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Presented by Sudhakar Jayaram 20 June 2015 Emerging Trends and Funding Opportunities Confederation of Indian Industry

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Page 1: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Presented by

Sudhakar Jayaram

20 June 2015

Emerging Trends and Funding Opportunities

Confederation of Indian Industry

Page 2: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Flow

1 Emerging Mega Trends

2 Forces Shaping Healthcare Landscape

3 Key Funding Opportunities

4 M&A Scenario – Global & Indian

5 Emerging Opportunities

6 Recommendations

Page 3: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Emerging Mega Trends

Page 4: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Mega Trend 1 : Urbanization

Page 5: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Mega Trend 1 : Urbanization

Page 6: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

URBAN Maximum concentration of healthcare facilities

SEMI URBANPresence of mostly unorganized players providing sub optimal care athigh cost to patients

RURALFew basic healthcare facilities available; requiring travel to urbancenters for most situations

Potential in smaller towns

More than 46% of the patients travel over 100 kms from small towns to metros to seek

medical care

Mega Trend 1 : Urbanization

More than 46% of the patients travel over 100 kms from small towns to metros to medical care

Potential in Smaller Towns

Page 7: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

The top 6 players together will have only 43,000 beds by 2015 – clearly inadequate to create healthcare access

Fortis Apollo Narayana Manipal Max KIMS

9.78.7

2.9

3.4

5.0

2.0

5.1

0.91.1

1.01.1

1.

2.

Current (Mar’11)

Bed Capacity

Announced additions

FY ‘11-’15

India has 1.6 million beds today; projected to grow to at least 2.1 million by FY15

But the share of the category each player will still be miniscule until 2015

Bed Capacity (in ‘000 beds)

12.5

11.0

2.3 8.4

2.0

Projected category

Share in 2015 0.6% 0.5% 0.4% 0.1%

2.1

0.1%

7.1

0.3%

Mega Trend 2 : Consolidation

Page 8: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

21.0%

32.6%

20.5%

19.8% 16.2% 8% 5%

16.4% 7% 7% 5%

3%

23%

16%

FY202

1

FY201

0

Food &beverages

Transport &communication

Housing andutilities

Apparels &

accessories

Medical care &health services

Education,

recreation

Misc. goods &services

Emerging middle income class segment will also impact the private consumption on

healthcare which is set to increase from 5% to 7.5% by end of this decade

• The expansion of the emerging middle incomeclass is driven by strong domestic growthaccompanied by a decrease in the numbers of thelower segments

• As the share of wallet increases for products and

services such as healthcare, transport, education,durables, etc – significant opportunity exists forthe companies targeting this income segment

Indian household expenditure distribution

India’s Population Distribution (millions) 1.36 billion1.19 billion

Householdincome/year (INR)

$*/dayper capita

2010 CAGR (%) 2021(Projection) (%)

> 8,50,000

3,00,000 – 8,50,000

1,50,000 – 3,00,000

< 1,50,000

Upper middle +

Middle

Emerging middle

Low

>$10

$5-$10

$1.7-$5

<$1.7

9.7%

6.3%

1.9%

-4.6%

14%

23%

42%

21%

80

170

470

460

190

300

570

290

Mega Trend 3 : Demographic

Sourc: eIndia Healthcare Market • The opportunity today

PwC

Page 9: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Mega Trend 3 : Demographic

Page 10: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

India is dealing with the dual burden of communicable and non-communicable

diseases, which developed countries have had to deal with only sequentially

Share of non communicable disease segment isrising in the country

• India has 17% of world population, it accounts for 21%

of global disease burden

NCD’s constitute 63% of overall disease burden inIndia & their increasing incidence will adverselyimpact the economy to the extent of 230 billion INRin a decade

• Rural India accounts for 70% communicable diseasecases, and over 50% of non-communicable disease.

