Aswath Damodaran Believes This Sector Will Be The Next 'Great Story In India' | EXCLUSIVE

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Category: Investment Insights

Tags: GrowthHealthcareIndiaInvestmentMarkets

Entities: ChennaiIndian healthcarePune High RoadUS healthcare

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Summary

    Healthcare Opportunities in India
    • Indian healthcare is expected to see huge growth due to increased discretionary income.
    • Historically, many in India could not afford healthcare, but this is changing.
    • There is a growing presence of hospitals and MRI centers in cities like Chennai.
    • Healthcare spending in India is anticipated to rise, similar to trends seen in the US.
    • There is potential for a uniquely Indian healthcare model that differs from Western approaches.
    Investment Potential
    • The Indian healthcare market offers significant investment opportunities.
    • There is interest in companies that cater specifically to the Indian market rather than replicating Western models.
    • Finding a company that successfully taps into the Indian healthcare market could yield substantial returns.
    Takeaways
    • Watch for growth in the Indian healthcare sector as incomes rise.
    • Consider investment in healthcare companies tailored to the Indian market.
    • Look for innovative healthcare models that address India's unique demographics.
    • Monitor the rise of health insurance and diagnostic services in India.
    • Explore the potential of private healthcare businesses in India.

    Transcript

    00:00

    Do you think that there are more stories like that? Is there anything right now where you see a great story which is not yet tapped in the Indian equity cont?

    I think the places to look are in healthcare because I think Indian healthcare is essentially a market we're

    00:16

    going to see huge growth because as people get discretionary I mean I grew up in an India where there were people who never went to a doctor in their lifetime because they couldn't afford to go to a doctor. hospitals.

    You you know drive around the city to find the hospitals. I was in Chennai, you know, 5 days ago and you drive down Pune High

    00:33

    Road. There are 16 hospitals and MRI centers.

    Clearly, people as they have discretionary income are able to spend more money on health and we know how that plays out in the US. 20% of the GDP is in healthcare because as you get more prosperous and you get older both of

    00:49

    those will play out as so I think healthcare spending in India is going to go up it's the question is who's going to benefit from it right and the companies that are out there are trying you know the hospitals you have the health you have health insurance companies that are starting to show up

    01:06

    that ecosystem is going to start to see more players and I'd be very interested in in India specific but right now what we're seeing as players that replicate what you see in the western markets right the insurance companies the the MRI the the diagnostics but there's

    01:24

    probably a version of a healthcare company that is tailored to India which is going to be very different than the healthcare company you would create for a market like the US a billion three people spread out across a country where income is widely variable there might be

    01:42

    a healthare a model that actually is able to tap into that very different market. I haven't seen one at least one that is public yet.

    But I've talked to people who have private healthcare businesses who are tapping into hey we're trying to build a healthcare company that's more attuned to Indian

    01:57

    healthcare rather than try to replicate what you see in US healthcare. So I I'm keeping my eyes open for one of those companies the entry because I think if you can find that space that's potentially a 10bagger a company that could really do

    02:13

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