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.
In the ever-evolving healthcare landscape, digital transformation is at the forefront, with telemedicine and artificial intelligence driving unprecedented innovation. These breakthroughs are not just reshaping healthcare delivery but also making it more accessible worldwide. As these pioneering advancements gain momentum, is global healthcare on the brink of transformative breakthroughs that will set new standards for accessibility and quality?
Large private investors have struck deals in both multi-speciality and single-speciality hospitals. What are the learnings from past investments in the two sides of the healthcare services arena? Will we see single speciality chains also become part of larger multi-speciality chains in the future?
The next big kicker for healthcare business lies in single-speciality hospitals and specialty clinics, from nephrology to IVF, eye-care to dental care, dermatology and more. How does the growth opportunity look for different segments within healthcare?
The Indian diagnostics sector has seen the larger players slowly taking market share from the neighbourhood shops. What is the next frontier for diagnostics firms? Are there newer pathology practice areas on the drawing board or inorganic expansion to go deeper the only way forward?
Traditionally, foreign medtech majors have dominated the length and breadth of medical devices business in India. Despite emergence of few local champions we have a long way to go for creating medtech devices for the vast population with local nuances and conditions. Where are we in the evolution cycle? What more would it take than the National Medical Devices Policy of last year to make it take off?
E-pharmacies have become an additional channel to reach to the patients. In a country where a medicine shop is around every nook and corner, how have e-pharmacies scaled up and how can they move up further in the value chain catering to the patient?
India has taken advantage of China+1 policy in tapping into the growing global demand for APIs. However, there is a scope for further improvement. What are the to-dos for Indian companies to make a bigger splash in the global API market?
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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