72%

28%

68%

32%

60%

40%

53%

47%

63%

37%

1990 1998 2000 2005 2012

Communicable Non Communicable

Communicable Vs. Non-Communicable

67%

29%

8%5%

12%

Leading causes of death : Communicable

Diarrhoeal Diseases

Respiratory Infections

Tuberculosis

HIV/AIDS

Hepatitis

30%

16%12%

22%

3%4%

9%4%

Leading causes of death: Non- Communicable

Cardiovascular DiseasesStroke

Malignant Neoplasms

Diabetes/EndocrineNeuropsychiatric

COPD & Asthma

Digestive Diseases

Genitourinary diseases

Source: WHO Global Burden of Disease 2010

Mega Trend 3 : Demographic

Sourc: eIndia Healthcare Market • The opportunity today

PwC

Page 11: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Never have Patients been so involved in their Healthcare

55% of patients trust the

Internet more than the doctor

75% want to move from

informed consent to shareddecision making

74% of Consumers Open to

Virtual Doctor Visit

Mega Trend 4 : Psychographic

Source: eIndia Healthcare Market • The opportunity today

PwC

Page 12: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

60%

The WHO reports NCDs

to be by far theleading cause ofdeath in the world,representing over 60%of all deaths

7%

In 2012, around 44

million (6.7%) of theworld’s children agedless than 5 years wereoverweight or obese

12%

The global share of

older people (aged 60years orover) increased to11.7 per cent in 2013

Older , Sicker and Fatter …

Mega Trend 4 : Psychographic

Source: eIndia Healthcare Market • The opportunity today PwC

Page 13: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Proliferation of narrownetworks

Rising demand/cost inemerging markets

Government (& Privatesector) changing role infunding

Rise of consumerism

5

6

7 8

1

2

3

Macro-trends

4

Regulatory reform

Focus on value overvolume

Blurring lines between insurerand care provider/ deliverer

Emphasis on big data (includingnext gen analytics)

A new health economy is inevitable

Mega Trend 5 : Integrated Ecosystems

Source: eIndia Healthcare Market • The opportunity today PwC

Page 14: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Indian Market Strategies

Market-appropriate

productsIncreased rural

marketing

Treatment Engagement Support Management DeliveryPrevention

Low-cost

manufacturing

Diagnosis

Business Model

Transformation:Owning the Disease

Mega Trend 6 : Engagement

Source: eIndia Healthcare Market • The opportunity today PwC

“Owning the Disease”

Page 15: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Mega Trend 7 : Longitudinal and Accountable Care D

egre

e o

f C

om

ple

xity

& R

isk

Sh

arin

g

Page 16: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Forces Shaping Healthcare Landscape

Page 17: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Company Current Market Cap*(USD Mn)

% EBITDA EV/EBITDA Multiple(2014E)

Asian healthcare service providers

IHH Healthcare

Bangkok Dusit Medical

Bumrungrad Hospital

Raffles Medical

Apollo Hospitals

Fortis Healthcare

12,496

8,974

2,968

1,787

2,640

986

24.3%

20.4%

26.5%

30.1%

17.8%

8.6%

23.6x

24.1x

21.5x

24.0x

23.4x

26.3x

International healthcare companies

Ramsay HealthcareLaboratory Corp of America

Holdings

Davita Inc

HCA Holdings, Inc.

Community Health Systems, Inc.

9,311

8,545

15,800

28,990

6,010

12.9%

21.0%

20.3%

14.5%

13.8%

14.2x

7.4x

9.2x

8.4x

8.1x

Source: eIndia Healthcare Market • The opportunity today PwC

Force 1 : Superior Valuations

Page 18: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Comparable EV/EBITDA Multiples and MCaps

CompanyCompany Valuation-Equity - Post Money

(INR Cr)

Revenue Multiple (based on Equity

Value/Market Cap)

EBITDA Multiple (based on Equity

Value)

PAT Multiple (based on Equity

Value)

