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 Indus Capital Partners seeks to make private equity and equity-related investments primarily in growth-oriented healthcare companies in India. Somerset is led by Avinash Kenkare on the offshore fund side, a private equity professional with eighteen years of successful investing experience in over fifteen transactions, and duly assisted by Mayur Sirdesai on domestic fund side, 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 Fund 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. The expectation is that Avinash will use his successful private equity investment experience and healthcare systems knowledge together with the able assistance of Mayur's 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 to the Fund.
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.
The Fund's strategy is to target investments in the $5 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 Indus 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.
Fund 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:
Fund will principally add value in the areas of:
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
Somerset represents an opportunity to invest behind a team led by an experienced and disciplined US investor with a very successful investment track record with the assistance of an individual with over 15 years of experience in the Indian healthcare industry who has first hand knowledge of the Indian healthcare environment.
Somerset Indus Capital Partners LLC
c/o Kross Border Trust Services Ltd.,
St Louis Business Centre,
CnrDesroches & St Louis Streets,
Port Louis, Mauritius