As the most populous nation in the world, India offers a natural moat for two set of industries to flourish irrespective of what happens in the rest of the world. One deals with consumer products and services resulting in the strong domestic consumption theme. The other is healthcare, as the same set of humanity needs to remain healthy on a daily basis.
As the demographic profile of the country changes from a large proportion of youngsters to an ever increasing size of geriatric population due to better life expectancy, healthcare facilities and the ability of people to afford proper care, it also increases the opportunity set for the industry at large.
This is true for all the key segments of the bigger healthcare pie- diagnostics; medicines/pharma; healthcare delivery and medtech or medical devices.
The last few years has seen an immense growth in healthcare delivery business as against the pharmaceuticals pack that was more dependent on lucrative overseas markets for its success. Entry of several hospitals and diagnostics companies in the public domain has increased the opportunity set for investors looking at the sector.
Indeed, the last one year has seen how healthcare is breaking out of its slow and steady growth mode. The 99-stock S&B BSE Healthcare index has shot up 54% in the last twelve months, over twice the 20-25% returns by benchmark indices Sensex and Nifty.
It is not just public market investors who have got attracted to the sector. The big ticket dealmaking in the sector last year also opened a window for further consolidation and a path for bigger growth path.
With four PE deals worth $1 billion or more, all in the healthcare delivery business, and one billion-dollar plus M&A in the pharma side, healthcare sector was alive and kicking in an otherwise slow year on dealstreet, as per VCCEdge.
Looking ahead, investor interest is poised to persist in the biosimilar and Active Pharmaceutical Ingredient (API) segments of the pharma sector. The trend of consolidation is expected to continue in the hospitals segment, while emerging sub-segments such as healthtech, wellness, and medical devices are increasingly capturing PE interest.
To delve deeper into the burgeoning investment opportunities in India's healthcare sector and explore strategies to maximize potential, VCCircle is delighted to announce its upcoming Healthcare Summit inIndia.
VCC Events opens up the avenues for participation. Join hands to be a part of India’s largest gathering of alternative investments leaders, industry stakeholders and Asia’s influential limited partners, general partners and marquee advisors. Your chance to actively participate and augment yourself as thought leaders.
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