'The real competition isn’t bigger players...': Metropolis Healthcare's Ameera Shah on the unorganised market

Metropolis Healthcare Limited has announced the acquisition of Scientific Pathology, a diagnostic chain in Agra, to expand its business-to-consumer (B2C) network in Western Uttar Pradesh. The acquisition, valued between ₹55 crore and ₹83 crore, will be executed through a Business Transfer Agreement (BTA), with Metropolis taking over Scientific Pathology’s laboratories and collection centres. Ameera Shah, Promoter and Executive Chairperson of Metropolis Healthcare, spoke to Business Today about the deal, the company’s growth plans, the competitive landscape, pricing strategies, and the role of technology in diagnostics. Edited excerpts from the interview:
 
BT: What was the rationale behind this acquisition, and why Agra?
 
AS: Scientific Pathology has been a trusted name in Agra for 40 years, founded by Dr Ashok Sharma. It offers around 400 tests, operates three laboratories, and runs 15 collection centres. Dr Sharma wanted to expand further in Western UP but recognised the challenges of scaling up alone. Partnering with Metropolis strengthens his presence in the region.
 
Scientific Pathology is already a market leader in Agra, and with this acquisition, Metropolis will become the second-largest diagnostics player in Western UP. Instead of setting up a new lab from scratch, acquiring Scientific Pathology provided a stronger platform to expand our market share.
 
BT: How does this fit into Metropolis’ expansion strategy?
 
AS: We have successfully followed this model multiple times—taking a majority stake in a leading local pathology player and enhancing operations through efficiencies, technology, and expertise. Our focus is to retain the brand’s local strengths while improving service quality. Agra residents will benefit from a broader test menu and improved technology. Scientific Pathology currently derives 90% of its revenue from B2C services, with no B2B presence. We plan to introduce B2B offerings and expand our footprint in Agra and Western UP.
 
BT: Are there any new locations in the pipeline?
 
AS: We are focused on three key areas: expanding from 750 cities to 1,000 smaller towns and rural locations, strengthening our market share in newly entered cities, and deepening our leadership in established regions.
 
BT: The acquisition is valued at ₹55 crore to ₹83 crore, with a 12.2x EBITDA multiple. How does this compare with past deals?
 
AS: The valuation is in line with our previous acquisitions. It is based on recent financials, and as of now, we are valuing it at ₹65 crore. The final payment will be adjusted based on audited results for June 2025.
 
BT: How will this impact Metropolis’ revenue growth and margins?

AS: Metropolis has an organic growth rate of about 13%, and this acquisition will add to that. Scientific Pathology is already profitable, so we will focus on scaling it up rather than short-term profit enhancement. While cost synergies will be achieved, a portion of those savings will be reinvested in expansion. Our priority is revenue growth over immediate margin improvements.
 
BT: Will you maintain Scientific Pathology’s B2C focus, or expand B2B?
 
AS: We will continue to grow B2C while expanding B2B. Even if B2C’s contribution reduces to 60–70%, both segments will continue to grow.
 
BT: How do you plan to compete with Dr Lal PathLabs, Agilus, and unorganised players?
 
AS: About 85% of the market is still unorganised, making them our real competition rather than Lal or Agilus. The market is expanding with new patients and emerging diagnostic tests. Growth comes from providing high-quality reports and excellent service, and we are confident in our ability to do so.
 
BT: What is your pricing and growth strategy—organic or acquisition-led?
 
AS: Most of our growth will be organic, but we will consider acquisitions that add value. Organic growth remains our priority—if you cannot build a business organically, there is no point in doing it.
 
BT: How will Metropolis leverage digital health and AI-driven diagnostics?
 
AS: We already use technology for report authorisation, customer engagement, and patient reminders. AI is helping with specific tests and improving efficiency, though full integration into pathology will take time. AI will not replace doctors but will assist in routine tasks while experts focus on complex cases.
 
BT: The market is shifting towards quality-based competition. How is Metropolis adapting?
 
AS: Quality has always been key. If someone has cancer, accuracy matters more than price. When online players entered with lower-priced wellness packages, some associated diagnostics with cost. But for serious illnesses, price is secondary. We focus on high-quality diagnostics for critical patients.
 
BT: Are you considering expansion outside India?
 
AS: We are already present in five African countries, following the same model as in India. Many samples from these countries are sent to India for specialised testing, and this model will continue to grow.
 
BT: Where do you see Metropolis in five years? How do you compete with digital players like Tata 1mg and PharmEasy?
 
AS: What Metropolis does cannot be easily replicated. At critical moments, doctors and patients trust us for essential diagnostic decisions. Setting up a digital platform and offering low prices is simple—we have already done it. But our main strength is in delivering scientifically accurate and reliable reports.

We are currently the second-largest diagnostics player in India and are closing the gap with the market leader. If we continue focusing on our strengths, the next five years will be highly positive.