A REPORT

ON

“THE STUDY OF USE OF MEDICAL

GRADE ADHESIVES IN THE MEDICAL
DEVICE MARKET IN INDIA”

BY

IBS Hyderabad

3M India Ltd,
Concorde Block, UB City,
24, Vittal Mallya Road
Bangalore 560005

6
 A REPORT
ON
“THE STUDY USE OF MEDICAL GRADE
ADHESIVES IN THE MEDICAL DEVICE
MARKET IN INDIA”
BY

A report submitted in partial fulfilment of

the requirements of

MBA Program of
IBS Hyderabad

Distribution List:
Company Guide: Faculty Guide:
Mr Sambhav Bafna Prof. Chethana G Krishna

Date of Submission:

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 AUTHORISATION

This is to authorise that the project report titled “The Study of the use of Medical Grade
Adhesive in the Medical Device Industry.” Is an original research work done by ______,
Enrollment No._________, MBA batch of ______, IBS Hyderabad, during the summer
internship at 3M India Ltd . This report is submitted in the partial fulfilment of the
requirement of the MBA program of IBS Hyderabad

This work has not been submitted to any other university or Organization for assessment or
award.

Company Guide: Faculty Guide:

Mr Sambhav Bafna Prof. Chethana G Krishna

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 ACKNOWLEDGMENT

Hereby take this opportunity to thank 3M India Ltd., for providing the exposure to the
corporate world during the course of summer internship.

Express my sincere gratitude to the company guide, Mr. Sambhav Bafna, for providing great
insights about the significance of the medical grade adhesive and the medical device industry
in India, (especially Bangalore), also guiding me through the course of internship and being a
great support.

Also would thank faculty guide, Prof. Chethana G Krishna for guiding in the preparation of
preliminary and the final report, as well giving me valuable advice on the project.

Also would like to thank, Mr. Sudhir AM and Mr. Kannan and all the members of 3M India
Ltd, who helped me throughout the summer internship.

Grateful to IBS Hyderabad, for providing me such a platform.

Last but not the least, all my friends and family for their support and cooperation.

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Table of Contents
1. Project Introduction: 8
1.1 Objectives of the Study 8
1.2 Scope of the Study 8
1.3 Limitations 8
1.4 Methodology 9
2. Introduction to the Medical Device Industry in India 10
2.1 About the Medical Device Market in India 10
2.2 Industry Structure 12
2.3 Distribution of Income among Medical Device Manufacturers in India 13
3. Use of Medical Grade Adhesive in Medical Devices 14
3.1 About Adhesives 14
3.2 Scope of Medical Grade Adhesives in Medical Devices 14
3.3 Benefits of Medical Grade Adhesives 15
3.4 Categories of Medical Grade Adhesives 16
4. Introduction to the Company: 19
4.1 About 3M India 19
4.2 Vision20
4.3 Marketing Mix of 3M India 21
4.4 SWOT Analysis of 3M India 22
5. Steps involved in Client Acquisition for 3M India 23
6. Project Introduction: 24
6.1 Results Obtained 24
6.2 Action Plan 24
6.3 Schedule 24
7. References 25

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List of Figures

Figure 1: Health-Care Market In India By Market Size…………………………………..11

Figure 2: Distribution of the Health-care Industry in India………………………………11

Figure 3: The Indian Medical Device Sector……………………………………………...12

Figure 4: Imports v/s Domestic Manufacturing…………………………………………...12

Figure 5: Highly Fragmented Domestic Industry……………………………………….....13

Figure 6: Types of Medical Grade Adhesives on their usage to skin……………………...16

Figure 7: Visuals Depicting the layers of coating in Medical Grade Adhesives…………..17

Figure 8: Visuals Depicting the role of Medical Grade Adhesives for Medical Devices…18

List of Tables

Table 1: Problems, Phenomenon and Probable causes generally associated with Adhesives.15

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 ABSTRACT
The project on “The study of the use of medical grade adhesives in the medical device market
in India”, explains the role of adhesives in the medical devices, and it’s a Greenfield project
for 3M India.

Was briefed by the Company guide about medical grade adhesives as well as the types of
these adhesives available with the company and also briefed about how to handle customers
and their queries of their products.

Initially a list of customers were assigned for the purpose of identifying their requirement of
the type of medical adhesives they need for their products, based on prior interaction with
them on the mid of February in a medical fair organized by FICCI.

Methodology used for the purpose of generating leads was through google and justdial to find
list medical device manufacturers in Bangalore. Action plan for the next six weeks is email
and follow ups with medical device manufacturers and as well meetings.

