The Indian healthcare market as a whole is growing at a compounded annual growth rate (CAGR) of 22.9 percent during the last five years and is expected to touch US$ 280 billion by 2020. According to a recent study by the industry body ASSOCHAM, the Indian private hospitals' segment is estimated to reach a level of US$ 125 billion by end of this year with a CAGR of 20%. There is a requirement for an additional 600,000 to 700,000 beds in India over the next five to six years. No wonder owning and operating hospitals in India appears to be one of the most lucrative businesses today.

Every parameter, metric looks attractive. A vast number of foreign investors, domestic businesses, corporates, builders, businessmen, tend to view the hospitals as a great investment and commercial opportunity with low entry barriers, low competition, high demand, relatively easy to run the business. The…