Private Equity Firms Targeting India’s Medical Device Market
India’s medical device sector is experiencing a significant surge in private equity (PE) investments, driven by its rapid growth and promising opportunities.
Investment Trends:
- Increase in PE Transactions: Since 2017, the sector has witnessed approximately 59 PE transactions, with deal activity increasing 3.3 times compared to pre-COVID-19 levels.
- Sector Contribution: The medical devices sector’s share of total deal value has doubled from 6% (2017-2020) to 11% (2021-mid-2024), indicating heightened investor interest.
Notable Investments:
- Warburg Pincus and Meril Life Sciences: In February 2022, Warburg Pincus invested approximately $210 million in Micro Life Sciences, the parent company of Meril Group, India’s largest medical devices company.
- KKR and Healthium MedTech: In May 2024, KKR acquired Healthium MedTech, a leading Indian medical device manufacturer, from Apax Partners in a deal valued at $839 million.
Factors Driving PE Interest:
- Growing Healthcare Demand: India’s expanding middle class and increasing healthcare needs have made the sector attractive for investors.
- Government Initiatives: Policies such as the Production Linked Incentive (PLI) scheme and the establishment of medical device parks have created a favorable environment for investment.
