The Indian Healthcare industry is on a growth path with all areas of Healthcare including Pharmaceuticals, Medical Devices, Diagnostics, Biotech, Hospitals, Healthcare Delivery and Insurance playing a key role in the development of this sector.
We expect strong growth for the industry over the next several years, with some segments growing north of 15% annually. Welcome to Somerset Indus Capital Partners - a firm specialising in growth equity based investments in privately held, well-managed Indian healthcare companies seeking capital to scale-up profitable, proven business models.
Somerset seeks to make private equity and equity-related investments primarily in growth-oriented healthcare companies in India. The team will use its successful private equity investment experience, healthcare systems knowledge, in depth India specific healthcare experience and knowledge base to make investments in Indian healthcare companies that can deploy the capital successfully to grow their business and increase profitability. Somerset's investment professionals have committed a significant amount of personal capital.
Somerset expects to make controlling or influential minority investments in Indian healthcare companies, in connection with various transaction structures including leveraged buyouts, build-ups and growth financings.
Somerset Indus Healthcare Fund is led by Avinash Kenkare, a private equity professional with twenty years of successful investing experience in over fifteen transactions
Somerset Indus Healthcare India Fund is led by Mayur Sirdesai, a healthcare professional with over twenty years of experience in the Indian Pharma/ Healthcare Industry with both private equity, operational and consulting services related experience.
The Indian healthcare industry is on a growth path with all areas of healthcare including Pharmaceuticals, Medical Devices, Diagnostics, Biotech, Hospitals, Healthcare Delivery, Animal Health and Insurance playing a key role in the development of this sector.
Pharma forms the traditional bastion of this sector but the other areas are fast emerging with the advent of hospitals and other healthcare delivery platforms in all tiers of the market. With increasing affluence, access to healthcare is becoming increasingly important and large investments are being made to improve the access and expand the market either through market penetration, creation of new market segments or optimising existing market segments.
Historically, for Indian PE investments, the average deal size has been below $15 million , but with the advent of global private equity funds, the average deal size has been increasing, and increasingly, capital is seen chasing larger deals.
Somerset strategy is to target investments in the $5 to 10 million range where the need for capital remains significant, and where capital can be deployed most productively.
Although, buy-outs may gain favor in the longer term, India will continue to be a growth market, and the Fund will concentrate on growth equity investments in its sectors of focus.
As the PE market matures, and access to capital ceases to be a significant issue, Indian companies will value PE investors for their sector knowledge, operating expertise and ability to provide access to global markets.
Somerset focuses on the healthcare sector where its investment professionals have extensive knowledge, relationships with domestic players, and access to and experience dealing with global participants that can bring new technologies and provide access to new markets. The fund engages with its portfolio companies extensively in areas of portfolio expansion, talent acquisition and strategy and operational aspects.
Somerset will be an active long term value-adding investor with an ability to influence key decisions.
Terms of investment will be a key criterion for investment. Principal rights that the fund seeks will include:
Somerset will principally add value in the areas of:
Somerset invests in healthcare businesses in India. With India being a phenomenal growth story, a home to world’s largest and youngest population, it continues to strive for globalization, efficiency, socio-economic reforms and still battles the ever-perpetual healthcare challenges of affordability and accessibility. Somerset believes in playing its part in the growing need of private capital to overcome these challenges and have a positive impact on society and the lives of people.
Somerset firmly believes that Environmental, Social and Governance (ESG) parameters are integral to its role as an investor. Integrating ESG factors in investment decisions is vital in determining risks and opportunities, and ensuring long-term, sustainable value creation for the fund, for its portfolio companies, their management and employees, the environment, and society as a whole.
Our approach towards ESG is embedded in all aspects of our private equity investment process from initial investment selection, to subsequent value creation and exits, ensuring a sustainable long-term ownership structure into the future.
ESG is tightly integrated into our Investment Cycle
Somerset has adopted a comprehensive responsible investing policy, describing what is expected of Somerset as a fund as well as what is expected from portfolio companies. Somerset’s ESG policy is committed to supporting ethical behaviour in all of its activities together with investing in and working with the local communities in which it operates.
As a healthcare focused fund operating in a highly underserved region, Somerset aims to make a positive, transformational impact to its portfolio companies and their local communities above and beyond significant financial returns. By actively participating in this sector, Somerset aims to achieve sustainable and long term social impact by ultimately improving the lives of communities where it invests.