Manipal Hospitals 3600 3.1 19.8 NM

KIMS Hospital 786 2.68 12.9 44.7

Asian Institute of Medical Sciences 273 2.77 15.68

Medanta Medicity 3636 3.86 15.28 35.26

Fortis Healthcare 4581 0.85 3.04 8.12

Moolchand Healthcare 462 30.93 40.6 76.5

Apollo Hospitals 3798 2.57 15.66 32.17

AVERAGE 20.02

Source: Prime database, Market Reports

Force 2 : Elevated Multiples

Page 19: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Force 3 : Exit IRRs

Page 20: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Force 4 : Superior Destination

Page 21: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Health insurance is stimulating the growth of healthcare delivery

Growing health insurance penetration

The health insurance market is currently valued at ~2.9 BnUSD and registered a growth of 18%

Close to 300 million population (~25%) is covered undersome form of health insurance in the country today

Around 70% of healthcare expenditure is still being paid out ofpocket by individuals

• Voluntary (private) health insurance market growing at ~ 35%and is expected to grow at a rate of 23-25% for next 5 years

Changing role of Government from provider to payer

• The emergence of government sponsored health insuranceschemes provided the impetus to the insurance industry and

is expected to further expand to the different states/provinces

Main objective of these schemes was to offer financialprotection to below-poverty line segment against catastrophichealth shocks

Between 2007 and 2010, 6 major schemes have emerged,including one sponsored by the government of India (GOI)and five state-sponsored schemes

• Approx. 240 million Indians are covered by these schemes sofar , up from 34 million beneficiaries in 2003

67.0%

2.0%3.0%

2.0%2.4%7.2%

14.4%

2.0%

Sources of Finance in Health Sector in India

Central

GovernmentState

GovernmentLocal

GovernmentOut-of-Pocket

Public Firms

Private Firms

0.31

3

15

0

4

FY 05 FY 10 FY 15E FY 20P

Health insurance premium collected (USD Bn)

16

12

8

Source: eIndia Healthcare Market • The opportunity today PwC

Force 5 : Coverage

Page 22: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Altogether, six themes will continue to underlie the investment landscape:

• Continued focus on cost management

• Integrated care delivery models that focus on outcomes rather than volume

• Emerging payment models

• Shifting care to lower-cost sites and models

• Higher consumer power, engagement and expectations

• Focus on wellness and prevention

Force 6 : Summary

Page 23: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Key Funding Opportunities

Page 24: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

It is estimated that Cardiology is the largest contributor at ~27-30% ofrevenues and Oncology ~17-22% of revenues of the top 5 hospital chains in India

CARDIAC IS ALSO ESTIMATED TO BE ONE OF

THE TOP 3 MOST PROFITABLE SPECIALTIESCARDIOLOGY IS THE LARGEST REVENUE

SEGMENT FOR THE TOP 5 HOSPITAL CHAINS

Over the next 5 years, cardiology and oncology are expected to

drive ~50% of the bulk of in-patient revenue in India

Current Focus : Cardiology and Oncology

Sources: Philips internal data

Page 25: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

No.

of

pati

ents

(m

illi

on

)

2,540

CHD Growing Rapidly to Exceed 50 Million Patients in 2013251

Himachal

Pradesh400

Uttarakhand

7,357

Uttar

Pradesh

2,802

Madhya Pradesh

1,296

Punjab

946

Haryana 1,091

Delhi19

Sikkim

134

Tripura

985 62

Assam Nagaland

112

Manipur

52

Mizoram

3,378

Tamil nadu

3,286

Andhra

Pradesh

3,397

Bihar

1,197

Jharkhand3,309

West

Bengal

5,204

Maharashtra

62

Goa

Karnataka

2,706

Rajasthan

2,480

Gujarat

Daman & Diu

Dadra &

Nagar

Haveli

1,560

Orissa

81

Pondicherry

1-3000

3-5000

>5000

115

Meghalaya

CHD population (000s)