Also, a list of prospective clients based in Bangalore had to be prepared and submitted to the
company guide. And was assigned to make to call to these corporate clients and inform them
about the medical adhesive for their devices.

Out of a list of 21 clients, 4 leads have been generated so far, and the 15 of the other clients
require an email before an appointment.

As per the report, prospective customers are identified in Bangalore and after which a client
base will be established and will later expand to other cities as well. The purpose of this
report is for 3M India Healthcare to have good network clients, initially in Bangalore and
later in large metropolitan cities in India.

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1. PROJECT INTRODUCTION: THE STUDY OF USE OF
MEDICAL GRADE ADHESIVES IN THE MEDICAL
DEVICE MARKET IN INDIA

1.1 OBJECTIVE OF THE STUDY

- To identify the medical devices manufacturers in India and find the target market
among the manufacturers to sell medical adhesives.
- To understand their business, the devices manufactured so that the medical grade
adhesives come into play. For example, medical grade adhesives do not come into
play in products such as catheters and stents since their devices are surgical and
intrusive in nature.
- To approach potential medical devices manufacturers to market the adhesives.
- Arranging time and date for the purpose of meeting the clients on the appointment
along with the 3M company guide and sales manager.
- Also to probe into the requirement through client interaction the requirement of the
types of adhesives for their product.

1.2 SCOPE OF THE STUDY

- This project helped in finding out various moment of truth that the customer
encountered while trying to reach the company, hence the company can use this
finding to extend its reach to prospective buyers
- The marketing managers can use this study to identify opportunities and develop
plans to promote its products for the future
- This study will help push Healthcare division of 3M India, beyond the boundaries of
Bangalore market to other metropolitan cities in India, through customer interaction,
after which an action plan can be made.

1.3 LIMITATIONS

- This a green-field project for 3M India and the project is mostly focussed on acquiring
clients in India
- There is project is small due to limited manpower
- The medical grade adhesives are not manufactured by 3M India, but imported from
3M USA, making the waiting period of client 2 weeks to acquire the product.
- The gestation period of this project is 10-12 months.

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1.4 METHODOLOGY

The research is exploratory in nature, which requires both primary and secondary
research.

Primary Research: The purpose of this research to find answers to certain questions. It
involves surveys, questionnaires or even interviews with individuals or groups. The
information is mainly collected for the purpose of understanding their expectations of the
products.

This would help in validating findings from secondary sources and help in understanding
the topic much better.

Primary Research was conducted via telephonic and face to face interaction with the
clients.

Secondary Research

It involves summarization, collation or synthesis of existing research from journals or

research paper/reports. The purpose of this research is to understand the idea about the
domestic manufacturing in the medical device industry and the role of government in in
the growth of this industry.

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 2. INTRODUCTION TO THE MEDICAL DEVICE
INDUSTRY IN INDIA

2.1 ABOUT THE MEDICAL DEVICE MARKET IN INDIA

The medical device market in India is valued at USD 4.9 Billion, growing at a CAGR of
around 17% over the past 5 years. In the coming decade it experience double digit growth
at CAGR of 15%.

India is one the top 20 markets for medical devices in the world and is the 4th biggest
player in Asia, after Japan, China and South Korea. Increase in healthcare spending,
growth of insurance sector and the un-served population are the key driving forces for its
growth.

The industry is still fragmented; however it is still dominated by large Multi-National

Corporations. 70% of this sector is mostly driven by imports. Around 30% of the
domestically manufactured devices are exported, with consumables and disposables
having the largest share. There are around 800 medical device manufacturers in India,
with 70-80 of them having a turnover exceeding INR 500 million. The multi-national
companies dominate this market in high end products, especially in diagnostic equipment
and instruments, with domestic player having a noticeable presence in the low-priced,
high volume segments. Companies mainly, Biocon, Opto Circuits, Perfint and Skanray
have aggressively capitalized on opportunities and launched newer products. There
companies are mostly driven to create new markets.

Currently, this sector is highly unregulated, with only 14 products notified and regulated
as medical devices. The government is in the process of taking steps to strengthen the
regulatory and policy framework, infrastructure, R&D and skill development. This will
boost the industry in the long run.

