Indian Healthcare Riding Strong on High Value Private Equity Investment

Indian Healthcare Riding Strong on High Value Private Equity Investment

WWW.QUADRIACAPITAL.COM

Global mergers and acquisitions (M&A) activity declined to a three-year low in 2020, as companies fought with the financial fallout of the COVID-19 pandemic, even as deal-making came roaring back in the second half.

The value of M&A globally dropped 5% year-onyear to $3.6 trillion, the lowest since 2017, according to a recent report. Despite such global fluctuations, however, the environment in India remains positively strong, with healthcare positioned as a clear bright spot for investors.

WWW.QUADRIACAPITAL.COM

WWW.QUADRIACAPITAL.COM

According to a report, 2020 was a record year for private equity investment in the healthcare and life sciences segment. Pharmaceuticals accounted for a majority of the $2.5 billion invested in this sector. There are several factors behind this outstanding influx of investments in Indian healthcare. For one, the size of the opportunity is enormous: India’s healthcare industry is expected to reach over $372 billion by 2022. Much of India’s primary healthcare remains unorganized, which presents opportunities across the board.

The rise of India’s middle class, willing and able to afford better healthcare will continue to drive demand upwards for improved health services, particularly in the larger cities. But it might take some time for consumers to shift from their trusted family doctors to branded hospital chains.

WWW.QUADRIACAPITAL.COM

The investment-friendly environment in India, with no caps to FDI in healthcare, also allows for opportunities for acquisitions. This has been a popular approach with growing buyouts of smaller healthcare players.

Favorable demographics, rapid growth prospects, and medical tourism are also contributing factors for attracting investment.

Areas of healthcare that is likely to see future PE investments include Innovation via new healthcare delivery models, single-specialty clinics and daycare hospital models; crossborder collaborations; distribution infrastructure and delivery models; and manufacturing.

WWW.QUADRIACAPITAL.COM

India is experiencing a growing shortage of government-run hospitals, doctors, and equipment. Private investment is essential to fill in the gaps. The country has the potential to become the ‘hospital ‘for the world by providing world-class healthcare to the global community.

However, the government needs to develop a comprehensive healthcare policy, keeping in mind that the small clinics and nursing homes are the backbones of the country’s primary and secondary healthcare.

WWW.QUADRIACAPITAL.COM

Contact Us

Private Equity Investment by Quadria Capital India Level 2, The Crescent, Lado Sarai, Mehrauli New Delhi - 110030

Singapore 11-A, Stanley Street, Singapore - 068730 Phone: +65 6805 9699

Phone: +91-11-49539900

Email: operations@quadriacapital.com Website: www.quadriacapital.com Follow Us

WWW.QUADRIACAPITAL.COM