Indian Healthcare Sector on Fast Track

India is emerging as a next super power country. Days are not far where we can proudly say that our country “India” is one of the superpower countries. There as many hurdles and the distance is quite long. Many things in our country have to be changed, and the first thing is the attitude of people towards society. Apart from attitude, the education and healthcare have to be improved. It is rightly said that in a healthy body lies a healthy mind.

Indian Government is also thinking in the same line. According to the planning commission, expansion in the healthcare sector is the top priority. In the next five-year plan, (2012-2017) the Indian government aims to increase the spending on the healthcare from current 1% of the GDP to 2.5% of the GDP.

In India, there is a vast difference between the quality and price of treatment provided by private hospitals and public hospitals. Private hospitals, although provide better facilities and treatment but a handful of Indian population can afford it. Whereas, the state run, hospitals are of poor standard. Furthermore, most of the medical facilities is in urban India even after 65 years of independence medical facilities are lacking in rural India.

According to a report by FICCI, the Indian healthcare sector is estimated to grow around 14% annually and is likely to become a USD 280 billion Industry by 2020.

Many companies are either thinking of acquisition in the healthcare and life-science sector or has diversified in the sector.

The healthcare and Life Science Strategic Business Unit of Wipro is looking on health and life-science sector as an inorganic growth option.

Electronic maker, Panasonic is planning to enter Indian market to tap the healthcare equipment sector. The company plans to ECG machines, blood bank refrigerator, and diabetes detector. The company may acquire local healthcare equipment manufacturer to penetrate the Indian healthcare equipment market.

Piramal Group is planning to acquire not well to do midsize biotech companies in North America and Europe, and contemplating to form joint venture with bigger pharmaceutical companies overseas. Many International pharma companies are showing interest in acquiring Indian companies. A Japanese company Takeda Pharmaceuticals is in discussion with Indian drug maker companies for acquisition.

Fortis Healthcare is to acquire Fortis Healthcare International from a firm owned by its promoters. The company is planning to set up four new hospitals thereby increasing the bed capacity from 9700 to 10270.

The company is planning to set up 45 bed hospital in Kochi for women healthcare primarily obstetrics and neo-natal services under ‘Fortis La Femme’ brand by 2012.

At Bilaspur, the company is planning to set up 100 beds multi speciality hospital, which will act as a spoke for the Fortis Mohali hub.

Further, the company plans to set up 375 bed a tertiary care hospital at Marathallai in Bangalore in Karnataka. The hospital is likely to become operational by 2013. Plans are on the anvil to manage 50 beds Cardiac Care unit at HLG hospital in Asansol, WB.