Buzz Archive:
Private Equity Investment in India's Healthcare Industry

by Arjun Sethi, An advisor and angel investor in early stage startups, 11/20/2007

For several years, private equity firms have recognized the profit potential of India's surging economy. They have invested heavily in a variety of industries—notably information technologies (IT) and financial institutions—and the question, not unexpectedly, has arisen: What is the next target for private equity investors in India? The answer may well be India's healthcare system, a sector under increasing scrutiny from savvy equity investors.

Expanding demand for quality healthcare services (a worldwide phenomenon), in conjunction with relaxed government restrictions on infusions of offshore capital, make the sector an attractive environment for foreign investors. In addition, the major players within India's healthcare industry—prominently, Fortis Healthcare, the Wockchardt hospital chain, and Max Healthcare—are currently planning major growth developments, including initial public offerings (IPOs). This week, Arjun Sethi, Senior Strategy Officer, Saset Healthcare:

• Compares India and China as prospective investment venues
• Analyzes India's growing middle class
• Discusses how and why healthcare providers in India are open to foreign investment and the status of the healthcare market