Indian Drug Magnate Sets Sights on Health Care Sector - NYTimes.com
Interesting story - tracks the history of
Ranbaxy, as well as how the next generations take ideas learnt in advanced markets and apply them to staid domestic companies - thereby increasing valuations and opening new markets. The move to make Fortis the
hospital provider of choice for a pan-Asian
population is very savvy: "
Last year, the Indian health care market was estimated at $38 billion, and given the country’s fast-growing, increasingly affluent population, more and more Indians are suffering from lifestyle diseases common to developed countries. India already has the largest number of diabetics in the world after China, for example, yet Indians still spend only $55 a year on health care.
“There’s a huge gap in India,” said Mr. Singh. “The health care market in India is very fragmented. The corporatization of health care is still emerging.”
While 70 percent of the country’s hospitals are government-run, private hospitals treat 70 percent of all patients, he said. And most private hospitals are small, with fewer than 30 beds, providing a big opportunity for larger operators like Fortis to use economies of scale to lower prices and increase profits. By introducing more advanced treatment methods, Fortis also aims to lower the average stay per patient, allowing it to increase volume..."
