India-based HCL group invests in Bharat Family Clinic to bet on preventive healthcare market- report
A buzz has been created by India-based IT and technology firm HCL's foray into the healthcare space with the equity position it has taken in Bharat Family Clinic, the Business Standard. A formal announcement about the venture is to be made later this week, the report said.
The Business Standard learned that the investment was made to enable HCL to capitalize on the wellness and preventive healthcare market. Doctor-on-call at home and other value-added services could be the focus of the chain. Bharat Family Clinic, which is now called HCL Avitas, has two outpatient clinics located in Noida and Gurgaon.
According to experts, the demand makes the investment very timely. Since this is a niche area, the entry of HCL into the primary healthcare and wellness segment could have a lot of takers. Recently, healthcare has been viewed as a sector that can withstand recession and where income is certain, the report said.
Corporate groups with cash to spare have also been lured into the sector because of this. Private equity and venture capital funds as well as BK Modi's Spice Global has also made investments in the segment. Saket City Hospital in Delhi has been backed by Spice Global. Overseas investment firms have also arrived in Indian shores. A joint venture was formed between the Kirloskar group and Toyota Tsusho Corporation and Secon Hospitals for a super specialty hospital in Bangalore. Singapore-based Pacific Healthcare and Columbia Asia Group, a hospital services firm based in Seattle, have also entered the Indian market, the report said.
In an interview with the Business Standard, Medanta-the Medicity Chief Executive and Managing Director Naresh Trehan said, "There is a huge space in health care and investments are welcome in this sector. It is a great idea."
The healthcare sector in India is expected to reach $100 billion by next year. By 2020, the growth is forecast to reach $275.6 billion. In 2010, the market was estimated at only $40 billion, the report said.