Metropolis Healthcare Limited which is a Mumbai based chain of laboratory and diagnostic centres, is planning to invest around Rs 75 crore this year to set up 15 laboratories and 75 collection centres in India.
We will be funding this Rs 75-crore investment through internal accruals, Ameera Shah, MD and CEO of Metropolis Healthcare, said adding it cost around Rs 1 crore to set up a lab and around Rs 50 lakh for a collection centre.
The company has 70 labs and 500 collection centres spread across 200 cities and towns in India. We are planning to add 75 collection centres and 15 labs every year over the next few years to support our aggressive expansion plans, she added.
India, which currently lacks in quality diagnostic care, has a lot of untapped potential. So, we are looking at penetrating deeper into Tier III and Tier IV cities and smaller towns, she said. The well-equipped labs would be located in cities such as Ahmedabad, Jaipur, Chennai, Kochi, Bangalore, Amritsar, Patiala and Gurgaon.
The company is targeting 40 per cent year-on-year growth. We have been seeing good growth over the last few years. And with our lined up centres and labs, we expect to see 40 per cent y-o-y growth in the coming years, Shah said.
Metropolis Healthcare, founded by Dr Sushil Shah in 1981, recorded a turnover of Rs 350 crore in 2011-12. It now has 85-plus diagnostic centres and over 600 collection centres across India, Sri Lanka, South Africa and the West Asia. It had raised $85 million (around Rs 375 crore) from Warburg Pincus, a US-based private equity firm, in June 2010.
It has opened its first greenfield venture, its new laboratory and testing facility at Madhapur in Hyderabad to tap the diagnostic requirements in Andhra Pradesh.
The diagnostic laboratory industry is estimated to be about Rs 10,000 crore in India and is largely fragmented and unorganised.