Hospitals and Diagnostic Centre                               Back To Home
Business opportunities in India

FDI is permitted up to 100 percent under the automatic route in hospitals in India.

Thus no government approval is required as long as the Indian company files with the regional office of the RBI within 30 days of receipt of inward remittances and file the required documents along with form FC-GPR with that Office within 30 days of issue of shares to the nonresident.

.

Investment in Hospitals and diagnostic centers in India are having booming opportunities and we establish your hospitals, diagnostic centers and carry out medical tourism with our efficient team of experts headed by renowned highly qualified and experienced doctor:

                                                                                             Dr.Syed Nusrath Farees

[Passed MBBS from Ramaiah Medical College Bangalore – Worked Registrar in Dept. of Surgical Oncology Longbeach Memorial Hospital, California, Los Angeles, USA – Passed M.S. General from J.J. M. Medical college, Davangere, Karnataka – Worked as Professor of Surgery, external examiners in various medical  colleges  of India and many more ...] 

Industry overview

Industry insiders believe that an estimated 60 per cent of hospitals, 75 per cent of dispensaries, and 80 per cent of all qualified doctors work in the private sector. Interestingly, the private healthcare sector in India accounts for over 75 per cent of total healthcare expenditure in the country and is one of the largest in the world. However, private healthcare delivery is highly fragmented with over 90 per cent of private healthcare being serviced by the unorganized sector. Some two to three percent of hospitals are 200-bed plus, some six to seven per cent are 100-200 bed size hospitals, and the bulk 80 per cent of private sector hospitals are very small, less than 30 beds. With growing affordability of the middle class, more and more Indian consumers are willing to pay for quality healthcare, fuelling the growth of this sector. “There is a tremendous growth opportunity in Indian healthcare industry.

The private hospital sector is an attractive sector for investors. Most of the funds acquired are diverted towards physical infrastructure, equipment procurement or expansion projects. “Investment in healthcare is essentially largely required for creation of new infrastructure (land and building) or for acquisition of strategic stakes in existing entities,”

Some larger hospital chains have also attempted an Initial Public offering (IPO) and a fraction of hospitals are funded by FDI. “Currently, FDI in healthcare has manifested through increasing interest by PE players/buy out funds. While this provides a huge window of opportunity to raise capital, it also simultaneously puts a huge pressure on operators on performance.

According to this year's July issue of the Department for Industrial Policy and Promotion (DIPP) newsletter, the total cumulative FDI inflow in hospitals and diagnostic centre segment from January 2000-June 2010 is Rs 35, 544.34 million($ 821.52million ).

According to Yes Bank and an industry body report published in November 2009, the healthcare industry in the country, is projected to grow 23 per cent per annum to touch $ 77 billion by 2012 from the current estimated size of $ 35 billion. It is today the second-largest service-sector employer in the country, providing jobs for about 4.5 million people directly or indirectly. The industry forecasts that this segment will account for 6.1 per cent of GDP by 2012 and is projected to provide employment to around nine million people.

Industry leaders claim that, the current ratio of beds per thousand persons is a mere 1.03 (well below the WHO norms) compared to an average ratio of 4.3 for developing countries like China, Korea, and Thailand, and in the best of circumstances is projected to reach 1.85 per thousand persons by 2012. Further, it is estimated that over a million beds have to be added to attain this 1.85 ratio, which translates into a total investment of $78 billion (Rs. 350,830 crores) in health infrastructure alone. “Realistic targets of 1.85 beds per thousand population by 2012 needs an investment of $ 77.9 Billion alone” says Suneeta Reddy, Director, Finance, Apollo Hospitals Enterprise Ltd, Chennai.

With respect to the practicing allopathic doctors and trained staff like nurses, currently there are six lakh doctors and 1.6 million nurses in India. As per the World Health Organization guidelines, it translates into a gap of approximately 1.4 million doctors and 2.8 million nurses. An additional 800,000 physicians are required over the next 10 years, which in turn translates into huge investments in training facilities and equipment, says industry insiders. They believe that in order to reach even 50-75 per cent of the present levels of other developing countries, the sector will require an estimated investment of $20-30 billion.

