 5.18 Italy 3.87 Brazil 2.37 UAE 2.23 Australia 2.08 Japan 2.05 Belgium 1.70 Mexico 1.51 Other partners 28.14 1.51 1.70 2.08 2.05 2.23 2.37 28.14 3.87 5.18 10.67 25.54 14.66 Germany UK France Italy Brazil UAE Australia Japan Belgium Mexico Other partners Source: UN Comtrade 2009 7

Top Buyers of Surgical Instruments US$ 000 Years Sr.# 1 2 3 4 5 6 7 8 9 10 2009 2008 2007 Importer Trade Value Importer Trade Value Importer Trade Value USA $13,378,410 USA $14,279,915 USA $13,413,438 Germany $6,598,303 Germany $6,763,912 Germany $5,869,553 Netherlands $5,060,126 Netherlands $5,194,639 Netherlands $4,665,851 Japan $4,317,509 Japan $4,464,992 UK $3,904,095 Belgium $4,202,190 UK $4,343,674 Japan $3,811,695 France $3,770,125 Belgium $4,129,994 France $3,440,566 UK $3,691,046 France $4,094,313 Belgium $3,006,422 Italy $3,009,872 Italy $3,085,571 Italy $2,763,139 China $2,450,200 Russia $2,293,290 Spain $2,049,426 Canada $2,086,066 Spain $2,224,431 Canada $1,940,078 Source: UN Comtrade 8

Support of Trade Development Authority of Pakistan to Surgical Instruments Sector Trade Policy Initiatives (Cluster Development Programme) Establishment of SIMTEL Support for Elimination of Child Labour Marketing Support Facilitation (CBI Training Programme) 9

Strengths SWOT Analysis 100 years history Well known in global markets Established distribution networks Wide range of products Flexible production systems Availability of cost effective skilled labour 10

Weaknesses Limited direct contact with surgeons (End Users) Inconsistent product quality Focus on low-tech, low quality, low value products Shrinking profit margins Informally trained work force Absence of work force for emerging technologies Lack of quality raw materials Absence of R & D Lack of linkages with academia 11

Opportunities Rapidly Growing Market Demand of high tech products Rising demands in African and Asian markets Diversification into General Healthcare Industry 12

Threats Emerging technologies replacing conventional instruments Market becoming highly regulated Diminishing skilled work force Inability to stay together Vendor Production Practices Compliance with labour, quality, social and environmental standards 13

Value Analysis TODAY Conventional production methods, and low value products Lack of formal training at all management levels (Top, Middle, First line) Cut throat competition Poor access to raw materials for hi-tech products. Low value/ low margin products Declining exports: Pakistan Market share of total global market (less than 1%) TOMORROW Modern techniques of production, high value products Better skilled jobs; more productive workforce Stronger industry collaboration to improve marketing & cater growing global market In time availability of quality raw materials R&D for improving the quality of existing materials & new materials development Increased value addition High value/ high margins Achieve 1 Billion USD export target 14

Vision A Paradigm shift Low Value Conventional Instruments $ $ High Value Medical Devices 15

Suggestions Establishment of Surgical Instruments Training Institute Establishment of R&D Cell in the Training Institute Establishment of Common Facility Centre Up gradation of SIMTEL 16

Minimum Export Price Fixation Regime (MEP) Support for Certifications Networking through Cluster Development Programme Marketing Suggestions 17

THANK YOU 18