< 500

500-1000

30

20

10

0

70

60

50

40

4.55.5

6.1

5.9

5

2000

6.2

7.3

8.3

7.7

6.4

2005

9.1

11

10

8.5

2010

14.3

13

11.3

2015

Coronary Heart Disease

40-49 years

10.5

12.5

60-69 years

30-39 years

50-59 years

20-29 years

6%

8.3

Cardiology

India has more than 50M patients with coronary heart disease

481

Jammu

and Kashmir

But India has the capacity to only perform only ~2M procedures

Sources: Philips internal data

Page 26: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Punjab

1,296 Pradesh

West

2,706

Rajasthan

Gujarat

Meghalaya 985Assam Nagaland

Bengal

PradeshPunjab

40

Rajasthan

31

Madhya Pradesh

Nagaland

Meghalaya

India has a big shortage of Cardiac Centers

5

Himachal54

5Uttarakhand

2744

HaryanaDelhi

50

Uttar

Pradesh

6

Jammu

and Kashmir

2

Tripura

5

Assam

2

Manipur

Mizoram

93

Tamil nadu

120

Andhra

Pradesh

6

Bihar

5

Jharkhand

1

Sikkim

61

West

Bengal

202

Maharashtra

8

Goa 99

Karnataka

57

Gujarat

6

Orissa

8

Pondicherry

21-50

50-100

>100

No. of cath labs

nil

1-5

6-20

251

Himachal

400

Uttarakhand946

Haryana 1,091

Delhi

7,357

Uttar

Pradesh

2,802

Madhya Pradesh

481

Jammu

and Kashmir

115

134

62

Tripura 112

Manipur

52

Mizoram

3,378

Tamilnadu

3,286

Andhra

Pradesh

3,397

Bihar

1,197

Jharkhand

19

Sikkim

3,309

5,204

Maharashtra

62

Goa 2,540

Karnataka

2,480

Daman & Diu

Dadra &

Nagar

Haveli

1,560

Orissa

81

Pondicherry

1-3000

3-5000

>5000

Daman & Diu

Dadra &

Nagar

Haveli

CHD population (000s)

< 500

500-1000

Total # CHD patients: >50 million Total # Cath Labs: 1052

Sources: Philips internal data

Page 27: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Increased investments in Cardio and Onco - the most profitable segments

CARDIOLOGY AND ORTHO ARE THE LARGEST REVENUE SEGMENTS – TYPICAL 200 BEDDED + TERTIARY HOSPITAL THESE ARE ALSO THE MOST PROFITABLE SEGMENTS

Focus on ‘CONCORT’-

Cardio, Onco, Neuro, Critical

care, Ortho, Radiology,

Transplants

Oncology is ~8% of inpatient revenue

Sources: Philips internal data

Page 28: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

India has a prevalent population over 4 M cancer patients with only 15 states accounting for 93% of cancer cases

1.41.31.21.1

7.0

5.7

4.5

3.5

+12%

2017201520132011

Prevalence

Incidence

Number of cancer cases

(in Millions)

Sources: Philips internal data

Page 29: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

M&A Scenario : Global & Indian

Page 30: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

M&A Scenario : Global

Page 31: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

M&A Scenario : Global

Page 32: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

M&A Scenario : Global

Exit

Page 33: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

• In 2013 , over a tenth of all PE investments in India were in the Healthcarespace

• The healthcare and life sciences sector in India has emerged second in termsof investment value with investments worth 729 million USD from 15 deals

• The healthcare and life sciences sector tops the list of PE exits, in terms ofboth value and volume, with six deals worth 513 million USD. Thisconstitutes 45% of the total deal exit value

• In addition to investments by PEs, recent trends point to investorsholding a controlling stake in major players such as Vasan Healthcare,Care Hospitals etc.

