|
Expansion
Dr Lal PathLabs to have 50 lab—networks across India by 2009
Dr Lal PathLabs, India's largest pathology chain, will have
a network of 50 laboratories across the country by March 2009. The expansion
strategy will be powered by a mix of acquisitions and setting up own laboratories.
The acquisitions will be funded through internal accruals, venture fund Sequoia
Capital and debentures.
Said Dr Arvind Lal, Chairman & Managing Director, Dr
Lal PathLabs, "Given our credentials of being the oldest and the most sophisticated
lab in the country and having successfully operated 20 labs all over India,
we sensed a great need of setting up of quality testing labs across India especially
since 70 per cent of treatment decisions are based on laboratory tests."
The lack of Governmental regulation and accreditation have
resulted in proliferation of approximately 40,000 unorganised labs all over
the country, where quality is mostly compromised, thus resulting in poor patient
care and management.
Dr Lal PathLabs is accredited by the College of American
Pathologists (CAP) and the National Accreditation Board for Testing and Calibration
Laboratories (NABL). The company is, therefore, poised to take its quality services
into different parts of India.
Global trends support the consolidation theory. The US market
size is $40 billion compared to $750 million in India. A comparison between
the US and Indian data shows that the top three players in the US market control
about 50 per cent while in India, the top five players just about manage an
abysmal 8-10 per cent among themselves.
Said Dr O P Manchanda, COO, Dr Lal PathLabs, "Dr Lal
PathLabs has set for itself the goal of leading the process of consolidation
and garner a market share of 10 per cent in the next two-three years."
The company foresees an organised growth for the Indian diagnostic
industry with multiple acquisitions and tie-ups among Indian and global players.
In the current financial year, the company would be doubling its infrastructure
to 25 labs; of which 24 are greenfield ventures.
EH News Bureau
|
