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Inside-Out Approach to Healthcare Growth Funding in India | Kapil Khandelwal | TEDxSREC


in putting this whole inside out concept
back in 2010 this was the map that we
used bottom of a genomic makeup on a
and in 2010 one of the biggest red
lights that I put forward to the
government was that we are sitting on a
way back in 1998 when I was part of
premises task force of food and agree we
came back saying that you country is
sitting on a friend crisis because of
this man we first put the whole country
upside down and said that we are gonna
face an imminent health crisis that led
us to word with various governments
industries as well as the Planning
Commission various initiatives were
started on the last side what you see
was the result of an analysis he has a
country second largest populated country
has a disease burden because of our
genomic makeup and health risks are
which is more than proportionate to what
the world’s disease burden is and then
the supply to manage that is even worse
the situation like this would mean that
we go outside and import all the
healthcare resources you manage a crisis
or we look at working internally
so today I’m going to talk on two areas
of how we could do and work and bring
our solutions to address this crisis in
any crisis one in the healthcare side
and second on the licensure side well
for any successful venture or any
enterprise and I understand you just
putting together an incubator also in
your campus you need certain support
system first is second in land building
material to house then you need an
entrepreneur who could be the guiding
force and then in the healthcare side
need your medicines your med techs and
all that you are and they know it
how do we build that pipeline and my
focus of my talk today is how do you
bring that money in to actually seal
that out today we were just talking
Ravi’s here about you know how to be
seen some of the ventures how do we
so way back in 2011 when I was chairing
Abel which is the industry body for
their census in India that’s chair of
Finance and investment one of the
critical issues that we felt was you
know a lot of areas where you know large
multinationals sitting out of India
they’re not interested so many other
things in which case we need to develop
our own campuses like these respect for
really coming up with ideas so while I
was chairing the session we had members
from the Ministry of Science and
Technology department of technology
one of the things that he said was well
you know you have an incubator here the
guys will use the college and the
support ecosystem what after that is for
the front end or how do you work this
Bopper
and if you go to you know external
agencies they don’t just don’t
understand this industry if you say
biotechnology they say oh you’re doing
some computer work or you say Pharma in
some lampur it’s just no concept or at
least standing up you know what exactly
this industry was what’s happening so
within the late-night once started
working with the principal separately at
the Department of a technology that was
not allowed and we actually seen it a
this whole template was there taken up
by the Ministry of small and medium
enterprises
and security at that point in time to be
forward at what you have today is the
ten thousand corrode it is not a fun
terminated out of these ideas and this
whole concept so to conclude it then
it’s like you can go through a lot of
this stuff forward in terms of how you
got there are various base you would
probably get things moving if your
intent is right and the idea here is how
do you do it inside out then we have a
brilliant ecosystem sustainable and
which is working to say that could
potentially be having four or five
solutions for our own country coming out
of these sort of initiatives which could
be going on in the world as India and
these updates which I would like to just
outline in terms of what can be done how
we cannot be restricted just because we
don’t have the money we don’t have
way back in 2013 and I exited out of a
venture suggest first innovative venture
take a so just patients would come in
and Bonnie get is procedure back not
[Music]
and that said my thoughts in terms of
you know how do we as an alpha not
really if we want and have a successful
idea really trying to scale and how do
we get money at that point in time there
will be three options one was raised
money through private equity and that
private equity had its own strings
attached I would probably have to go up
and raise more money now laughter now
you can repeat myself
ultimately I would probably end up
giving a child or less water in that
venture perhaps go to the bank saying
here take my home is my or my belongings
let me I’m taking the risk putting the
money or go to any other Development
Finance description saying okay guess
what I am going to give you in future in
terms of the asset that would’ve build
up my land building medical equipment
model predict that is a burst of the
and give me that highly unsustainable
and that led me to think when I inserted
out of that venture there has to be some
big industry is a requirement of how to
probably break this whole cycle and mind
you at that point in time I had
superimposes for help for this map of
India at the time by 2025 India needed
three hundred and twenty billion dollars
of capital just to meet India’s
healthcare needs a global average path
they are sold out say that twenty
or who wills government just don’t have
money to sustain this there has to be a
veil which is what led me to think how
do we go and break the shell at that
point in time we kind of were looking
the real sexy stuff was you know flip
card all these you don’t do it internet
stuff and if if if we were to start
glamorizing this industry for an
investor we really needed to Hartford it
what’s in it this compared you know HCG
dr. la nada no but the three companies
and then you have this whole laundry
list of unicorns are away near the list
if you see the amount of capital because
one of the apprehensions in the
financing investigate that is the
private equity you’re back in any
development finance institution in this
country was why health care is as ahead
or even asset like it’s a lot of capital
so one of the things we said nobody it
does not and what you see in the ratios
over there is even your flip tax of the
one which has gathered the billion
dollars and still a kind of funds
consumers is canceling more capital
and I remembered now you know one of our
political leaders says the loss of will
so when is it that if you are not
healthy wealthy where will all these
scary as we consume whatever they’re
so that’s another parameter to change
the whole process this was a brilliant
slide that was created by folks at wiki
which is the industry body and if you
see cancer comedy cardiology this is an
example you just what you let us really
what we could do was that but we as a
country reduce as many cancer patients
paternity and how do you break this
shuttle because investors are always
going to be attracted to where money is
they always follow the money so we just
looked at two asset like models you know
what you see in blue line is exceeding
fingers but as Asia’s largest other one
was not which is the CD has been green
and that leads to believe there’s
something beyond this that given the
stock market rewards a company and
and what is it that that is needed for
investors to put more money and even the
least attractive space like oncology so
we kind of thought about it and we
worked all day it’s like I just want it
tight what we realized was stock market
was punishing companies that were
necessary as compared to companies which
were hazard light and then we kind of
went to focus there’s some fundamental
research on the US market this is where
we saw I’m sorry this is just not coming
here come over here which is your US
stock market us S&P and what you see
here is your health care need which is
performed ten times more then even the
and that let us put in in this first
healthcare bill we got a semi approval
in November of last year and three state
although I work with the Planning
Commission way back this whole
public-private partnership has not
really taken on and what we have
promised some of the state government is
we are going to give you commercial
records expiry at same time we are going
to create healthcare infrastructure
within your States in the private sector
with full responsibility to delivering
and improving healthcare quality it’s
not just that
when you started comparing what was on
the options have opened up for the
industry we hope to create a healthcare
infrastructure which is simply in terms
of the number of beds like Apollo at the
same time leaving the management of
healthcare to the experts
where we are coming in is we are kind of
monetizing the land and building which
is what it see if it going acid-like
clear and ensuring that you know the
stock market and the investors also
reward them at the same time we reward
our investors and our sponsors in
helping creating that infrastructure
that was required in this context
so while we put in that money what it
really does is pushes some of these
vital segments to release attractive to
you know mercenary investors actually
grow and become more attractive in the
process which is very vital for
maintaining the helpless next time but
this could be another larger TED Talks
issue which I can’t auction at the time
but over and above what we are doing in
terms of creating health care capacity
and quality in this country there are
other nine vectors of social impact that
we are creating through a fund
predominantly employment one bed that we
invest creates improvisation for 30
reducing the cost of capital so that we
can actually do more with DES and then
the first cycle of you know being helped
get cheaper better faster I put my talk
over here and I do hope these sort of
ideas do germinate out of India so that
we can bridge some of these shackles and
constraints that we have not only in
terms of raising capital or financial
capital but even in terms of creating
social impact and then perhaps come back
to you a lot in terms of how social
impact can also be created thank you
very much for a patient Gary
[Applause] [Music]
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