The Next Big Idea

Industry insiders believe that an estimated 60 per cent of hospitals, 75 per cent of dispensaries, and 80 per cent of all qualified doctors work in the private sector. Interestingly, the private healthcare sector in India accounts for over 75 per cent of total healthcare expenditure in the country and is one of the largest in the world. However, private healthcare delivery is highly fragmented with over 90 per cent of private healthcare being serviced by the unorganised sector. Some two to three percent of hospitals are 200-bed plus, some six to seven per cent are 100-200 bed size hospitals, and the bulk 80 per cent of private sector hospitals are very small, less than 30 beds. With growing affordability of the middle class, more and more Indian consumers are willing to pay for quality healthcare, fuelling the growth of this sector. “There is a tremendous growth opportunity in Indian healthcare industry. Much of the growth will be in private sector which attracts a lot of interest. Many sectors like telecoms and aviation were in the grip of the State for decades and in the last few years we have seen the emergence of world class globally competitive Indian players in such infrastructure sectors.

Catching The Investor’s Eye

The private hospital sector is an attractive sector for investors. Most of the funds acquired are diverted towards physical infrastructure, equipment procurement or expansion projects. “Investment in healthcare is essentially largely required for creation of new infrastructure (land and building) or for acquisition of strategic stakes in existing entities,”

Other Sources

Some larger hospital chains have also attempted an     Initial Public offering (IPO) and a fraction of hospitals are funded by FDI. “Currently, FDI in healthcare has manifested through increasing interest by PE players/buy out funds. While this provides a huge window of opportunity to raise capital,

FDI on a High

According to this year's July issue of the Department for Industrial Policy and Promotion (DIPP) newsletter, the total cumulative FDI inflow in hospitals and diagnostic centre segment from January 2000-June 2010 is Rs 35, 544.34 million($ 821.52million ). This includes 184 approved projects comprising of hospital projects along with diagnostic centers, centers for aurvedic medicine, manufacture and import of medical devices, implants and other healthcare products. Of these roughly half of the projects are for hospital and diagnostic centers.

Upon close inspection, the list of FDI approved projects in hospital and diagnostic centers during the period of August 1991 to August 2010 reveals that the US accounts for a bulk of FDI in hospitals in India. Other countries like UK, Mauritius, Canada, Germany, also feature among the source country.

The largest investment made is by NSR Direct PE Mauritius, LLC, Mauritius to Capricorn Hospitality Services Pvt Ltd, Uttar Pradesh for investing in the companies which are engaged in the hospitality and healthcare. This is the biggest FDI investment made in the hospital sector. The $124.33-million -project was approved on 28 February 2010, and is followed by a $107.37-million-project approved on August 2010. This investment, for the purpose of setting up of specialised medical centres to operate and manage fully furnished, staffed and equipped facilities, is made by Alexandria Real Estate Equities, INC. USA to Alexandria Real Estate Equities INC. New Delhi. Capricorn Hospitality Services is said to be in talks with Max Healthcare to fund its expansion plans. “We are on track to double our bed capacity in the next 9~12 months with four new hospitals slated to open in Shalimar Bagh in North Delhi, Mohali, Bathinda and Dehra Dun. In addition to these, we continue to explore opportunities in the healthcare space as it evolves rapidly in tandem with rising incomes, changing lifestyles and shifts in demographics. Funding for all projects is almost fully tied up with the exception of a small component for the PPP projects in Punjab; we are in dialogue with several investors for closure of this pending item,” revealed Ahmed. Evidently, Alexandria Real Estate Equities INC, who recently sponsored an industry award ceremony have great expectations from the Indian healthcare industry.

Still a Hazy pictureDespite these huge figures, there is lack of clarity about whether what is approved really materialises on the ground and motives of investors. “According to me, there are really only few hospitals which would qualify as FDI hospitals in India. Like Columbia Asia, Apollo Gleneagles, and Max Healthcare. The rest, are FDI approved on paper, and may not have brought in capital through the FDI route but rather through other sources of foreign financing available under existing regulations, following approval of their projects,” says Dr Alexander Kuruvilla, CEO and President, Medical Synergie, Kolkata. One needs to investigate if the hospitals mentioned in the DIPP approval list do exist on ground, having received approval several years ago.