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FIGURE 1: HEALTH-CARE MARKET IN INDIA BY MARKET SIZE

Health Care Market

3000

2500

2000
USD Billion
1500

1000

500

0
USA Japan China Brazil India

Source: IBEF Healthcare Report 2015, SKP analysis

FIGURE 2: DISTRIBUTION OF THE HEALTHCARE INDUSTRY IN INDIA

India Healthcare Sector USD 80 Billion

6% 3%

14% Hospitals
Pharmaceuticals
Medical Devices
Diagnostics

77%

Source: IBEF Healthcare Report 2015

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FIGURE 3: THE INDIAN MEDICAL DEVICE SECTOR

Indian Medical Device Sector - USD 4 Billion

13%
Equipment and
Instruments
7%
Consumables and
Disposables
Implants
53% Patient Aid

27%

Source: IBEF Healthcare Report 2015, SKP analysis

2.2 Industry Structure

- The medical device industry in India is characterized by high import dependency and
the domestic industry is highly fragmented
- Imported goods are preferred over domestic manufacturing mainly due to inverted
duty structure as well as lack of regulatory framework

FIGURE 4: IMPORTS VS DOMESTIC MANUFACTURING

Patient Aids 20% 80%

Implants 25% 75%

Indigneous Sales
Imports
Equipment 10% 90%

Consumables 60% 40%

Source: Beroe Inc 2015

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2.3 DISTRIBTION OF INCOME AMONG THE MEDICAL
DEVICE MANUFACTURERS
FIGURE 5: HIGHLY FRAGMENTED DOMESTIC INDUSTRY

10%

25% Less than INR 100 Million

INR 100-500 Million
> INR 500 Million

65%

Source: Association of Indian Medical Device Industry (AIMED) 2016

- The 65% share in the above pie chart indicates that the domestic manufacturers of
medical devices are highly fragmented.
- And totally there are about 800 medical manufacturers in India
- With upcoming changes in the regulatory and policy framework, inherent growth
potential of this industry, this sector is expected to undergo a phase of consolidation

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3. USE OF MEDICAL GRADE ADHESIVES IN MEDICAL
DEVICES

3.1 ABOUT ADHESIVES

It refers to any substance applies to one surface or both surfaces of two separate items that
binds them together and resists their separation. The purpose of adhesives is replacing
binding techniques such as sewing, mechanical fastening, thermal bonding, etc. These
include the ability to bind different materials together, to distribute stress more efficiently
across the joint, the cost effectiveness of an easily mechanized process, an improvement
in aesthetic design and increased design flexibility.

3.2 SCOPE OF MEDICAL GRADE ADHESIVES IN MEDICAL

DEVICES

- Over the past few decades, adhesives have replaced many fastening systems in the
assembly of medical devices.
- It comes in various forms being structural, non, structural and pressure sensitive
adhesives to meet needs of different target groups of the medical devices
- Companies like 3M has done the necessary clinical testing to ensure the adhesives do
not cause any sort of harm to the skin.
- The problems addressed are mentioned in the below diagram

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TABLE 1: PROBLEM, PHEMOMENONS AND PROBABLE CAUSES GENERALLY
ASSOCIATED WITH ADHESIVES

3.3 BENEFITS OF USING MEDICAL GRADE ADHESIVES

- The bond is strong and uniform

- Preventing any potential corrosion and improves durability
- The stress distribution is uniform on the bonded surface.
- Also, its bonds on the skin immediately.
- It has no form side effects on the skin
- It can be even used on babies of 3 month old and above
- It can be a cost effective for medical device manufacturers so that their devices can
easily be used to stick to skin
- Ability to disassemble if desired, depending on adhesive selection

3.4 CATEGORIES OF MEDICAL GRADE ADHESIVES

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FIGURE 6: TYPES OF MEDICAL GRADE ADHESIVES AS PER THEIR
DURATION OF USAGE ON THE SKIN

Adhesive Categories

- Stick to skin: 3M medical adhesives are designed to be “skin friendly” where the
devices are attached to the patients. It includes foam tapes, nonwoven and woven
tapes. Hydrocolloids; and polyurethanes.
- Stick to device: Adhesives for the construction of devices made from plastic films,
foams, fabrics, including treated fabrics.
- Bioassay compatible: Diagnostic Tapes and spacers that minimize the potential for
chemical interference, as well as aid in the manufacture and use of the medical device.
- Structured materials: Precisely shaped, micro-replicated surface structures or
channels are incorporated into substrates to provide a new, closely controlled
dimension of physical, chemical and optical properties
- Microfluidic Solutions: Hydrophilic fluid transport technologies for fast and efficient
spreading of a liquid sample through the device
- Membranes: Porous films and membranes with the size and spacing of pores
engineered to capture particles or to ensure that samples flow at the right rate.
- Flexible Circuits: It helps in improving precision and accuracy of diagnostic devices.

