Highlights opportunities and challenges in private equity, venture capital, debt and angel funds in the healthcare sector in eastern India
Confederation of Indian Industry (CII) Eastern region recently organised the 4th Evolving Healthcare Investment Landscape in Kolkata. The Evolving Healthcare Investment Landscape is a forum, which, since its inception has been instrumental in sensitising the scope of private equity (PE), venture capital (VC) and angel funding in the healthcare space in eastern India, particularly West Bengal.
The inaugural plenary was graced by Dr Shashi Panja, Minister of State, Health and Family Welfare, West Bengal. Dr Panja said that the stage is set for private investors. Mentioning how healthcare is accessible, affordable and sustainable in West Bengal like never before, she drew special attention to the child and woman social development sector and also urged CII to play the role of a facilitator.
Earlier, setting the tone of the conclave, Sanjay Prasad, Chairman, CII ER Healthcare Subcommittee, said, “The challenge is to provide entrepreneurs with the right intellectual capital so that they are able to proceed with funding abilities. This initiative by CII brings investors, end users, hospital chain owners, stand alone hospital owners and all kinds of healthcare providers under one roof which would translate into effective investment decisions.”
TV Narendran, Chairman, CII Eastern Region, described India as an evolving destination for investment. The demand for specialised quality healthcare services is driven not only by the swelling middle-class in big cities but also from tier-II and tier-III cities across the region. Narendran also spoke of CII’s initiatives such as conducting a model case study on the status of tuberculosis in Haryana, efforts to identify areas at the national level where the private sector could complement government efforts, and creation of the Healthcare Sector Skill Council.
CS Ghosh, MD and CEO, Bandhan Bank, said, “Organisations should also take up CSR activities that promote medical awareness among people. Infrastructure and indigenisation of medical devices need attention as well.” He also spoke about the need for tax exemption for small entrepreneurs to help their projects become viable.
Dr Rupali Basu, Vice Chairperson, CII West Bengal, stated, “Eastern region has witnessed more than Rs 450-crore private equity investment in the healthcare domain. The requirement now is to try and connect them with relevant fund houses or advisory houses.”
Sean Sovak, MD, Light House Fund, spoke of making an impact in the healthcare sector which has promising domestic & export markets.
Also present was Kaushlendra Sinha, Regional Director, CII East and North East. The session concluded with a vote of thanks by Rupak Barua, group CEO, AMRI Hospitals.
The first plenary was all about diverse funding opportunities in healthcare. Moderator Dr Rana Mukherjee, MD, Mediplanners, commented that in 10 to 15 years from now, healthcare sector will undergo a sea change. Vamesh Chovatia, Partner, Healthcare Fund, Tata Capital Fund, highlighted key emerging themes like local production of medical equipment, e-pharmacy and digital healthcare system, telemedicine and analytics that would bridge the urban – rural divide.
Mahadevan Narayanamoni, Director, TPG Capital, said that upgradation of infrastructure is key to success.
Sunil Thakur, Director and COO, Quadria Capital, felt that with privatisation, Eastern India is soon turning into a popular destination for investors allowing cross-pollination of best practices in healthcare.
Abhishek Kabra, VP, Samara Capital, highlighted how corporatisation, consolidation and brand building are gathering pace. With molecular diagnostics, social media, mobile clinics and home – based healthcare services gaining momentum, there is a high investment appetite for innovative business models.
The second plenary covered the difficulties regional players face in accessing funds. Recounting the experience of setting up a green – field project with private funding, Ayanabh Debgupta, Director, Medica Super Speciality Hospital, said using a diverse workforce leads to implementation of better practices, thus improving services.
According to Sean Sovak, MD, Light House Fund, it is the scalability factors with an accelerated growth path that investors look for. “People who have had a growth path in life are sometimes better suited in taking businesses forward,” said moderator Dr Sabahat Azim, Founder and CEO, Glocal Healthcare. Investors look for a credible business model and not necessarily B-school tags in budding entrepreneurs.
Rakesh Goyal, Director, investment banking, Yes Bank and Vrinda Mathur, Partner, Grant Thornton India, confirmed that investors’ interest in eastern India’s healthcare sector is growing rapidly.
The third plenary was about strategies healthcare units could adopt while utilising PE, VC, debt and impact utilisation funds. Moderator Samir Agarwal, MD, INDCAP, emphasised the need to invest in technology and brand visibility. Srikrishna Ramamoorthy, Partner, UNITUS Seed Fund felt that customers are ultimately, the best investors. Raghav Kanoria, Co-founder, Calcutta Angels Network, stressed the importance of technology in today’s business scenario as one of the key factors for investment decisions. According to him, since the quality of entrepreneurship in the east is good, the region will attract greater volume of investments soon.
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