In the coming year, the healthcare sector in Tamil Nadu could witness a consolidation towards multi-speciality institutions through mergers and acquisitions while standalone entities would find the going tough, according to C. Venkat Subramanyam, Founder and Director, Veda Corporate Advisors.
“Multi-specialities will see more consolidation, more M&As (mergers and acquisitions),” Mr. Subramanyam said at the valedictory of TANCARE 2025, a healthcare summit organised by the Federation of Indian Chambers of Commerce and Industries (FICCI). “The private equity game is more or less over except for chains of considerable size. Single specialities like eye care and diagnostics will also see more amount of M&As with larger players going in for private equity and IPO,” he added.
However, venture capital and private equities are expected to flow into some of the emerging single-specialities, such as geriatrics, continuum care, and health tech. The medical equipment, devices, and consumables segment is expected to do well in the next two years, he observed.
Wherever private equity enters, the cost of operations goes up, forcing smaller entities to eventually fold. Succession, too, was becoming a challenge in some of the healthcare chains triggering consolidation and willingness to look at controlling stakes. There is also opportunism that makes healthcare entrepreneurs prefer transactions in the face of attractive valuations, Mr. Subramanyam maintained.