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FIGURE 7: VISUALS OF DEPECTING THE LAYERS OF COATING IN MEDICAL
GRADE ADHESIVES

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FIGURE 8: VISUALS DEPICTING THE ROLE OF MEDICAL GRADE ADHESIVES
IN MEDICAL DEVICES

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4. INTRODUCTION TO THE COMPANY

4.1 ABOUT 3M INDIA

3M India is the subsidiary company of 3M in USA, it is a NSE/BSE listed company.3M,
USA owns about 75% equity in 3M India and is a diversified technology and science
company with presence in the following businesses

- Industrial
Industrial segment services a broad range of markets, such as automotive original
equipment manufacturer(OEM) and automotive aftermarket (auto body shops and
retail), electronics, appliance, paper and printing, packaging, food and beverage, and
construction. Its products include tapes, a wide variety of coated, non-woven and
bonded abrasives, adhesives, advanced ceramics, sealants, speciality material, closure
system for personal hygiene products, acoustic system products, and components and
products that are used in the manufacture, repair and maintenance of automotive,
marine, aircraft and speciality vehicles.

Major industrial products include vinyl, polyester, foil and speciality industrial tapes
and adhesives; Scotch Making Tape, Scotch Filament Tape and Scotch packaging
tape; packaging equipment; 3M VHB Bonding Tapes; conductive low surface
sealants, hot melt, spray and structural adhesives; reclosable fasteners; label materials
for durable goods; and; coated, nonwoven and microstructured surface finishing and
grinding abrasives for the industrial market. Other industrial products include
fluroelastomers for seals, tubes and gaskets in engines.

- Health care
It caters to markets that include hospitals, clinics, dental and orthodontic practitioners,
processed food manufacturers, medical device manufacturers and pharmaceutical
companies. The products are medical and surgical supplies, skin & wound care and
infection prevention & solutions, drug delivery systems, dental and orthodontic
products and food safety products.

- Consumer
It serves consumer retail, modern trade, office retail, and the pharmacy channel. The
products in this segment include office supply products, stationery products, home
care products, protective material products, and consumer health care products. Major
consumer products include Scotch brands products such as tapes, glue stick, Post it
stick notes. Homecare products including Scotch-Brite, Nexcare products Hot/Cold
pack, band aid and adhesive band aids.

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- Safety and Graphics
The products include traffic safety and security products, border security solution,
public safety & identity management solutions; commercial graphic sheeting &
systems; architectural surface & lighting solutions.

- Energy
3M here offers infrastructure protection products, like special coating products for
steel pipelines, associated fitting and structures used in oil, gas, water, industrial and
construction materials.

It also offers products related wind and solar energy, in other words products
solutions. Such as films, tapes, coatings, encapsulants and adhesives that help to
reduce the cost of energy generation.

Most of its products involve expertise in product development, manufacturing and

marketing and are subject to competition from products manufactured and sold by other
technologically oriented companies.

The company has manufacturing facilities in Bangalore, Ahmedabad, and Pune and has a
R&D Centre in Bangalore. As of 31st March 2016, it has employee strength of 1388
personnel.

3M products are sold through numerous distribution channels, including directly to users
and through numerous wholesalers, retailers, converters, distributors and dealers in a wide
variety of trades in many countries of the world.

4.2 Vision

3M is a science and technology that not only captures but creates new markets. For
decades scientists and engineers have developed products for the purpose of problem
solving.

Its purpose is to enhance the value of human life each day. The mission of 3M gives:To
improve every life through innovative giving in education, community and the
environment mirroring the corporate vision:

- 3M Technology Advancing Every Company

- 3M Products Enhancing Every Home
- 3M Innovation Improving Every Life

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4.3 MARKETING MIX OF 3M INDIA
Product-

3M India offers a large portfolio of products catering to different category of customers

under different brands names, the types of products sold are

- Industrial
- Consumer
- Safety and Graphics
- Health care
- Energy

As a part of my internship, the product that I deal with is medical grade adhesives as a
part of the 3M India healthcare division

Place-

3M India caters to markets not only in India, but also catering to markets in Middle East
and South East Asian countries.

The project I deal with caters only in Bangalore markets since the medical adhesives is a
Greenfield project for the health care division and also there is limited manpower to
support this project. The medical grade adhesives are import from U.S.A, i.e. 3M (parent
company of 3M India) to be sold to the medical device manufacturers.

Price-

Pricing strategy of 3M is categorized as competitive and value based pricing.

