Indian Healthcare Sector: Most Favorable Destination For Equity Investment

Healthcare in India is a large service sector in terms of revenues and is among the fastest-growing healthcare markets worldwide.

The Indian healthcare industry is one of the fastest-growing industries with high participation not only in terms of revenue but also in employment. The Indian healthcare market is anticipated to rank among the top three healthcare markets in the world in terms of incremental growth by the current year. From a market size of US$99 billion in 2015 (as per PwC report), the Indian healthcare sector is expected to grow at 12% CAGR over the next decade due to increasing per capita disposable income, rising urbanization and growing health awareness, rapidly shifting disease pattern from acute to chronic and growth in domestic healthcare infrastructure.

The growth is also fuelled by the aging population, rising healthcare awareness, growing health insurance penetration, raising the government’s focus on providing universal healthcare, and the growing burden of non-communicable diseases (NCDs). Along with these factors, India’s unique value position in the form of low costs, availability of advanced technologies, and skilled workforce are further propelling the medical value travel in the country.

India is steadily becoming a favorable investment destination due to the high economic growth, low-cost labor, and the availability of opportunities in many untapped sectors. Further, the recent government actions to promote the ease of doing business like the relaxation of FDI norms, strengthening of research and development (R&D) in the sector, and strengthening of intellectual property rights (IPR) regime, along with policies promoting the start-up culture, have kindled investments from equity funds in India.

All these factors and recent government helpful policies are responsible for attracting domestic as well as foreign investments from private equity (PE), venture firms, and healthcare players.

Quadria Capital targets long-term capital appreciation through private equity growth capital investments in healthcare companies that have the potential to become a global leader in the healthcare sector. The fund’s investment plan is based on taking advantage of opportunities in the high growth Indian healthcare sector over the next decade.

Based on the above outlook, Quadria Capital pursues an investment strategy that is predicated on high growth consumption and competency themes.

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