The Indian health care sector is becoming an attractive investment

destination for PE and VC companies and is exhibiting investments

across the spectrum

Hospital chains –

PE / Strategic Investor -

Year

2013

2012

2011

2010

2009

2008

2007

Deals

73

30

24

23

24

18

23

Value($ Mn)

1,264

755

274

438

281

333

395

M&A Scenario : Indian

Source: eIndia Healthcare Market • The opportunity today PwC

Page 34: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Foreign playerTemasek, Singapore/ Carlyle,

USACDC, UK Parkway Pantai, Singapore

Indian player Medanta Narayana Health Continental hospitals

Location within

IndiaGurgaon, Haryana Pan India Hyderabad

Current no. of beds 1,250 beds ~7,500 beds 350 beds

Investment made

(approx.)INR 650 Cr / INR 1,000 Cr INR 299 Cr INR 282 Cr

Stake 18% / 30% Minority stake (undisclosed) 51%

Transaction year 2015 / 2013 2015 2015

In addition to investing in the hospital sector, international healthcareproviders have also shown keen interest in exploring the opportunityacross spectrum of healthcare formats

M&A Scenario : Indian

Source: eIndia Healthcare Market • The opportunity today PwC

Page 35: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Foreign player JBIC, Japan Life Healthcare, South Africa TPG Capital, USA

Indian player Sakra hospital Max healthcare Manipal health

Location within

IndiaBangalore, Karnataka Pan North India Pan South India

Current no. of beds 300 beds ~1,900 beds ~4,900 beds

Investment made

(approx.)INR 63 Cr INR 766 Cr INR 900 Cr

Stake Undisclosed 46.4% 24.75%

Transaction year 2014 2014 2015

In addition to investing in the hospital sector, international healthcareproviders have also shown keen interest in exploring the opportunityacross spectrum of healthcare formats

M&A Scenario : Indian

Source: eIndia Healthcare Market • The opportunity today PwC

Page 36: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Foreign playerCancer Treatment Services

International (CTSI), USADaVita Healthcare Partners, USA Columbia Asia, Malaysia

Indian player Citizens hospital Nephrolife Care Adopted 100% FDI route

Location within

IndiaHyderabad Pan India Pan India

Current no. of beds 300 beds - 1,300+

Investment made

(approx.)INR 220 Cr INR 200 Cr INR 1,000+ Cr

Stake Undisclosed Undisclosed -

Transaction year 2012 2012 2005

In addition to investing in the hospital sector, international healthcareproviders have also shown keen interest in exploring the opportunityacross spectrum of healthcare formats

M&A Scenario : Indian

Source: eIndia Healthcare Market • The opportunity today PwC

Page 37: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

28,54733,953

2,990

FY10 FY11 FY12 FY13 FY14 FY15 FY16YTD

India Primary Market Fund Raising

Historical Primary Market Fund Raising Activity (Rs. Cr.)*

94,848

78,634

65,552

55,018

Market Outlook

• The maximum amount of equity fund raised in India capital markets was ~Rs.95,000 cr. in FY10

• Pipeline for ~Rs.1.33 lakh cr . of equity fund raising for FY15-16

• Disinvestment target of ~Rs.69,500 cr. in FY15-16

• Strong pipeline of Public Issues and QIP for the coming year

• After 3 years of slowdown, Primary market fund raising activity picking up, with increasing confidence levels

• Timing the issue will be key for successful fund raising in coming year

Source: Prime database, Market Reports

Page 38: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

S.

No.Transaction Stage

Amount

(Rs. cr.)

