Read the Conversation
Meeting highlights:
- Medline's recent journey into emerging markets: Focus on investing in infrastructure, people, and products, with plans for further expansion.
- Chances in India's healthcare market: India's healthcare payment schemes have evolved over the past few years, but Medline's role is currently centered on the private sector, tapping into the potential of a growing middle class and a booming private hospital sector
- The importance of strong supply chains: Medline is working to de-risk its supply chain, which will lead to cost optimization, an improved go-to-market approach, and positive contributions to the local economy.
- Role of Med-Tech in India: India's MedTech industry has the potential to replicate the success of its pharmaceutical sector. Medline sees a significant opportunity in producing mass-consumable, low-cost medical devices sourced from India, which are essential for daily operations in healthcare facilities.
- Future Outlook for Positive Investments: The Indian market is attractive due to stable legislation, a robust economy, and a skilled workforce - A market set for growth.
EF: Could you elaborate on your priorities for strengthening Medline's position in India’s growing healthcare industry?
GJ: Medline’s journey into emerging markets, particularly India, began recently, driven by key factors such as the country's vast market potential, the growing number of hospitals, and the increasing adoption of international and domestic healthcare standards. A significant turning point was India’s move to regulate medical devices, which previously had minimal oversight. These developments made India a strategic investment destination for us.
We invested in three key areas: infrastructure, products, and people. Around the time of the COVID-19 pandemic, we officially launched operations in India and have since steadily expanded our presence. Notably, India also plays a crucial role in Medline's global supply chain, as we had been sourcing products from the country even before commercial operations began. This strong sourcing presence, coupled with local production of high-quality products, gives us a unique competitive edge in the Indian market. Medline is leveraging this advantage as we move forward.
EF: How do you balance your market focus to ensure your products effectively reach both public and private sectors in India?
GJ: Historically, India's healthcare has been paid out-of-pocket. However, employer-based insurance in the private and government sectors has improved access to quality care. Government schemes like PM-JAY (Ayushman Bharat) have expanded insurance coverage, bringing millions under healthcare access each year. In five years, this could add half a billion people to the insured population, transforming access for those with little to no coverage.
Currently, Medline focuses on the private healthcare sector, where we see strong infrastructure growth and more hospitals. The Indian middle and working classes are increasingly able and willing to invest in high-quality healthcare, making it a key segment for us. While we engage with the government sector in some areas, our primary focus is on private hospitals, which are adopting international clinical practices and accreditations like JCI and NABH that align with our offerings. In the future, we may expand to the public sector as it adopts more advanced clinical practices,
EF: Could you elaborate further on the long-term investment strategy for India?
GJ: One key strategy for Medline in India is recruiting and deploying our own salespeople. While we have a distribution network for logistical support, our primary investment is in building our team, including clinically trained salespeople, and in the future, we may onboard clinical educators.
We have also invested in warehousing capabilities, mirroring our core strengths in the U.S. and globally. By expanding our warehousing capacity in India, we support future growth and handle expected increases over the next three to five years.
Additionally, we leverage local sourcing in India through established operations and collaborations with contract manufacturers. This approach aligns with our global priorities of creating a resilient supply chain and mitigating risks. It benefits both our international operations and our India business, optimizing our go-to-market strategy and reducing customer costs.
EF: Do you have an Indian product line you are preparing for global supply?
GJ: Our sourcing operations are global, and we are aligning international projects with India’s needs. While we do not develop India-specific products, we adhere to strict international standards for quality, sourcing, and compliance.
We ensure all products, regardless of origin, meet the same global standards. Locally sourced products in India adhere to these benchmarks, offering cost savings on customs and freight, making our products more competitive while maintaining quality. Until local manufacturing is fully developed, we will import products from global suppliers. Once local sourcing is optimized, our cost structure and supply chain efficiency will be further enhanced.
EF: How can companies leverage innovation in India, and how is Medline currently utilizing this in its operations within the country?
GJ: One of Medline's key global product categories is non-woven textiles, with India playing a crucial role in sourcing. These textiles, used in many essential healthcare products, present a significant opportunity to optimize our global supply chain. Our product managers, sourcing, and inventory management teams collaborate closely to leverage India’s capabilities.
As a healthcare consumable products company, Medline focuses on essential items for healthcare facilities, such as gloves, which are widely used. We leverage India’s innovation to drive efficiency and scalability in this area.
EF: How is Medline attracting top talent in India, and what steps are you taking to actively develop your workforce?
GJ: In India, we focus on recruiting talent with strong experience in selling products for operating theaters and ICUs. These professionals bring technical expertise and established relationships with key healthcare stakeholders.
We also use global healthcare education programs to offer continuous learning opportunities for healthcare providers in India, ensuring they benefit from international-quality products. This approach strengthens our talent pool and prepares our workforce for future healthcare challenges. By focusing on expertise in our core product areas, we aim to build a solid foundation for long-term success in India.
EF: India is known as the “Pharmacy of the World.” Given its future outlook, what new name would you like to give to the country?
GJ: India has the potential to replicate its success in generic pharmaceuticals within the medical devices and consumables sector. Just as India has become the "pharmacy of the world" for generic medicines, there is a similar opportunity in medical devices and consumables.
India already excels in medical tourism and home healthcare, with further potential in low-cost, high-volume consumable devices. While original research may be limited, India can excel in reverse engineering and smart innovation.
In the next 5 to 10 years, India's medical device sector, particularly in consumables, could at least partly catch up with the pharmaceutical industry in exports, positioning India as a key global player in medical devices.
EF: What opportunities do you see for incentivizing growth in the Indian Medtech sector?
GJ: Recently, India has implemented MDR. It may not be perfect, but India's comprehensive regulatory framework is a significant step forward. Government initiatives such as the medical device policy, the PLI (Production Linked Incentive) scheme, and the "Make in India" initiative are driving local manufacturers to focus on both domestic and global markets.
EF: How can large-scale production companies like Medline help the Indian government meet its environmental goals by 2047 and create more sustainable production practices?
GJ: Medline has a global program for sourcing products with a standard process for social audits, ensuring suppliers comply with ESG (Environmental, Social, and Governance) practices. Only suppliers meeting these criteria are approved. We are committed to minimizing our environmental impact and reducing our carbon footprint across all product lines. This ongoing effort involves both internal initiatives and collaborations with external agencies and industry partners, as collective action is key to achieving sustainability goals.
EF: Throughout your extensive career, what is one achievement you are most proud of, and what future goal do you hope to accomplish?
GJ: Throughout my career, I have worked with reputable brands and companies that foster a positive and impactful culture. Establishing a strong work culture and ethical framework in early-stage companies is crucial. It is essential to cultivate talent that can uphold the organization’s legacy, even without its founders. This is key to effective leadership—ensuring the team embodies the organization's mission and values. I am proud to have worked in environments where I could initiate and scale businesses, seeing continued value from those efforts.
EF: Do you want to share any final message with our readers?
GJ: India is undergoing significant changes, making it a crucial market for companies, especially in healthcare. The country offers attractive opportunities due to stable government policies and a large population with better access than other markets.
Entering the Indian market can be challenging and complex, with some companies finding initial profitability limited. However, it remains a key growth market. Companies need to balance their strategies between profitability in developed markets and growth in emerging ones, with India being a top contender for growth potential.