In addition to the above mentioned players, an additional major player to look out for is the Emaar group which had intentions of setting up 100 hospitals in India. In a 2006 press release i then chairman Mohamed Ali Alabbar had said that their detailed business plans for the healthcare business aimed to meet the fast growing demand for healthcare infrastructure and services in the targeted markets. Emaar’s expansion into the healthcare business is part of its holistic approach to property development and complemented its earlier announced plans for the education sector. After EMAAR withdrew its IPO in February 2008 it seemed that the proposed project was on hold but recently the company is said to be looking for partners for a joint venture and has been talking to many leading players in the industry, namely Fortis Healthcare.

However, FDI in healthcare is also supported by small investors. An interesting and welcome fact is that NRIs are a major source of investment in hospitals. “A large number of the approved projects are small individual investor type hospitals, with NRI participation and in smaller cities, indicating the importance of diaspora contacts and location specific professional and other linkages that can affect foreign investment in hospitals,” says Kuruvilla.
Hopefully, the schemed would also benefit brand India in the medical tourism arena and boost medical value travel. In the same way, other sections like the pharm, health insurance , clinical trials and other health services outsourcing businesses could also benefit indirectly.

An Attractive Proposition
The FDI investment in real estate has restrictions today in terms of “the minimum size of infrastructure to be created from FDI funds ( 550,000 sq.ft.) This is a huge show stopper. An average 300 bed hospital (which is an economic size for any hospital) can be very efficiently created in about 250,000/300,000 sq.ft.. Thus, the current restriction makes it impractical to create hospital assets. “

To make the hospital segment more attractive to both domestic and foreign investors some other suggestions made by the industry focus on policy reforms.

As positive sentiment for doing business in India is resurfacing, in-flow of FDI in India is rising. Further, FDI in healthcare especially hospitals is understood to pay off rich dividends and good returns on investment in the long run.
.

Investors’ overview

Foreign Presence in Hospitals in India

In recent years, there is growing interest among foreign players to enter India’s healthcare sector
through capital investments, technology tie-ups, and collaborative ventures across various
segments, including diagnostics, medical equipment, hospitals, and education and training. For
example:

• Singapore's Pacific Healthcare has made its first foray into the Indian market, opening an international medical   centre, which is a joint venture with India's Vitae Healthcare, in the Indian city of Hyderabad.

• The Singapore based Parkway Group Healthcare PTE Ltd penetrated into the Indian health care market in 2003    through a joint venture with the Apollo group to build the Apollo Gleneagles hospital, a 325-bed    multi-   speciality hospital at a cost of US$ 29 million.

• Columbia Asia Group, a Seattle-based hospital services company, a worldwide developer and operator of    community hospitals, has started its first American- style medical centre in Hebbal, Bangalore. Columbia Asia    is the first hospital to enter the Indian healthcare market through  the Foreign Direct Investment route.

• Wockhardt, the international arm of the Harvard Medical School, which also has a strategic association with    Harvard Medical International, has set up a new hospital (a tertiary service provider) in Bangalore at a cost of    around Rs. 200 crores.

• The Parkway group has also entered into a joint venture with a Mumbai-based Asian Heart institute and    research centre to set up specialised centres of medical excellence in Mumbai.

• Max Healthcare and Singapore General Hospital (SGH) have entered into collaboration for medical practice,    research, training and education in healthcare services.

• Steris, a US$ 1.1 billion healthcare equipment company, plans to set up a wholly owned arm in India to sell its    devices and products in the country’s booming medical device market. Steris plans to make an initial    investment of US$ 1,00,000 to set up the wholly owned subsidiary.

• Apollo Hospitals Enterprise Ltd has entered into a joint venture with Amcare Labs, an affiliate of Johns Hopkins    International of the US, to set up a diagnostic laboratory in Hyderabad. An initial amount of US$ 2.2 million    have  invested and the laboratory is likely to be operationalin-2006.