No. ofIssues

1. SEBI approval pending ~4,000 8

2. Announced IPOs ~10,000 7-8

3. Disinvestment Plans ~69,500 6-10

4. Banks fund raising ~30,000 8-10

5. Other Corporates ~20,000 9-10

Total 133,500

Equity Raising - Public Issues

Historical Fund Raising through Public Issues (IPO+FPO) (Rs. Cr.)*

Pipeline of Public Issues for FY15-16 (Announced + Filled Issues)Pipeline of Equity Issues for FY15-16

Issue

ACB (India) Limited

AGS Transact

Amar Ujala Publications

Catholic Syrian Bank

CL Educate Limited

Dilip Buildcon Limited

Lavasa Corporation Limited

Manpasand Beverages Limited

MEP Infrastructure Developers Limited

Navkaar Corporation

Pennar Engineered

PNC Infratech Limited

Power Mech Projects Limited

Prabhat Diary

Precision Camshafts

Rashtriya Ispat Nigam Limited

S H Kelkar and Company Limited

Sadbhav Infrastructure Project Limited

Shree Shubham Logistics Limited

SMC Global Securities Limited

SSIPL Retail Limited

UFO Moviez India Limited

Uniparts India Limited

~Issue Size (Rs.cr.)

500

1300

300

400

120

600

750

400

400

600

200

450

200

500

200

600

300

1050

300

125

200

750

300

46,941 46,182

10,4716,497 8,661

2,769 468

FY10 FY11 FY12 FY13 FY14 FY15 FY16YTD

Source: Prime database, Market Reports

Page 39: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Emerging Opportunities

Page 40: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Emerging Opportunities

1) Ambulatory Surgical Care Centers

2) Urgent Care

3) Data Analytics and Big data in Healthcare

4) Home Healthcare

5) Telemetry (e-ICU etc)

6) Revenue Cycle Management (RCM) for Hospitals

Page 41: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Recommendations

Page 42: Confederation of Indian Industry - ciihealthcareeast.com · Emerging Trends and Funding Opportunities Confederation of Indian Industry. Flow 1 Emerging Mega Trends 2 Forces Shaping

Challenges & Recommendations

• There are a limited number of high-quality fund managers that focus exclusively on healthcare. While there are over 300 healthcare-focused funds in the U.S., there are only 10-15 across the emerging markets.

• Most emerging markets healthcare investments have been made by sector-agnostic private equity funds, in which healthcare represents approximately 8-10% of the portfolio. Nevertheless, sector-agnostic funds face their own set of challenges, including difficulty managing specific sector exposure and limited ability to provide expertise to operationally enhance specialized businesses.

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NMC HealthcareAn Overview

Annexure

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NMC is UAE’s largest

private healthcare provider

First company from Abu Dhabi to list on the London Stock Exchange and part of FTSE 250 Index

Market cap in excess of USD 1.5 billion

2013 Revenues over USD 550 million

600 Doctors

5000 patients per day

Abu DhabiAl AinDubaiSharjahUmm Al Quwain

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Only healthcare

provider with a pan UAE

presence

12 Facilities

5 Cities

4 Emirates

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Centers of Excellence

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Centers of Excellence

Abu Dhabi’s first private women’s hospital

Located in the Al Jazeera football stadium, the hospital features the most up to date methods for diagnosis and treatment in Gynecology, Obstetrics, Neonatal care, Infertility and Plastic Surgery

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The Royal Suites at BrightPoint

BrightPoint is designed to create an optimal healing environment with a caring, emotionally supportive and home like atmosphere. Our suites are not only designed and equipped for the best clinical outcomes but also for the most relaxed stay with amenities such as Spa services, professional baby photography services , Villeroy Boch bathroom fixtures, Herman Miller furniture and iPads to control lighting, temperature, curtains and the television

Centers of Excellence

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This is not a 5 star hotel (although it may feel like one)

Each BrightPoint patient is accompanied by dedicated customer service support staff during their journey and stay within the hospital to ensure a delightful experience. All our staff can converse fluently in Arabic, English, German, Romanian, Hindi, Urdu, Malayalam and Tagalog. We have a rigorous recruitment and training process to ensure that each patient is welcomed as a member of the family and is not treated as just a number

Centers of Excellence

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Indian Subcontinent Footprint of Dr B R Shetty

Thank You