Healthcare presenting ripe investment opportunity for PE, VC

The Indian healthcare industry, growing at an exponential rate, now presents an attractive investment opportunity for private equity and venture capital firms, says private equity experts.

They say the healthcare sector is growing rapidly with the rise in lifestyle-related and other diseases. A recent industry report sees healthcare, which is at present a $35 billion industry in the country, reaching over $75 billion by 2012 and as much as $150 billion by 2017.

"There is a huge demand supply gap in healthcare delivery business in India as there are few organised hospital chains. Pharma, retail, medical equipment, diagnostics services are businesses where efficiency can be brought in," Sahad PV of VC Circle, an website which tracks deals, said.

Sanjay Arte, Partner, India Value Fund, a PE fund focusing on mid-size firms, believes there is a significant untapped potential for private equity and venture capital in sector.

"Long term capital of the kind that is provided by PE and VC firms will help in the development of an efficient and high quality healthcare services industry in India," Arte said.