CASE STUDY
Indian Growth Portfolio I (IGP I)
PRIVATE EQUITY | INDIA
Launch
Q2 2020
Industry
Healthcare
Location
India
As one of the world’s most populous and fastest growing economies, India represents an incredibly attractive investment destination for Gulf Islamic Investments. In 2020, GII made its Indian investment debut with India Growth Portfolio (IGP-I) comprising significant minority stake investments in a portfolio of healthcare companies, including an award-winning chain of multispecialty hospitals and the country’s leading in-vitro diagnostics (IVD) firm that manufactures reagents and medical equipment.
India’s healthcare sector is currently ranked among the top three healthcare markets globally and is set to reach a market size of USD 300 billion by 2022. Moreover, the healthcare sector is currently significantly undersupplied assuring the presence of robust demand drivers and future growth.
Healthcare has been identified by GII as an attractive, non-cyclical and growing sector propelled by several trends such as ageing, lifestyle diseases, and lately the COVID-19 pandemic. Here’s a more detailed look at the investments within IGP-I:
i) An award-winning multi-specialty hospital chain based in western India
A market leader, this chain is highly regarded for cardiac care, with almost 40 percent market share of the total cardiac care segment in the state. It is an ideal mix of owned hospitals and asset-light cardiac units in third party hospitals, together with other sought-after super specialty verticals such as neurology, nephrology, pathology and orthopaedics.
The chain served 120,000 patients in FY21 at a capacity utilisation of 75%. The hospital chain’s domicile market is significantly underserved – with a doctor:patient ratio of 1:10,000 – which stands significantly below the World Health Organisation’s minimum prescribed ratio of 1:1,000. For this reason, GII believes there is significant opportunity for growth.
ii) A top diagnostics company that manufactures market reagents and medical equipment, based in southern India
With a product portfolio of 2,000+ reagents and equipment and catering to over 20,000+ customers globally, this diagnostics firm is India’s second largest IVD player. The company has a 3 percent share of the Indian IVD market and operates India’s largest state-of-the-art FDA compliant reagent manufacturing facility.
Given the tremendous growth opportunities in India and the success of IGP-I, GII is currently slated to launch its second instalment of the India Growth Portfolio – IGP-II in Q3 2021. The portfolio will encompass multi-sector investment opportunities amounting to over $50 million.
