Introduction
The Indian medical device market is growing rapidly and is expected to reach $50 billion by the end of 2025. This creates a huge opportunity not just for medical device manufacturers but for distributors as well. Being successful in India is not only about getting your product approved, but also finding the right distributor in India. Morulaa’s medical device distributor services help manufacturers choose the right distributor and also support in navigating the complex regulatory pathway.
One important point manufacturers need to understand is that regulatory and commercial functions are different domains and typically if kept separate help in market penetration easily. If these two areas get mixed up, it can lead to issues in supply chain management, impacting the smooth flow of products in the country.
The Fragmented Distribution Landscape in India
For manufacturers, the key challenge is to identify which type of distributor best fits their product and long-term sales strategy in India. There are several factors impacting their strategy for India –
- Multinational Corporations – Many MNC’s have their own subsidiaries giving them the competitive advantage of pricing in India
- Pan-India Distributors – Only a few companies have a nationwide reach and a well-established network.
- Regional Distributors – They focus on specific states or cities and cater to a localized hospital network. Typically, distributors are classified into Tier 1, Tier 2, and Tier 3:
- Tier 1 Distributors – Well-equipped, handle larger volumes, and have direct access to major hospitals and healthcare providers.
- Tier 2 and Tier 3 Distributors – Smaller in scale, focusing on local hospitals and clinics with limited reach.
- Tier 1 Distributors – Well-equipped, handle larger volumes, and have direct access to major hospitals and healthcare providers.
How Morulaa Helps Medical Device Manufacturers Find the Right Distributor
At Morulaa, we simplify the process of finding the most suitable distributor for your medical device by following a structured and data-driven approach. Our medical device distributors search services help manufacturers identify the best-fit partners for their product category:
- Access to a Large Distributor Network: We maintain an extensive database of over 7,000 distributors, whom we regularly engage with. Based on your product category, we target the right distributors to help you get connected with the right kind of company.
- Understanding a Distributor’s Product Portfolio: We analyze:
- Which imported medical devices they already work with
- Their experience in handling imported vs. Indian-manufactured devices
- Countries they import from
- The volume of medical devices they bring into India
- Their future vision for expanding their imported product portfolio. Having a distributor experienced in imported devices makes the process easier compared to those who mainly deal with locally manufactured products as their sales team is equipped to sell larger value products.
- Matching Your Product with Their Portfolio: A key factor in distributor selection is portfolio compatibility. We assess whether your device complements their existing product range. For example, if your device is an orthopedic shoulder stabilization system, it makes sense to work with a distributor who already sells imported orthopedic implants and instruments. While it may not be an exact match, the target audience and customer base will be similar, making it easier for them to promote your product.
- Comprehensive Due Diligence and Reporting: Morulaa provides a detailed report covering (Sample report for one distributor as below):
- The regions where the distributor has direct offices
- Number of direct sales representatives
- Current workforce strength
- Financial stability
- Existing partnerships with international manufacturers
- Reasons for their interest in your product
Category | Details |
Key Contact Person | Mr Gupta |
Designation | Marketing and Sales Director |
Email ID | |
Website | |
Address | |
Mobile Number | |
City | Chennai |
Area(s) Location(s) of Operation | Hyderabad, Chennai, Bangalore, Delhi |
Current Business | Needles, Laser Machines, Biopsy Needles |
Major Business Associations | |
No of Employees and Representatives | 150 |
Approx Annual Turnover | $5 Million |
Are they dealing with products similar to ABC Needles? | No |
Additionally, we also help manufacturers understand the market potential for their competitor products in India giving them a rough idea when they negotiate with distributors for the country.
Exhibit 5: Est. EXW Price & YoY Imports for ABC Needles
Why Selection Distributor is Critical
Choosing the wrong distributor can result in lost market opportunities and wasted resources. India is a huge market, serving a population of 1.3 billion people, but your success depends entirely on selecting the right partner. We’ve seen cases where the right distributor selection has led to $1 million+ in sales within the first two years for a product which is extremely niche and initially the manufacturer thought that the market potential is not more than $250,000.
How should a Manufacturer look at India - Registration vs Commercialisation?
Choosing your distributor to act as the importer may seem like an easy solution at first, but it often comes with its own set of challenges. Many manufacturers face issues such as a lack of sufficient regulatory knowledge when taking this approach. Morulaa’s medical device distributor services help overcome these obstacles, allowing manufacturers to retain regulatory control over placing their devices in the Indian market, ensure continued compliance post-market, and have better commercial control over the distributors they select in India.
The Challenges of Appointing Distributors as India Authorized Importers
Is a single distributor capable of effectively representing your products across India? This question often remains unclear in the early stages, as the distributor’s commitment in terms of sales numbers may not be immediately apparent. Manufacturers looking to enter the Indian market with their medical devices frequently face several obstacles when selecting distributors to serve as India Authorized Importers (IAIs). Here are some key challenges manufacturers commonly encounter:
- Complex Registration Process: Indian regulations permit manufacturers to appoint multiple importers, but each importer must secure separate registrations. This can become a complex and time-consuming process, creating a significant administrative burden.
- Challenges in Sharing Technical Documentation: Distributors assuming the role of IAIs need access to your technical documentation to ensure compliance after market entry. Managing and sharing this documentation with multiple distributors can be challenging, leading to potential errors or inconsistencies.
- Knowledge Gaps in Regulatory Compliance: Distributors may not fully understand the regulatory obligations tied to being an IAI. This lack of knowledge can undermine compliance efforts and create regulatory complications
- Conflicts in Distributor Roles: Appointing an IAI among distributors can lead to conflicts due to the differing requirements regarding labeling and customs clearance responsibilities. These conflicts can disrupt the distribution process and hinder market entry.
- Labeling Challenges: Handling labeling for multiple IAIs can become a complex task. This often results in delays and operational inefficiencies, impacting the legal manufacturer’s ability to manage the process smoothly.
Customs Clearance Issues: Dealing with customs clearance for various IAIs can cause significant disruptions in the supply chain. Clearance complications can lead to delays, affecting the timely availability of products.
How should a manufacturer look at India?
Manufacturers should keep their sales and compliance separate. This is purely to ensure that there is no hindrance to their sales in India for several reasons mentioned above. Additionally, if there is a fallout in the distributor agreement, you have the commercial freedom to switch and work with another distributor without losing market share while investing time into a fresh registration. By leveraging medical device distributors search services, manufacturers can identify and partner with the right distributors efficiently, ensuring minimal disruption to their market presence. Once you see strong sales traction, you can consider setting up a local office in India to have more control over your operations.
Conclusion
Finding the right distributor in India is a strategic decision that can make or break your success in the market. At Morulaa, we use data-driven insights and a structured approach to help medical device manufacturers connect with the best distribution partners. If you’re looking to enter the Indian medical device market, let us help you navigate the complexities with our medical device distributors search services and find the right distributor for long-term success.