India is one of the world's most lucrative healthcare markets, and is expanding rapidly, according to latest findings by a report published in February 2012, by market research firm RNCOS. India is the most competitive destination with advantages of lower cost and sophisticated treatments, according to RNCOS report titled ‘Indian Healthcare - New Avenues for Growth'. The report further highlighted that several key trends are backing the growth of India's healthcare sector. Of these, medical city is relatively a new concept that offers immense growth opportunities. Likewise, there is a huge potential for day care surgeries. Almost 60 per cent of all surgeries can be done in a day care mode as the current infrastructure supports.
India will witness the largest number of mergers and acquisitions (M&A) in the pharmaceutical and healthcare sector, according to consulting firm Grant Thornton. A survey conducted across 100 companies has revealed that a fourth of the respondents were optimistic about acquisitions in the pharmaceutical sector.
The hospital and diagnostic centre in India has attracted foreign direct investment (FDI) worth US$ 1,183.04 million, while drugs & pharmaceutical and medical & surgical appliances industry registered FDI worth US$ 9,170.24 million and US$ 514.08 million respectively, during April 2000 to January 2012, according to the data provided by Department of Industrial Policy and Promotion (DIPP).
Trends and Investments
- Sovereign fund Government of Singapore Investment Corporation (GIC) has picked up a minority stake in Vasan Healthcare Enterprise, an eye care chain, for US$ 100 million. Vasan will use the funds to "expand rapidly in new geographies, besides look at acquisitions," as per A M Arun, Chairman, Vasan
- Ranbaxy has announced the opening of its new manufacturing facility at Casablanca, Morocco. "Morocco is one of the important markets and this manufacturing facility further reinforces our commitment to the people of Morocco and the African continent," according to Mahendra Bhardwaj, Head, Ranbaxy (Africa)
- Ranbaxy Laboratories Ltd announced that it has launched the generic versions of cholesterol reducing drug - Atorvastatin, in Italy, Sweden and the Netherlands. With sales worth US$ 377 million, it is the largest selling pharmaceutical product in Italy. The market size for Atorvastatin in the Netherlands is US$ 164.4 million and in Sweden US$ 55 million
- Dubai-based DM Healthcare has opened a multi-speciality hospital in Kolhapur in Maharashtra. The Aster-Aadhar Hospital, a joint venture (JV) between DM Healthcare and Aadhar Hospital, is a 175 bed facility and is equipped with complete spectrum of healthcare amenities and infrastructure. A Medicity in Kochi, estimated to cost Rs 1,500 crore (US$ 2.98 million), is part of the expansion plans
- Halcyon Finance and Capital Advisors Pvt Ltd has bought management and development rights of an under construction super specialty hospital in Delhi, India, for Rs 375 crore (US$ 74.4 million). Halcyon plans to develop a 700 bed facility and will also provide allied healthcare activities such as research and medical education at the hospital
- The urology and laparoscopy chain, RG Stone Hospital, would invest Rs 120 crore (US$ 23.81 million) in Uttar Pradesh (UP) over the next two years to set up a chain of hospitals across the country. "We would provide reliable and affordable treatment available in the state," according to Baldev Raj, Country Head, RG Stone Urology and Laparoscopy Hospital
- With an intention to increase their foothold in the US healthcare market, Wipro Technologies has launched its NextGen Care Management solution. The solution enables physicians to drive patient participation in devising a personalised care plan with defined care goals, treatment plan and health improvement activities
- Apollo Hospitals plans to set up a second hospital in Bangladesh, at the port city of Chittagong, through a local partner. The 300 bed project is expected to be on steam in two years. Apollo Hospitals has participated in a similar tele-medicine initiative in 24 countries in Africa and runs 120 video conferencing hubs, mostly in India and a few in Mauritius, Maldives, parts of West Asia, Sri Lanka and others, to take healthcare to the patient's doorstep, according to Sangita Reddy, Executive Director, Operations, Apollo Group of Hospitals
- Bio-pharmaceutical and health science sector representatives from the UK are willing to expand partnerships with Indian companies, as per Ian Felton, British Deputy High Commissioner, Bengaluru
- Pharmaceutical majors such as Novartis, GlaxoSmithKline, Pfizer, Ranbaxy and Aventis are keen to emulate the consumer industry's success in the hinterland. Novartis educates 6 million villagers in a year on health under the banner of Arogya Parivar