Carl Zeiss is a Euro 4 billion technology company with over 160 years  of  successful innovations  in optics  and  precision technologies. In India, the company focuses on medical and vision care technologies, life science research and industrial solutions. Recently, the company opted for Bangalore to set up its Centre of Application and Research in India. The facility would focus on  India’s high priority disease management challenges, such as  cataract surgery, diabetics related eye diseases and other age related eye care problems. In an interaction over email, Dr Ludwin Monz, president and CEO, Carl Zeiss Meditec AG told Nandita Vijay that  India is an attractive, developing market with access to engineering expertise. Excerpts:
 

How would you describe the growth of medical equipment market for this decade?
Growth in the medical equipment market will be driven by two major factors. One is the ageing population and the other is the demand for  novel technologies in countries. At the moment, it will be difficult to  give a specific growth figure. However, the global population is ageing which will result in an increasing demand for health care services and thus also for medical equipment. Furthermore, the rapidly developing economies will drive the industry  much higher rate than in the old economies. Both factors together will be the basis for healthy growth.


Do you foresee any visible trends that are expected to transform the medical technology industry with newer solutions for diagnostics and therapy?
The macro economic trends  of an ageing society, and emerging markets are looking for better access to health care. This would  result in a need for efficient and effective diagnosis and treatment of age related diseases. Medical technology driven by information technology is a visible trend  which will provide the user the provider economies-of-scale. We are seeing extensive proliferation of information technology embedded in medical technology.

What according to you are the key challenges for sector in the current global situation where the West is looking at the East and these markets look for cost-efficiency and reliability of products from multinationals?
The challenge is to meet the demand of these markets. The specific needs and the solutions to the challenges can only be developed out of these markets. This is why we build up an R&D presence in India.
 

Going by the presence of Carl Zeiss in the markets of Asia, how has the company performed so far in the region?
Carl Zeiss has been in the Indian market for decades. In 1998, we established a direct presence and have grown since then with double digit growth rates per year. Today, we have more than 230 employees in India and have touched  revenues of over  Euro 55 million . Beyond India, the company  has been enjoying similar growth rates also in China and South East Asia.
 

What was the reason for the company to set up the Centre of Applications and Research, in India at Bangalore when it already has a base in South East Asia, where the Malaysian government is wooing the global majors including those from India to set up research and production centres?
India is not only an attractive and rapidly developing market, which Carl  Zeiss would like to serve.  It is also a unique resource of highly qualified engineers, scientists, and physicians. We would like to utilize this resource. Furthermore, the needs of our customers in India are specific. We will develop products that meet these requirements in the Centre of Application and Research. In order to do so, the centre will work closely together with physicians, research institutes and other experts.

Would you be in a position to tell us how much the company has invested in its presence in the markets of Asia / South East Asia?
Carl Zeiss’ investment in Asia /South East Asia is significant. Today, our sales in Asia is more than Euro 500 million. We have built infrastructure in and developed products for the Asian countries. More recently, we have expanded our service and support network.

How much have the factors like the falling Euro and the unstable economic scenario lead the company to look at the emerging markets which are viewed as the growth engines of the future?
Carl Zeiss has always taken a global approach in its more than 160 years history. We started to intensify our activities in the rapidly developing economies of China, India and South East Asia long before the financial crisis. Our new initiative in India is the continuation of this long term endeavour and not a short term reaction on the global economic situation.

Most global medical equipment manufacturers and pharma majors are using their Indian operations as a platform to grow their global business though collaborations or acquisitions or mergers, particularly in emerging markets. For instance, GE and Phillips or even Merck have been in a similar situation. In such a scenario, what is the focus of Carl Zeiss in the region?
The focus of our new Centre of Application and Research will be on developing products for India, China, and South East Asia. However, it is fair to assume, that these products will also find their markets outside of this region, because requirements will be similar.

From the company’s host of clinical solutions spanning dentistry, ENT to spine and radio-therapy, what could be your Bangalore centre’s focus?
The initial focus of the centre of application and research in Bangalore will be on products for diagnosis and treatment of eye diseases. We might expand the scope as we go. We are committed to bring latest medical technology to India. We will learn from the market, its large patient numbers, and the research work which will be valuable for our global business.

What are your five top priorities as CEO of Carl Zeiss Meditec AG?
Let me name three: Firstly, Carl Zeiss Meditec is known for its innovation strength. We have a long history of products that have advanced diagnosis and treatment of diseases. I would like to continue that success story. Secondly, it is a top priority for me to further improve our customer orientation, as their satisfaction and success is our satisfaction and success. Thirdly, in terms of our business development, it will be crucial to further strengthen and extend our presence in the rapidly developing markets of India, China, and South East Asia. The above mentioned initiative in India is part of this.