3rd  Evolving Healthcare Investment Landscape     A Conference on Scope of VC & PE ,Debt and Angel Funds 

in Healthcare

Private Equity view of Healthcare By Ananta P Sarma, MD&CEO,

SIDBI Venture Capital Ltd

India Healthcare- Loads of potential

• Fragmented• Large and rapidly growing market• Rapid advances in– Healthcare delivery systems– Pharmaceuticals– Diagnostics– Remote Technologies– Medical devices and equipment– Insurance

• Current Low Penetration

India Healthcare- Loads of potential

• Lack of Infrastructure

• Lack of Healthcare Management Expertise

• Market is like the 2 salesmen connundrum:– The first salesman reported back, “This is a terrible

business opportunity, no-one wears shoes.”– The second salesman reported back, “This is a fantastic

business opportunity, no-one wears shoes.”

Advantage Healthcare India

• Doctors available• Technical manpower available• Low manufacturing costs• Low labour costs• Economies of scale • Pricing power• Life Expectancy• Technology

If you invest early enough and that is now and earlier the better, you will make enough returns on equity in the healthcare sector

Catalysts

• Sales of Generic Medicines• Rural penetration • Higher Lifestyle diseases• Long term medication• Government expenditure in healthcare• Heightened awareness• Increasing affluence• Health Insurance

Our Healthcare Investments

• A pharmaceutical company- exited• A hospital chain in Tier 2 and Tier 3 towns• A manufacturer of blood bank and blood

related equipment• An on line care-giver• A diabetes speciality hospital– We are looking forward to making more

investments in line with our philosophy of supporting MSMEs

SIDBI Venture Capital Ltd

• SVCL manages 5 PE/VC Funds and are raising 3 more– 1 international fund– 2 state specific funds including West Bengal Fund

• SVCL has substantially disinvested profitably from the first 2 funds

• Normally, SVCL invests only in MSMEs and enable them to grow

Thank you