|Welcome to the June issue of ValueNotes Connect
Demand for healthcare in India has outpaced supply. To put things in perspective – the country has just nine hospital beds per 10,000 population, compared to the global average of 30 beds. A growing middle class, a higher number of cases of lifestyle diseases and a lack of specialty hospitals are some of the factors driving the healthcare sector.
No surprises then why healthcare is the current favourite amongst private equity (PE) firms. According to a recent report, PE investments in India’s healthcare sector touched a record high in 2015 ($1584 million), a 22.45% increase over the previous record of 2013. The average deal size has gone up as well over the years. In addition, investors have had successful exits in the recent past.
Rising hospital fees and an overburdened healthcare delivery system has led to an interesting development in the sector – home-based healthcare. With more than a 100 million people aged over 60, and a tradition where families care for the elderly in their homes, will healthcare at home be the next big trend in India?
Do have a look at our case study where we helped our client formulate a go-to-market strategy for supplying furniture to hospitals in India.
As always, we hope you enjoy reading our newsletter, and we look forward to your comments.