A study on new products

available in

India

for

diabetics

Note: Source:

Note: Source: Source: Novo Nordisk

In one generation, the prevalence of diabetes has increased SIX fold

Incidence of Diabetes

Europe
2000: 33.3 Million 2030: 48.0 Million

Asia The Americas

2000: 33.0 Million 2030: 66.8 Million 2000: 81.7 Million 2030: 188.8 Million

The Middle East Africa

2000: 7.0 Million 2030: 18.2 Million 2000: 15.2 Million 2030: 42.6 Million

Australia
2000: 1.0 Million 2030: 1.7 Million

In the year 2000, there were 171 Million diabetics in the world. The number is expected to increase Note: 366 Million by 2030. India, China and United States account for 30% of the worlds diabetic population to
Source: Source: World Health Organization; Grail Research Analysis

Diabetes is most prevalent in the following 10 countries:

India China USA Indonesia Japan Pakistan Russia Brazil Italy Bangladesh

Prevalence of Diabetes
Ranking Country People with Diabetes (MM) Year 2000 31.7 20.8 17.7 People with Diabetes (MM) Year 2030 79.4 42.3 30.3

1
2 3

India
China USA

Note: Source:

It is estimated that India will continue to have the largest number of diabetics in the world, even in 2030

Source: World Health Organization

Rapid urbanization and industrialization leads to lifestyle changes which adversely affect the risk factors associated with diabetes.
Dr A. Ramachandran of Chennais Diabetes Research
Centre and M.V. Hospital For Diabetes

The Major Diabetic Complications

Eyes
(Retinopathy)

Brian and Cerebral Circulation

(Cerebrovascular Disease)

Heart & Coronary Circulation

(Coronary Heart disease)

Kidney
(Nephropathy)

Lower Limbs
(Peripheral Vascular Disease)

Peripheral Nervous System

(Neuropathy)

Various studies have shown that the high

Feet
(Diabetic Foot Ulceration and Amputation)

incidence of diabetes in India is mainly because of sedentary lifestyle, lack of physical activity, obesity, stress and consumption of diets rich in fat, sugar and calories.
Hindustan Times
World Health Organization

Note: Source: Business World; International Diabetes Federation; Hindustan Times; Source:

In areas such as the Middle East and countries in the Pacific region, one out of four deaths for 35-64 year-olds is due to diabetes
Cardiovascular disease is the cause of 50-80% of all deaths among diabetics

Projected Loss in National Income Due to Chronic Diseases (USD Bn)

Loss in 2005 Loss in 2015 Average Annual Loss Income Loss as a % of GDP in 2015

China
Russia India Brazil U.K. Pakistan Canada Nigeria Tanzania

18.0
11.0 8.7 2.7 1.6 1.2 0.5 0.4 0.1

126.0
66.0 54.0 9.3 6.4 6.7 1.5 1.5 0.5

53.5
29.8 23.0 5.1 3.4 3.0 0.9 0.8 0.2

1.2
5.3 1.3 0.5 0.3 1.0 0.2 0.7 0.9

Global spending on diabetes treatment is expected to increase from USD 232 Bn in 2007 to Note: USD 303 Bn in 2025 Source:
Source: Indian Council For Research On International Economic Relations; Novo Nordisk; International Diabetes Federation

Global Market for Diabetes Drugs (USD Bn)

16 14 12 10 8 6 4 2 0 2004
Insulin Oral drugs1

Indian Market for Diabetes Drugs (USD Bn)

0.6 0.5

15.00 13.57
6.83

0.48 0.43
0.104 0.095

USD Bn

USD Bn

5.86

0.4 0.3 0.2 0.1 0

7.70

8.19

0.33

0.38

2005

2007 2
Insulin Oral drugs3

2008E

In 2005, the mean estimated annual cost for diabetes per individual in India was USD 418 Indirect costs, which include measures of productivity and income loss through illness, represented USD 267 per
individual

Direct costs such as drug treatment, check-ups, etc. approximated USD 99 per individual Hospitalization costs were estimated to be USD 51 In the US, diabetics spend an average of USD 13,243 on healthcare every year, well above the estimated annual
healthcare expense of USD 2,560 associated with non-diabetics

The Indian market for oral diabetes treatments is growing at an annual rate of 14%, more than Note: double the 6.3% global growth rate Source:
Note: 1Oral antibiotic drugs; 2Converted to USD using average rate of conversion for the period October 2006-October 2007; 3Oral Hypoglycemic Agents (OHA) Source: The World Diabetes Market, 2005-2011; PwC; The Financial Express; dLife; Global Forum for Health; Centre for Prevention and Health Services

In 2003, there were

189 million diabetics in the world. The projected figure for 2025 is

324 million. And we have reason to believe that the projection is an underestimation.
Prof. Lefebvre, President, International Diabetes Federation

Products

for Diabetes

Sugar-free products are selling the fastest in the health food category In the last two years, the sale of health food has shot up by about 40 percent.
Rajesh Sanklecha, Manager, Nuts n Spices, a department store chain in India

