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India’s Healthcare and Pharmaceutical Industry Witnesses ₹2,61,900 Crore in Investments (2022-24)

Written by: Aayushi ChaubeyUpdated on: Mar 11, 2025, 12:42 PM IST
India's healthcare industry attracted investments worth ₹2.61 lakh crore in 2022-24, driven by private equity, M&As, IPOs, and tech integration.
India’s Healthcare and Pharmaceutical Industry Witnesses ₹2,61,900 Crore in Investments (2022-24)
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During 2022-24, India’s pharmaceutical and healthcare industry attracted total investments worth ₹2,61,900 crore. As per reports, increasing insurance penetration, growing demand for high-quality services, and post-pandemic resilience are favourably reshaping the industry. 

Prominent M&A Deals Favouring India’s Healthcare Sector 

The report suggests that mergers and acquisitions of hospitals accounted for nearly 40% of the total transactions and were valued at ₹58,840 crore. Some of the other prominent M&A deals were:

  1. Mankind Pharma’s acquisition of Bharat Serums And Vaccines 
  2. Max Healthcare completed the acquisition of a 64% stake in Jaypee Healthcare to gain control of its hospitals in Bulandshahr, Noida, and Anupshahr. 
  3. Cipla’s acquisition of Ivia Beaute’s personal care and cosmetics business. 

IPOs and Private Equity Investments Drive the Healthcare Sector’s Growth

India’s healthcare and pharmaceutical industry also attracted private equity investments worth ₹43,310 crore. This accounted for 38% of total transactions. Indian hospitals also raised ₹4,070 crore through initial public offerings and attracted foreign direct investment worth ₹27,140 crore.  

Technology Integration and Industrial Consolidation Drive More Investments 

Increasing technology integration and rapid consolidation of multispecialty hospitals have led to the growth of these investments. Private equity investors have zeroed in on single-specialty hospitals providing services for in-vitro fertilisation (IVF), nephrology, and oncology with an investment of ₹12,220 crore. However, some challenges still persist. 

Addressing Healthcare Gaps to Enhance Profitability and Market Presence 

By addressing gaps in urban-rural healthcare accessibility, companies can enhance their market presence. Nearly 60% of hospital beds are concentrated in large metropolitan cities. By accelerating digital adoption and introducing innovative healthcare financing models, companies can enhance healthcare equity in India and boost their profitability. 

Conclusion

India’s healthcare and pharma industry is witnessing robust growth, driven by private equity investments, strategic M&As, and technological advancements. By enhancing telemedicine accessibility and enhancing healthcare services in rural areas, companies can benefit more from the evolving industry landscape.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

Published on: Mar 11, 2025, 12:42 PM IST

Aayushi Chaubey

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