Giving Diagnostics The Tag Of Dependability
From 10 clinical labs in 2005, Dr. Lal PathLabs has become the largest diagnostic chain in North India with over 190 clinical labs, 2,100+ patient service centres and over 5,600 pick-up points across the country. The company has many firsts to its credit. “In 2015, we became the first pathology player in India to be listed on the stock market. In 2016, we crossed the 10 million patients’ mark. In 2018, we crossed Rs 1,000 crore in revenue and became the first diagnostic services firm to do so with a record 15 million patients,” highlights Om Manchanda, CEO, Dr. Lal PathLabs. He adds that after Delhi NCR the company’s focus in the last few years has been on the eastern region and rest of India. To strengthen its presence in East India, the company launched a regional reference lab in Kolkata in 2018. “We have witnessed reasonably good success across India in the last few quarters,” Manchanda states. With over 3,368 diagnostic tests and related healthcare tests and services offered, Dr. Lal PathLabs has proved its capability in performing substantially all of the diagnostic healthcare tests and services currently prescribed by physicians in India.
Dr. Lal PathLabs operates two major business lines: a diagnostic chain for walk-in patients and a business-to-business model that caters to hospitals, which refer patients to it for tests. Both business lines contribute almost equally to its business. The company claims to have built its franchise model in such a way that it guarantees self-sustainability. “We look for partners who are personally interested in the healthcare space and have some background of the industry,” Manchanda says.
“The investment is not high as retail space requirement is 250-300 sq. feet. The initial investment is about Rs 3 lakhs which goes into equipment and furnishing,” he shares. According to Manchanda, the company ensures that the return on investment (ROI) is over 24%. In addition, it supports franchisees through investment in training, quality processes, and by giving them marketing, logistics, IT and sales support.
Franchising since: 1951
Total outlets: 2,569
Investment: Rs 3-5 lakhs
Area: 250-300 sq. feet
Breakeven: 6-12 months