Our Impact Summary
Hexagon Nutrition Pvt. Ltd. is a home grown nutrition products company with a portfolio of micro-nutrient premixes and clinical nutrition products. Micronutrient premixes are supplied across 70+countries and Clinical Nutrition products such as Pentasure, Pedia Gold, and Obesigo are supplied to hospitals, and available over the counter. The strong product development and manufacturing infrastructure of the company is well poised to support the scale up of operations in the coming years. The aim of the company is to become a leading global nutritional products company with strong brands and presence in the domestic, semi-regulated and regulated markets.http://hexagonnutrition.com/
Browndove Healthcare Private Limited is a renal care consumables Company with long standing relationships in the renal care/ dialysis market in India. It has been successfully distributing an extensive range of products across the renal consumable value chain under its own brand name. To support growth and scale up of operations, the Company is strengthening its distribution coverage across India and also building a manufacturing base which will allow it to add on to its product portfolio. The vision of the Company is to be an integrated player in the renal care product market dealing in consumables, machines, fluids and pharma.http://www.browndove.com/
Prognosys Healthcare Private Limited is a company that provides Tele-Health solutions to the Healthcare industry. Its solutions are currently being used by both state government networks like Maharashtra as well as the private sector. The tele-health solution includes tele-consults, diagnostics (imaging, vital sign monitoring and pathology) and remote monitoring capabilities using various medical devices, which can help increase the access to healthcare in lower tier markets. The company intends to work with technology partners to expand its reach with the government health networks as well as provide specialty based solutions like cardiac care and home healthcare within the private sector.http://www.prognosysmedical.com/
Chayagraphics Healthcare Private Limited operates in the medical imaging consumables distribution space. The Company has a well-established distribution network especially in South India. The Company plans to launch its own branded products in the medical imaging consumable space and add a disinfectant product line to its portfolio. Towards this, the company is looking for sourcing products as well as strengthening its distribution network across India.http://www.chayagraphics.com/
Krsnaa Diagnostics operates state-of-the-art diagnostics centers that offer a combination of MRI, CT Scan, radiology and pathology services in metros as well as Tier I and Tier II cities. The Company partners with state government run hospitals, private medical colleges and large private hospitals to offer such services at highly attractive, affordable prices. This disruptive model increases access to MRI and CT Scan services in particular to all segments of society including lower and middle income groups.www.krsnaadiagnostics.com
Prognosys Medical Systems is a medical imaging equipment manufacturer focused on developing, manufacturing, and marketing digital radiology solutions for domestic and other developing markets. Prognosys is building a high quality manufacturing base and expanding its sales and service network to provide access to digital radiology solutions across small towns in India. Chayagraphics is a sister concern which focuses on medical imaging consumables distribution for the Indian market.www.prognosysmedical.com
Cygnus Medicare is a super-specialty chain of hospitals with a network of 100-bedded tertiary care hospitals across Delhi and Haryana. It operates a differentiated asset-light model by leasing the facilities and by adopting an outsourced model for capital intensive specialties.www.cygnusmedicare.com
Sandor Medicaids is a marketer, seller, and distributor of specialty pharmaceutical, diagnostic, and medical technology products in India. It focuses on providing high technology biomedical and biotechnology products to the critical care segment of hospitals.www.sandor.co.in
Sandor Medicaids has a joint venture called Sandor Nephro, a nephrology business providing dialysis services across the country. It currently provides in-hospital dialysis services through an implant model where the hospital provides nephrology support, space, and basic infrastructure and Sandor Nephro provides dialysis equipment, consumables, man-power, and services management. Sandor Nephro operates under the brand name 'Sparsh Nephrocare'.www.sparshnephrocare.com
Express Clinics is a provider of general practitioner, specialist consultation, and diagnostic services under one roof. It operates a chain of such clinics focused on providing a new age integrated healthcare model.www.expressclinics.in
Apex Hospitals Pvt. Ltd., a long existing Doctor family promoted tertiary care hospital group in Rajasthan. Apex offers advanced care in Cardiac; Neuro; Gastro; Uro; Nephro; Critical Care; Oncology Radiology; etc.http://www.apexhospitals.com/
Genworks Health Pvt. Ltd., an initiative of GE Healthcare in India . It is a digitally powered largest pan India medtech distribution platform offering products, services; solutions in areas of Maternal; New Born Care; Imaging; Cardiology; OT; Critical Care; Oncology; IVD.http://www.genworkshealth.com/
Somerset Capital Partners II LLC
C/o Rogers Capital Fund Services Ltd,
Rogers House, 5, President John Kennedy Street
Port Louis Mauritius
Somerset Healthcare Investment Advisors Pvt. Ltd.
106 Nirman Kendra, Dr. E Moses Road, Mahalaxmi,
Near Famous Studios, Mumbai - 400011