Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
The Indian healthcare industry is currently experiencing a surge in private equity investments, as indicated by recent deals amounting to over Rs 27,000 crore within the past two years, as reported by ICRA, a prominent rating agency. Notable transactions involve Manipal Hospitals, Sahyadri Hospitals, ASG Eye Hospital, and Maxivision Eye Hospital, among others. These investments signify a substantial boost to the sector, with specific focus on Manipal Health, where Temasek has invested a staggering Rs 16,400 crore to secure a majority stake.
Of particular interest within the private equity landscape is the eyecare segment, which has attracted significant attention from investors. Remarkably, a substantial Rs 4,000 crore has been directed into these healthcare facilities within the recent months alone. In this context, ASG Hospital witnessed investments of Rs 1,500 crore from General Atlantic and Kedara, while Maxivision Eye Hospital received Rs 1,300 crore from Quadria Capital. Additionally, Dr. Agarwal’s Healthcare also secured Rs 1,050 crore in investments.
Kedara Capital made a notable move by acquiring Olivia skin and hair clinic from Sreyas Holistic Remedies for a substantial sum of $65 million (equivalent to Rs 540 crore). Further diversifying the investment landscape, Mumbai Oncocare Centre, a chain of cancer daycare centers and a unit of Cellcure Cancer Centre, successfully raised $10 million (about Rs 83 crore) through Series A funding, facilitated by Tata Capital Healthcare Fund.
The momentum of private equity participation also triggered several exits by existing players, yielding significant returns. A prominent example is the exit of Everstone Group from Sahyadri Hospitals, which paved the way for the Ontario Teachers’ Pension Plan Board (Ontario Teachers’) to step in as new investors. The Ontario Teachers' investment amounted to around Rs 2,500-2,700 crore, enabling them to secure a majority stake in Sahyadri Hospitals, the largest hospital chain in Maharashtra. Notably, Ontario Teachers' has also committed an additional investment of Rs 750 crore into the Sahyadri Hospitals chain.
The ongoing trend of post-Covid consolidation in the Indian healthcare sector has been shaped by a growing patient preference for higher-quality healthcare services. This shift has triggered numerous standalone hospitals to actively seek integration into larger hospital networks, thus fostering industry consolidation. Manipal Hospitals, for instance, capitalized on this trend by acquiring Columbia Asia Hospital and Vikram Hospital during the pandemic period.
ICRA, a reliable source of industry insights, projects that the Indian hospital sector is in robust health, projecting a healthy revenue growth of 8-10% for FY24. Moreover, the anticipated operating profit margin is estimated to fall within the range of 22-23%.
In line with this optimistic outlook, ICRA's analysis reveals that leading healthcare companies have unveiled ambitious expansion plans. Over the next four years, these firms are poised to add more than 8,400 beds and execute extensive upgradation and refurbishment initiatives, which collectively represent a remarkable 26% increase in capacity compared to levels recorded in March 2023. Encouragingly, the industry's focus on inorganic growth opportunities through mergers and acquisitions could potentially contribute to further incremental bed additions.
ICRA's comprehensive assessment anticipates strong aggregate occupancy rates of 63-65% for FY2024. This prediction is underpinned by factors such as the rising prevalence of non-communicable lifestyle diseases, increasing per capita expenditure on healthcare, heightened awareness levels, expanding health insurance coverage, and a surge in medical tourism volumes. As the Indian healthcare sector continues its upward trajectory, driven by these multifaceted growth drivers, the industry appears poised for sustained expansion and evolution.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
We use cookies to give you the best possible service while using our website, please click accept and carry on browsing if you're happy with this. For more information see our Privacy Policy.
Okay, Got it!This disclaimer ("Disclaimer") is applicable to the entire Site. Upon entering the Site it is recommended that you immediately read the Terms and Conditions and Privacy Policy listed therein. Your continued usage of this Site will indicate your unconditional acceptance of the said Terms and Conditions and Privacy Policy. You hereby agree that Propscience reserves the right to modify at any time, the Terms and Conditions and Privacy Policy governing this Site without prior notification. Your usage of the Site implies that you will be bound by any such modification. You agree and acknowledge that it is your responsibility to periodically visit the Site and stay updated with the Terms and Conditions and Privacy Policy of the Website.
The information contained in this Site has been provided by Propscience for information purposes only. This information does not constitute legal, professional or commercial advice. Communication, content and material within the Site may include photographs and conceptual representations of projects under development. All computer-generated images shown on the Site are only indicative of actual designs and are sourced from third party sites.
The information on this Site may contain certain technical inaccuracies and typographical errors. Any errors or omissions brought to the attention of Propscience will be corrected as soon as possible. The content of this Site is being constantly modified to meet the terms, stipulations and recommendations of the Real Estate Regulation Act, 2016 ("RERA") and rules made thereunder and may vary from the content available as of date. All content may be updated from time to time and may at times be out of date. Propscience accepts no responsibility for keeping the information in this website up to date or any liability whatsoever for any failure to do so.
While every care has been taken to ensure that the content is useful, reliable and accurate, all content and information on the Site is provided on an "as is" and "as available" basis. Propscience does not accept any responsibility or liability with regard to the content, accuracy, legality and reliability of the information provided herein, or, for any loss or damage caused arising directly or indirectly in connection with reliance on the use of such information. No information given under this Site creates a warranty or expands the scope of any warranty that cannot be disclaimed under applicable law.
This Site provides links to other websites owned by third parties. Any reference or mention to third party websites, projects or services is for purely informational purposes only. This information does not constitute either an endorsement or a recommendation. Propscience accepts no responsibility for the content, reliability and information provided on these third-party websites. Propscience will not be held liable for any personal information of data collected by these third parties or for any virus or destructive properties that may be present on these third-party sites.
Your use of the Site is solely at your own risk. You agree and acknowledge that you are solely responsible for any action you take based upon this content and that Propscience is not liable for the same. All details regarding a project/property provided on this Site are updated on the basis of information available from the respective developers/owners/promoters. All such information will not be construed as an advertisement. To find out more about a project / development, please register/contact us to visit the site you are interested in. All decisions taken by you in this regard will be taken independently and Propscience will not be liable for any such loss in connection with the same. This Site is for guidance only. Your use of this Site - including any suggestions set out in the Site and or any use of the resources available on this Site, do not create any professional - client relationship between you and Propscience. Propscience cannot accept you as a client until certain formalities and requirements are met.
We use cookies to give you the best possible service while using our website, please accept it and continue browsing if you're happy with this. For more information see our Privacy Policy