Promotion

- As mentioned earlier 3M is a sciences and technology company with motto to save

live, save resources, save energy and improve productive efficiency, through which
brand image is developed, automatically promoting its products.
- 3M India promotes its products through trade fairs, dealerships with wholesalers and
retailers
- The company’s products are mostly solution driven, so collaborates with businesses to
deliver solutions to their problems by offering their products
- Via the healthcare division it has tie-ups with hospitals, clinics and dentists to sell
their products to the consumers.
- Also, through cold calling potential customers are approached as well to the sell the
product.

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4.4 SWOT ANALYSIS OF 3M INDIA
Strengths

- 3M India has got a good R&D team for its product development
- It can customize its products according to variety as well as shape and size to suit
customers’ demands
- It is a well-recognized brand in India for its brands of products be it health-care
related and consumables etc.
- 3M is recognized for its high standard products
- It has a strong distribution and sales network

Weaknesses

- Most of its products have a high price label

Opportunities

- 3M has a competitive cost position globally and well-crafted business strategies has
helped it retain its market position
- The general public has a good image of 3M to create innovative products and provide
customers with the same through collaborations
- The company is not only into manufacturing and R&D but also has efficient
marketing teams to promote its products for further growth.
- Government policy like Make in India which will boost domestic manufacturing, will
also help its B2B model grow to aid the domestic manufacturers.

Threats

- Company operating in highly competitive environment will also exert pressure on top
line and bottom line.
- Rupee Depreciation will make imports costlier for 3M India from its parent company
in the USA, to sell its products in India.
- Also, high commodity prices can also cause increase in cost of 3M products which
can effects its affordability.
- Customer preferences change over time which may affect its revenue growth

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 5. STEPS INVOLVED IN CLIENT ACQUISITION FOR 3M
INDIA

- Step 1: Understanding the medical devices markets through reports and journals
- Step 2: Use of STP Analysis
- Step 3: Making a list of medical device manufacturers in Bangalore and
understanding their products

STEP 1: UNDERSTANDING THE MEDICAL DEVICE MARKETS

- To review the journals and reports by All India Medical Association, Delloite and
SKF India to understand the industry
- To understand the growth of the domestic industry and their products
- To understand how it the domestic industry competes with the imported products
- Also under the growth of this industry over the present and future periods.

STEP 2: USE OF STP ANALYSIS

SEGMENTATION

- Location: Bangalore City

- Target Audience: Medical Device Manufacturers

TARGETING

- Target medical devices manufacturers who manufacture devices for external uses and
not devices which are intrusive in nature like Catheters and Stents.
- Target devices which use sensors which require adhesive to be stuck to the skin only.

POSITIONING

- The medical grade adhesives are of high standards meaning sold at higher cost.
- It is sold under various varieties to various audiences, like separate adhesives for
athletes and for kids

STEP 3: MAKING A LIST OF MEDICAL DEVICE MANUFACTURER IN BANGALORE

- Through reports by SKF India a list of clients are made

- After which search engines like Google and Justdial are used make the list of these
clients and their contact details
- Also, their websites are gone through to understand their product portfolio and how
medical grade adhesives can play a role in their products

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 6. RESULTS OBTAINED TILL DATE AND FURTHER
ACTION PLAN

6.1 RESULTS OBTAINED

The following table gives the data regarding the results/targets achieved till April 11th 2016.

- Around a list of 25 client calls were made

- Around 4 leads were generated
- Out of which 19 clients require a mail for further decision making

6.2 ACTION PLAN

- Further remaining period of the internship will be follow up the clients after drafting
the mail to them about the details of the medical grade adhesives.
- Recording customer feedback if any

6.3 SCHEDULE

- Submission of Interim Report 13th April 2017

- Client appointments and interactions 14th April to 21st April
- Client searching and finalizing order 22nd April to 30th April
- Project Completion 1st May to 10th May

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REFERENCES
Deloitte and Health Federation of India, 2016. Medical Devices, Making in India - A Leap for Indian
Healthcare, New Delhi: Deloitte Touche Tohmatsu LLP India.

Godbey, Kris;3M Healthcare, 2014. Wearable Sensors, St Paul: 3M Critical & Chronic Care
Solutions Division.

Google, 2015. List of Medical Device Manufacuturers in Bangalore. [Online]

Available at: https://www.google.co.in/?
gfe_rd=cr&ei=FyTJWMbsPM2B2ATQ9peICw#q=list+of+medical+device+manufacturers+in+banga
lore&*
[Accessed March 2016].

SKP Business Consulting LLP, 2016. The Medical Device Industry in India, Mumbai: SKP Business
Consulting LLP.

Annual Report of 3M India Ltd 2016.