• India’s first geriatric hospital, the Heritage Hospital of Hyderabad has formed a joint venturewith US-based    United Church Homes to recruit, train and provide placement to registered Indian nurses in USA.

• The US-based healthcare products major, Proton Health Care has made an entry into India with its range of    digital health monitoring devices and has a strategic tie-up with the Delhibased S M Logistics for distributing    its products in the Indian market.

India- Emerging Global Medical Tourism Destination

India is emerging as a preferred healthcare destination for patients across the globe.
Overseas patients and tourists from all over the world visit India for medical treatment. India is considered a highly effective centre for specialized treatments such as open-heart surgery, Brain Surgery, hip and knee replacement, paediatric cardiac surgery, dentistry, bone marrow transplant, Vascular surgery, Liposuction, Neurosurgery and Trauma Surgery, liver transplant, Dialysis and Kidney transplant, cosmetic surgery, and therapy of cancer, among others. Health tourism in India is becoming famous because of the hospitals and medical centers available with world class facilities and physicians at low cost on affordable rate. According to the new report of the RNCOS the medical treatment and tourism in India contributes annual revenues of around $400 millions to the country’s revenue.

Despite having the superlative countries like USA, UK, Canada, Europe, what makes India the Global Health Destination. To avail the benefits of low cost with world-class standardized medical facilities, more and more people from the West Asia, UAE, KSA, Afghanistan, Pakistan, Europe and America, USA and other SAARC countries are visiting India.

In India there are several health care hospitals, spa centres, medical resorts which are well equipped which are equipped with cutting edge technology to give the best health care treatment and care to the patients.

Cost of the medical treatment services in India is almost 30% lower to the western countries and in South-east Asia.Not only cost saving and timely treatment while you have to wait for a months in countries like UK, USA, Europe for your medical treatment.

Medical tourism in India for strengthening mental energy:

Due to its powerful base for learning yogic methods and meditation techniques, India attracts tourist who seek help in strengthening their mental energy. Famous yoga methods such as Raja Yoga, Hatha yoga, Kriya yoga, Karma yoga and Sahaja yoga founders and followers have their major branches and Ashrams in various parts of India. Since Meditation can help in relieving stress, anxiety and treating certain disorders like Insomnia (Sleep disorders), Cardio Vascular Disease and High blood pressure, India is considered the best place to learn meditation and yoga.

Beside medical tourism of India, Ayurvedic spa and resorts of India has played a significant role in the boom of medical tourism in India. Ayurveda treatments are all natural and have no side effects. More of all ayurveda gives lasting effects on the health and aims to treat the root cause of the illness rather then the symptoms of the illness. It cures the entire diseases mainly the immune system and offers relaxation of body and rejuvenation of mind and soul.

Well if you are really facing health problems medical tourism with help you to recover from the illness. Come to India and get the best medical support and health care services that assures quick recovery from your health problems.

Why India

Why should you opt for India for getting the most complex medical problems sorted out?

World-class services at affordable cost:

International patients come to India for treatment because of the world-class facilities available here at affordable costs. Moreover, there are no waiting lists or queues to baffle patients or their families. You get immediate attention and assistance in hospitals anywhere in India.

Skilled and well-qualified doctors:

Indian doctors and surgeons are well known throughout the world for their skills and research. This country offers you the services of some of the world's highest-qualified medical professionals along with top-class biomedical facilities.

Customized services:

Here, patients can avail healthcare benefits in facilities varying in size from small, specialized clinics to large, multi-specialty hospitals. India's offerings are classified into a range of categories that can suit every budget and every need.

Use of latest technologies:


Indian hospitals are equipped with highly advanced equipment and use latest technologies to offer sophisticated medical services that are easily comparable to those offered by developed countries.

Growing Trends:

As per estimates, around 1.7 lakh foreigners fly to India for medical treatment every year, to avail world class personalised healthcare services. Indian hospitals meet international standards of cleanliness and hygiene and their top-class infrastructure suits the needs of patients coming for treatments such as heart surgery, knee replacement, orthopaedic treatments, cosmetic surgery, eye care, dental treatment or any other healthcare need.



  Back To Home