Sabre follows a thematic approach for investments, where it has identified a few sectors and has clearly articulated an investment strategy for each of them. For its latest fund, the team has narrowed down its focus to sectors such as healthcare and urban infrastructure, especially including renewable energy, waste management and water and waste water projects.
Sabre has been investing in the Indian healthcare delivery sector for over 5 years where it has evaluated over 200 investment opportunities. The cumulative wealth of knowledge coupled with the experience of managing 2 successful investments in Indian healthcare has helped Sabre validate and refine this focus area for its latest fund.
A multitude of factors including the perennial demand for healthcare, India’s favourable demographics, the severe inadequacy in healthcare infrastructure, increasing insurance penetration, proven healthcare delivery models, technological developments and the emergence of India’s indigenous medical device manufacturing capabilities bode well for an investment case across these verticals. The fund will focus on segments with favourable growth prospects, use capital efficient business models across segments comprising hospitals, diagnostics, day care, single specialty, pharmacy, biotech, medical devices, clinical research and wellness.
India’s conventional power sector thwarts the country’s economic development due to high power deficits and burgeoning cost of generation. To address these energy challenges, there has been an increasing thrust towards promoting renewable energy in India. The Government, through the Ministry of New and Renewable Energy has formulated a number of plans and policies to fulfill its mission of having per capita energy consumption at par with the global average level by 2050, through a sustainable and diverse fuel-mix. Besides providing an ecologically sustainable source of power, renewable energy addresses concerns on climate changes by increasing the share of clean power, generates employment opportunities, provides electrification in rural areas and reduces dependence on costly oil & coal imports. The fund will focus on investments into companies operating in segments such as solar, wind, biomass and small hydro projects.
Water and waste water treatment
India is at the cusp of water insecurity as it houses ~ 17% of the world’s population but has only ~4% of the world’s water resources. Moreover, pressure on water is rising with rapid urbanization, growing population, industrialization and climatic changes. India’s water demand-supply is forecasted to see a ~50% shortfall, with demand growing at a CAGR of 40% between 2000 to 2025 while the supply side is finite. This has increased the government’s focus on the water and waste water treatment area with regulatory policies talking about management of water resources v/s development of water resources. The fund will focus on investments in segments such as industrial and municipal water transmission and treatment, as well as across the value chain including equipments, technologies, projects, etc.
India’s growing population, industrialization and rapid urbanization has led to generation of huge quantities of municipal, industrial, biomedical and e-waste in the country. This waste, if untreated, can aggravate the existing environment problems in India thus making efficient collection, transportation, segregation, processing and disposal of waste of paramount importance. As a part of public health and sanitation, the government has also formulated various bodies and policies to provide an impetus to the sector. The fund will focus on investments in all verticals across the value chain.