If there’s been a cheerful sector, impulsive employment sources and revenue genesis for India, it can be healthcare sector and there is no doubt within it! With a sought after for healthcare services in India, rising the requirement of innovative healthcare, medical care bills facilities, medical tourism while stating governments, Government of India concentrating for health care evolutions, the general sector has become repelling the project market, while doing so as others have recede and progressed freely. This week updates describe Indian healthcare – Market size, investments, Government Initiatives and challenges.
Market Size:
The overall Indian healthcare publication rack worth around US$ 100 billion which is expected to build to US$ 280 billion by 2020, a Compound Annual Growth Rate (CAGR) of 22.9 %. Healthcare delivery, which include: Hospitals, Nursing homes, Diagnostics centers and pharmaceuticals, constitutes 65 % of the entire market. The Healthcare Information Technology (Health IT) market that is valued at US$ 1 billion currently is likely to grow 1.five times by 2020.
Deloitte Touche Tohmatsu India has predicted by purchasing increased digital adoption, the Indian healthcare market, that is worth around US$ 100 billion, will more than likely grow with a CAGR of 23 % to US$ 280 billion by 2020.
Over 80 % in the antiretroviral drugs used globally to combat AIDS (Acquired Immuno Deficiency Syndrome) are given by Indian pharmaceutical firms.
There is often a significant scope for raising medical treatment services given that healthcare spending to be a percentage of Gross Domestic Product (GDP) is rising. Rural India, which makes up over 70 % in the population, is placed to emerge as being a potential demand source.
India requires 600,000 to 700,000 additional beds in the next 5-6 years, suggestive of an investment opportunity of US$ 25-30 billion. Given this requirement for capital, the quantity of transactions within the healthcare space is supposed to witness an increase in forseeable future. The average investment size by private equity finance funds in healthcare chains has increased to US$ 20-30 million from US$ 5-15 million.
A total of 3,598 hospitals and 25,723 dispensaries across the nation offer AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy) treatment, thus ensuring accessibility of alternative medicine and treatment to those.
The Indian medical tourism information mill pegged at US$ 3 billion yearly, with tourist arrivals estimated at 230,000. The Indian medical tourism industry is supposed to reach US$ 6 billion by 2018, with the volume of people arriving from the country for medical therapy set to double in the next 4 years. With greater volume of hospitals getting accredited and receiving recognition, and greater awareness around the need to develop their quality to fulfill international standards.
Investments from the Sector:
The hospital and diagnostic centers attracted Foreign Direct Investment (FDI) worth US$ 3.59 billion between April 2000 and March 2016, in line with data released because of the Department of Industrial Policy and Promotion (DIPP).
Some from the major investments within the Indian medical industry are as follows:
Cisco Systems Inc has applied for an agreement with Narayana Health (Bengaluru), to offer affordable specialty healthcare services to patients remotely in several parts in the country having its Virtual Expertise Digital Solution.
TPG Growth, the rise equity investment platform of TPG Global, has acquired a big part stake in Rhea Healthcare, which runs a series of mother and nursery centres in the brand Motherhood, for Rs 220 crore (US$ 33 million).
CureFit, a healthcare platform started by has raised US$ 15 million from Accel Partners, IDG Ventures and Kalaari Capital within the day of the company’s inception.
Aster DM Healthcare (headquartered in Dubai), promises to invest Rs 600 crore (US$ 88.94 million) in a variety of Kerala-based healthcare projects on the next 36 months.
Aster DM Healthcare, a Dubai-based healthcare conglomerate, has acquired 25 % stake in Ramesh Hospitals, a multispecialty chain headquartered in Vijayawada, in a very deal worth Rs 110 crore (US$ 16.31 million).
AddressHealth, a primary healthcare network, has raised US$ 1.5 million in series A round of funding led by Gray Matters Capital, which is to be used to expand its kind of school-based neighbourhood clinics and school health programmes in Bengaluru.
PurpleHealth.com, be sure you health and wellness platform, which aims to supply a seamless interface to consumers to choose dieticians, has raised US$ 100,000 from technology investor Katabole Technology Venture.
Versante Software Technologies, an Indian subsidiary of US-based IT consulting and software engineering services company Versante Technologies LLC, is within the process of raising US$ a million in its first round of external funding by March 2016, the proceeds that would be used in initial promotion, and pan-India marketing and distribution of hand-held and portable patient care devices.
Abraaj Group, a Dubai based Private Equity (PE) investor, is scheduled to buy many stake in a Indian firm Quality CARE India Ltd, which runs CARE Hospitals.
Qatar-based Non-resident Indian’s (NRI) including physicians and businessmen, are preparing to set up a large world-class healthcare project in Kochi worth Rs 1,300 crore (US$ 192.71 million)
American multinational technology and consulting corporation, IBM has announced that Manipal Hospitals’ corporate and teaching facilities will adopt ‘Watson for Oncology’, a cognitive computing platform trained by Memorial Sloan-Kettering that analyses data to spot evidence-based treatments, helping oncologists to produce cancer patients with individualised healthcare.
Apollo Hospitals Enterprise (AHEL) promises to add another 2,000 beds above the next two financial years, in a cost of around Rs 1,500 crore (US$ 222.36 million).
Malaysia-based IHH Healthcare Berhad has agreed to purchase 73.4 % stake in Global Hospitals Group, India’s fourth-largest healthcare network, for Rs 1,284 crore US$ 192.84 million.
Temasek Holdings Pte Limited acquired the full 17.74 % stake of Punj Lloyd Limited in Global Health Private Limited, which owns and operates the Medanta Super Specialty Hospital in Gurgaon.