18 June 2016 : 0930 Hrs : The Taj Gateway, Kolkata
  • healthcare east
  • healthcare east
  • healthcare east
  • healthcare east
  • healthcare east
  • healthcare east
  • healthcare east
  • healthcare east
About the Program

18 June 2016 : 0930 Hrs : The Taj Gateway, Kolkata

Healthcare industry in India is at a point of inflexion in terms of growth and funding agencies are one of the critical agents for giving a big push to the healthcare sector in India, including Eastern Region. Given the enormous size of the sector and the fast pace it is growing, healthcare industry requires active participation from venture capitalists, private equities and other funding agencies.

The Indian healthcare sector is estimated to reach US$ 100 billion by 2015, growing 20 per cent year-on-year (y-o-y), as per rating agency Fitch. The industry is expected to touch US$ 280 billion by 2020, on the back of increasing demand for specialised and quality healthcare facilities.

India is the most competitive destination with advantages of lower cost and sophisticated treatments."India is a very important market for many reasons. The government continues to invest in healthcare. Private investors see that healthcare is expanding across the country. There is a growth opportunity and they continue to invest very much in India.

Market Size

Private equity (PE) and venture capital (VC) investments in the healthcare industry in India are increasing rapidly. In 2012, the industry absorbed US$ 1.2 billion across 48 deals, according to research firm Venture Intelligence.

The hospital and diagnostic centre in India has attracted foreign direct investment (FDI) worth US$ 1,542.35 million, while drugs & pharmaceutical and medical & surgical appliances industry has registered FDI worth US$ 9,783.31 million and US$ 584.14 million, respectively during April 2000 to December 2012, according to data provided by Department of Industrial Policy and Promotion (DIPP).

Indian pharmaceutical industry is projected to show double-digit growth in near future owing to a rise in pharmaceutical outsourcing and rising investments by multinational companies, as per RNCOS report titled 'Indian Pharma Sector Forecast 2014'.The report highlighted that focus of the industry will shift towards capitalising the potential of tier-III and rural areas. Emerging sectors, such as bio-generics and pharma packaging will also pave way for the pharmaceutical market to continue its upward trend during the forecast period (FY 2012- FY 2014).

Trends and Investments

India's existing economic prosperity has opened the door for a number of healthy investment opportunities, especially in the field of medicine - the most attractive being the pharmaceuticals, healthcare delivery and medical equipment sectors. A close look at the Indian healthcare industry reveals a surge of activity. This is definitely the beginning of what is foreseen as a rapid growth phase. Emerging segments like single-specialty hospital chains, diagnostic chains, day care centers and medical device manufacturers are set to draw in a significant amount of private equity (PE). PE investors are of the opinion that the healthcare sector driven by favorable demographics, an ageing population, growing lifestyle-related diseases - such as cardio vascular diseases (CVDs) - obesity, diabetes and cancer, provides an ideal platform for investment. Even more so given the increasing affordability for quality healthcare, growing medical insurance penetration, increasing medical tourism and infrastructure have been quite alluring from an investment point of viewFurther, the hospital services market, which represents one of the most important segments of the Indian healthcare industry, is expected to be worth US$ 81.2 billion by 2015, as per a RNCOS report.

Medical Tourism

Medical tourism industry is pegged at US$ 1 billion per annum, growing at around 18 per cent and is expected to touch US$ 2 billion by 2015.

India attracts patients mostly from Africa, CIS countries, Gulf and SAARC nations, Pakistan, Bangladesh and Myanmar, who come mainly for organ transplant, treatment of orthopedic, cardiac and oncology problems.

Road Ahead

Rising demand from the growing middle-class in India's large cities is fuelling growth in private sector healthcare. Large national and State Government programmes will spur growth along the primary (and secondary) care sector and public health domain

In addition, there is substantial demand for high-quality and specialty healthcare services in tier-II and tier-III cities. All these factors are creating huge demand for healthcare services in the country.

References: Department of Industrial Policy and Promotion (DIPP), Union Budget 2012-13, RNCOS Reports, Media Reports, Press Information Bureau (PIB)

Why is healthcare one of the key focus areas for most of India’s private equity capital today? What are the different businesses that are PE fundable? What do private equity investors look for? What are the different forms of innovation and differentiation in healthcare companies that interest an investor? How can an investor-promoter partnership add value to a healthcare business? What are the key aspects in a company that determine business valuation? What are the various PE-exit routes for this sector?

Against this backdrop CII is organizing “ Evolving Healthcare Investment landscape- A conference on scope of Venture capital & PE funds, Debt fund and Angel fund in Healthcare “ in Kolkata to bring together stakeholders spanning diverse domains of Healthcare to deliberate on the issues of investment opportunities in healthcare.