Oct 4 (Reuters) - Belgium's Verlinvest aims to double

its annual investment in India within three years, a top

executive said, focusing on healthcare and lifestyle companies,

as it bets on the growing spending power in the world's

fastest-growing major economy.

"India is the winning market for Verlinvest in Asia, so we

are allocating more resources and team focus to India as returns

on investments are improving," Arjun Anand, managing director

and head of Asia, said in an interview with Reuters earlier this

week.

Verlinvest, which has invested more than 100 million euros

($110.3 million) in India annually over the last few years, will

double its allocation in the next two-three years, Anand said.

He did not disclose the company's total investment or rate of

returns since entering the market nearly 15 years ago.

Verlinvest already has stakes in Indian yogurt-maker

Epigamia and coffee chain Blue Tokai, and is looking to boost

its investments as India outperforms other major economies,

driven by a more aspirational middle class.

The firm, which has over 2 billion euros in assets under

management, counts brands such as vegan milk maker Oatly ( OTLY )

, coconut water seller Vita Coco ( COCO ), and pet

products retailer Chewy in its portfolio.

Indian healthcare and lifestyle companies currently comprise

less than 10% of its portfolio, Anand said, below the global

average of 25% in healthcare and nearly 20% in lifestyle

businesses. More than half its capital is in consumer firms.

While the company aims to boost its investment in India,

Anand says there are challenges as well.

It takes longer to book returns on investments and takes

roughly a decade to exit stakes, compared to five-seven years

elsewhere, he said, adding that the depreciating rupee also

hurts returns.

Despite these issues, Verlinvest is investing more in India

as the country "offers a much greater growth opportunity and

that makes returns attractive," Anand said.

($1 = 0.9063 euros)