Note: Source: Source: The Hindu; Business Line

 Amul is Indias top brand according to a 2007 Brand Survey1 Amul, which means priceless, is derived from the Sanskrit
word Amoolya

It is a brand of Gujarat Cooperative Milk Marketing Federation

(GCMMF)

GCMMFs 2.6 MM producer members collected 2.38 Bn liters of

milk in 2006-2007, a daily collection average of 6.5 MM liters

In the financial year 2006-2007, GCMMF posted sales of

USD1.05 Bn

Amul ventured into sugar free desserts through Amul Sugar Free Probiotic Frozen Desserts and Note: has now also launched sugar free chocolates aimed specifically at diabetics Source:
Notes: 1Asias Top 1000 Brands Survey by Media, Asian Integrated Media Ltd and Synovate Source: Amul website; Synovate website

 The Saffola brand belongs to

Marico Industries, one of Indias leading FMCG companies, generating 20062007 revenue of USD 380 MM

Saffola launched Atta (Wheat

Print Ad

flour) additives to help control sugar and cholesterol levels

The staple use of Atta is to

make rotis (a type of Indian bread) which is widely used in daily foods all over India

India consumed approximately

40 million tons of Atta in 2004

Note: Source:

Brands like Saffola have launched innovative food additives for sugar management. Variants of this product are also available to help control cholesterol intake.
Source: Saffola website; Marico industries website; Business Line

Source: Saffola website; Marico industries website; Business Line

It is unnerving to find that some 10

year olds are diagnosed with

diabetes. Nouveau Dittique would like to reverse this scenario by introducing tasty and healthy substitutes to the unhealthy foods we are eating today
- Nouveau Dittique Website

Soluble fibers like Galactomannan are believed to help slow

down the conversion of carbohydrates to glucose and hence improve its subsequent absorption

Nouveau Dittiques product portfolio includes offerings geared for diabetics and obese people, Note: ranging from diabetic dietary supplements to sugar-free chocolate Source:
Source: Nouveau Dittique website

 Horlicks, one of Indias leading health food drinks, is a

brand of GlaxoSmithKlines Consumer Healthcare division

In 2004, Horlicks controlled more than half of the Indian

health food drink market1

Horlicks launched two diabetic-friendly products in

September 2005 Horlicks Lite health food drink and Horlicks Lite Bite biscuits

Both products are endorsed and certified by Diabetes

India, the largest body of participating endocrinologists, medical specialists, physicians and researchers interested in the study of diabetes

Horlicks lite health food drink and Horlicks lite Bite biscuits have been formulated for the nutritional Note: needs of adults and are promoted for safe use by diabetics Source:
Note: 1The Economic Times Survey, 2004 Source: GlaxoSmithKline Consumer Healthcare India website

 ICICI Prudential Life Insurance is a joint venture

between Prudential plc, an international financial services group, and ICICI Bank, one of Indias leading financial services companies

ICICI Prudential is ranked second1 among the

insurance sector companies of India

In November 2006, ICICI Prudential launched

Indias first insurance policy specifically tailored to the needs of diabetics

ICICI Prudential currently offers two types of

insurance policies for diabetics:

Diabetes Care: Critical illness insurance policy

for Type 2 diabetics and pre-diabetics

Diabetes Care Plus: Critical illness and death

insurance policy for Type 2 diabetics and prediabetics

With India being termed the Diabetes Capital of the World, insurance companies such as ICICI Note: Prudential have introduced new insurance products specifically tailored to diabetics Source:
Notes: 1According to the Businessworlds Most Respected Company Survey of 2006 Source: ICICI Prudential website; Businessworld; DNA India website

Done

Type 1 Diabetes
Type 1 diabetes is usually diagnosed in children or young
adults and was formerly referred to as juvenile diabetes People suffering from type 1 diabetes either produce very little or no insulin at all Daily injections of insulin are required to manage the disease Some of the symptoms of type 1 diabetes include excessive thirst; constant hunger; excessive urination; weight loss for no reason; rapid, hard breathing; vision changes; drowsiness or exhaustion

Type 2 Diabetes
People suffering from type 2 diabetes are unable to use the insulin produced in
the body effectively It is possible to manage this type of diabetes with lifestyle changes and oral drugs, although insulin may also be required Symptoms of type 2 diabetes are similar to type 1 diabetes, though less obvious Often, people with type 2 diabetes have no symptoms and the disease goes undiagnosed for a long period after its onset

Gestational Diabetes
Gestational diabetes mellitus (GDM) develops during pregnancy and usually
goes away after pregnancy The chances of GDM sufferers developing type 2 diabetes in the future is high

GDM affects around 4% of pregnant women in US every year

Note: Source:

Types of Diabetes

Source: American Diabetes Association; World Health Organization

For More Information Contact:

Grail Research (info@grailresearch.com)

Copyright 2007 by Grail Research, LLC No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photocopying, recording, or otherwise without the permission of Grail Research, LLC