India is perched to witness additional growth in its economy as a result of positive trends within the healthcare sector. Reports clearly suggest that healthcare sector is going to be one of the major sectors that would fuel the economic growth and will contribute to the increased revenues, along with IT Services and Education sectors in the country. Over 40 million new jobs and 200 billion increased revenues are expected to be generated by the Indian healthcare sector till 2020, as per a report titled, “India’s New Opportunities- 2020”, prepared by the All India Management Association, Boston Consulting Group and the Confederation of Indian Industries (CII).
The Indian healthcare sector is poised to reach US$ 280 billion by the year 2020, thereby contributing an expected Gross Domestic Product (GDP) spend of 8 per cent by 2012 from 5.5 per cent in 2009, according to a report by an industry body. A US$ 36 billion industry today and growing at 15 per cent compound annual growth rate (CAGR), the Indian healthcare industry will reach the market value of US$ 280 billion by 2022.
Increasing population, higher expenditure on lifestyles, rising market of health insurance, government initiatives for better medical infrastructure, and focus on Public Private Partnership (PPP) models are some of the driving factors for the growth of healthcare sector in India.
Major players in the Indian healthcare sector include Apollo Hospitals Enterprise Ltd, Fortis Healthcare Ltd, Max Hospitals and Aravind Eye Hospitals.
US medical devices-maker Welch Allyn plans big India expansion and boosts its presence in India. The US-based company has a range of products such as stethoscope, ophthalmoscope, BP monitors, cardio-pulmonary and thermometry devices. “Welch Allyn has drawn up an aggressive five-year strategy to focus on the Indian market, as we target revenues of US$ 5 million by 2015,” according to Con Hickey, Senior V-P, Japan, Asia Pacific and Africa. Welch Allyn has selected Garuda Med Equipments as its marketing and distribution partner in India. The plan behind the joint venture is to focus the resources on customers in primary healthcare centres and B&C class cities and rural market in the country.
Aventis Pharma, a unit of France’s Sanofi, a drug maker company intends to acquire unlisted Universal Medicare’s nutraceuticals business in order to boost its share in the Indian healthcare segment in the country. Universal Medicare’s turnover of the nutraceuticals business, which comprises of over 40 over-the-counter formulations, is estimated at over US$ 23.13 million, as according to Shailesh Ayyangar, Managing Director, Aventis Pharma, the acquisition will offer both the groups to extend their services to larger section of the Indian population by offering a higher variety of medical services that comprise of pharmaceuticals, vaccines and nutraceuticals.
Medical-equipment maker Trivitron Healthcare intends to invest US$ 21.02 million in 2011 on capacity expansions and acquisitions. Trivitron has set up a 25-acre medical-technology park at Irungattukottai, near Chennai, which has started its operations in September 2010. With 10 housing facilities, the park currently operates one factory for manufacturing ultrasound and colour Doppler machines (under a joint venture with Hitachi Aloka).