Big players eye labs

The massive, but hugely fragmented, diagnostic sector is seeing some corporate action. Healthcare majors SRL Ranbaxy, NPIL Laboratories, Dr Lal Pathlab and Metropolis Health Services are consolidating their positions in the sector.

“The participation of established corporate players is welcome and will, hopefully, improve standards and usher in professionalism,” says Amira Shah, ED of the Mumbai-based Metropolis Health, which is expanding its base of 46 labs in India through acquisitions.

The corporate sector currently accounts for 8 per cent of the Rs 10,000-crore diagnostics market, which is served by 45,000 labs, says Girish Mehta, President and Business Head, NPIL Laboratories. Sanjeev K. Chaudhry, CEO, SRL Ranbaxy, says his 40-lab network offers high-end procedures like real time PCR (Polymerase Chain Reaction) and FISH (Fluorescent in situ Hybridisation). “Our labs require investments of Rs 30-40 crore,” he says. “Today, anyone can open a pathology lab,” rues Shah. But that may change soon.

— Kapil Bajaj