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2008-wdtc-nayyar

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2008-wdtc-nayyar

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    3. US Dental Trade Opportunities in India Presented by: Arun Nayyar DMD President & CEO A N O V I International

    5. Arun Nayyar BDS, DMD, MS, Cert Fixed Pros Private Practice – Atlanta, Georgia, USA Principal Research Scientist Dental Technology Center @ GaTech Director of Fixed Prosthodontics MCG School of Dentistry, Augusta, Ga-retired

    7. Understanding India India is a multifaceted nation Regions are as diverse as countries of Europe. People and Workers The United States of India

    8. Destination India IT is rapidly increasing India’s global economic presence

    9. India’s rising economic profile 2007 Per capita $797 ( 1 : 8 ) 9.4% growth in GDP 2nd only to China $830 Billion GDP in 2007

    10. India: Fastest Growing Free Market Democracy in the world

    12. Talent Pool – our future customers 3.2 million new graduates per annum

    16. Dental offices in India

    17. USA : India 1 : 8 purchasing power $1 in USA = $8 in India ROI is <15%

    18. Understanding the Indian Dental Business Patient Pool Population >1 Billion democratic nation fee for service practices <80% illiterate If 4 % are middle class => 40 Million potential patients

    19. Dentist in Private Practice - Annual Gross 1 : 8 City: Large Small Estab.Practice $100-170K $60-80K Young $ 30-40K $16-22K New grad $ 12-24K $ 8-15K

    20. Dentist – Gross annual income 1:8 Large town $100,000 Small town $ 60,000

    21. Dental Assistant Salary* – 1:8 Large town $3,400 Small town $2,600

    22. Dental Fees ( city size ) 1:8 Small Large Composite $16 $50 PFM crown (np) $40 $150 Veneer $160 $300 Extraction $5 $15

    23. Dental Lab Fees 1:8 PFM crown (np) $20 - $40 Veneer $35 - $70 Denture $20 - $35

    24. Dental Business in India Current market > US $60 million Germany, France, Japan, Taiwan and Korea dominate the market Major presence Dentsply and 3M Very price sensitive market < 15% profit

    25. 200,000+ dentists by 2013 100 % market growth potential Very Price sensitive market Buying power is 1:8 Corporate profit margin 10 -15% 40million potential patients Do not expect immediate returns Educate the dentist and consumer

    26. US dental presence Comments from Dental Dealers Very little US dental presence US sell via small dealers, inconsistent Little customer support Reluctant to work with Indian vendors Do not understand India market 1: 8 price sensitive

    27. “ INDIAN DENTISTS PREFER TO USE AMERICAN DENTAL PRODUCTS “ Read US English publications Internet access to US dental magazines American dental books in standard curriculum

    28. How can a small US company access the Indian dental market? Hire a Consultant, understand the market Partner with established Indian companies Meet wth Indian Trade Visitors Indian Dentists visiting US

    29. Profile of Indian Dental Companies Most are small traders There are 8 -10 well established Co. Each city has 1 or 2 major vendors They all sell what is available

    30. Doing business in India 1 : 8 Pricing for the local economy Support products with good marketing Support International and Domestic speakers

    31. Long term ROI Imports duty is 40% Joint venture with 51:49 equity partner Establish local packing facility Import knock down , assemble locally Plan to manufacture locally

    32. Major Cities Major cities: Delhi, Chennai, Mumbai, Bangalore Many 2nd level cities with great demand

    33. Establish an Office Location - Delhi or Mumbai $2500 month for office space $5000 month for sales force $1000 - $5000 for marketing

    34. Grey market Because of special pricing – always an issue Pack for local market, copy the drug industry – change name , same product Control volume sales Work with known vendors Establish your own sales force

    35. Is money safe? Democratic country Established legal system International banks Full $$ conversion Free currency flow

    36. Great Preference for US Products Endo, Prosthetic, Restorative and Implants Composite, Impression materials Cement systems Ceramic and Resin Lab products Lab and clinic products Dental Chairs, Units

    37. MY Strategy Establish an AMERICAN trading group Share costs , Hire a Consultant Open a trade office in India Send US opinion leaders to lecture Showcase products at trade shows Advertise aggressively

    40. Thank you Questions Please

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