Indian Health And Life Science Sector Gets Huge VC, PE Investments in Q1


Bangalore: The Health and Life Sciences (HLS) Sector of India has quickly recovered from the 12.23 percent drop last year as the investments in the industry had already crossed $466 million in the first four months of 2012.

The PE and VC investments in the health sector mainly in speciality hospitals including clinics which according to industry experts, offer speedy return on a low capital among others.

The data is compiled by Venture Intelligence, a research firm based in Chennai. According to the previous year’s data, a sum of $ 287 million was invested across 23 deals. But it took only 8 deals to cover the $ 466 million investment this year, which is a 62.36 percent increase from last year.

According to Amit Chander, partner at Baring Private Equity Partners India,” low capital and availability of skills were the two major growth drivers for the clinics to attract funds.” It will take 20 to 30 lakh to set up single bed in a multi-speciality hospital but when it comes to clinics, its just 10 lakh. “A clinic can start making healthy profits from the second year of its operations and it will take a minimum of five years for multi-speciality hospitals,” he added.

Some of the major deals closed in Q1-->