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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