(By Indranil Sen Gupta) THE YEAR OF DECLINE.
Investment bankers across the nations are biting nails to find investments opportunities in 2011.It has become quite difficult for the investment bankers to find feasible projects where return on investments can be achieved with an big jump. The year 2011 was quite difficult year for the IB segment. The objective of this article is to dig out the opportunities in Indian pharmacy business over the next decade.The revenue of investment banks in India has declined to $515 million in 2011, down 30% from the $741 million generated last year, according to data from Dealogic Holdings Plc. The decline is revenue in backed by poor performance of the Stock market and stringent interest rate policy imposed by RBI affecting the margins and overall performance of the Indian companies. Equity capital market transactions slumped 67.26% to $9.76 billion this year and debt capital market volume fell 13% to $39.48 billion. Domestic M&A volume stands at $13.8 billion this year, down significantly from the record $45.9 billon announced in 2010, Dealogic data shows.
This is also the lowest level since 2005, when domestic deal volume was $12 billion. Inbound M&A volume has reached $30 billion, slightly behind the record volume of $34 billion announced in 2007.Macro economic situation has damaged the prospects of the Investment Bankers. In fact last time I covered a brief note on the performance of the PE in Indian economy and their pains of struggle. Please click here to read the previous article on PE in Indian economy.
THE GEN-NEXT PAINS.
Despite of these pains for the investment bankers I find one sector which will continue its growth journey despite of all tremors. India is having a population size 3 times of the US population. Hectic life schedule followed with modernized living styles has increased the complexity of the diseases resulting more stringent problems for the doctors to find remedy. Indian pharmacy sector is poised for an huge growth where within the next 8 years from now (2020) Indian pharmacy sector will grow to an
In my research I went through few hospitals where I interacted with many doctors to find the real growth areas and the possible avenues which will attract the flow of capital. Cancer has become one of the most common disease among the gen-next. The real pain of cancer is much less as compared to the price of the medicines required for treatment of the same. The price of one of the cancer drug manufactured by Bayer's is Rs 2.8 lakh. Well now one can understand the pain of the treatment.