NEW DELHI: Deal-making in India’s healthcare sector has surged in recent years, with hospitals now commanding the largest share of foreign direct investment (FDI) within the sector. In FY24, hospitals accounted for 50% of the FDI in total healthcare, translating to $1.5 billion. This marks a significant increase, as the share of hospitals in healthcare FDI has more than doubled from 24% in FY21, and has been rising from 43% in FY20, underscoring their growing prominence.
The trend also reflects a strengthening investor preference for hospitals, alongside the traditionally favoured pharmaceuticals sector.
Historically, the pharmaceuticals sector, including APIs (active pharmaceutical ingredients), has been the investor favourite, attracting multi-billion-dollar deals. However, post-Covid, the hospital and diagnostics sector has come into the spotlight, drawing a wave of investors and culminating in top-dollar buyouts of major chains such as Manipal and Max. Last week, Aster DM Healthcare announced its decision to merge with Quality Care India.
“Hospitals have been at the centre of PE interest over the last few months. The size of the Indian market, relatively underserved markets outside the urban areas, high incidence of disease burden and growth in insurance (both public and private), will continue to fuel growth. Given the demand, there is still a long road for growth. Hence the optimism,” Sujay Shetty, global health industries advisory leader, PwC India said. Read more
Source: Times of India