The over 11,000-crore luxury, beauty and wellness sector is set to attract significant investor interest as private equity firms look beyond core sectors for investment.
“The wellness sector in India is attracting new players as well as private equity funding, and it is a natural progression considering the phenomenal growth across verticals in this space,” says Sandeep Ahuja,MD, VLCC Healthcare.
As per a report by FICCI-Ernst and Young in 2009, India’s wellness market is expected to grow at about 30-35 percent year-on-year due to rising consumerism, globalisation and changing lifestyles. Rising disposable incomes, increasingly demanding and stressful work-place conditions and sedentary lifestyles are the growth drivers for the wellness industry. “The definition of wellness has changed from luxury to necessity as it is now a need for all,” said Ahuja.
Investors are sensing a big opportunity in the wellness sector where less than 5 percent of the market is being serviced by organised players. “Investors can derive immense value from the sector which is catering to a far large target audience than just being a niche offering as was the case earlier,” quoted Arun Nataraja, MD,Venture Intelligence.