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Reliance aims to enter into diagnostics franchise

Vaishnavi Gupta
Vaishnavi Gupta Dec 13 2019 - 2 min read
Reliance aims to enter into diagnostics franchise
RLS will be helping franchise partners in hiring the right talent, training of franchisee lab staff, IT support and admin support.

Reliance Life Sciences (RLS), the biotechnology subsidiary of Reliance Industries Ltd, is planning to set up pathology labs across India.

For diagnostics business, RIL is eyeing to partner with local entrepreneurs. It is further reportedly looking to tie up with doctors, existing pathology labs and hospitals.

RLS is looking to set up a network of pathology labs. Initially, the company aims to build 20-30 labs. It is reportedly looking at a revenue-sharing model where the revenue sharing would be on net sales basis of 15:85. RLS will be keeping 15%, but while the cost of setting up labs would be on the franchise.

RLS will be helping franchise partners in hiring the right talent, training of franchisee lab staff, IT support and admin support. The company would also offer pathologists to these franchises.

The company will be following a hub and spoke model. This means that there will be one regional hub that will offer ‘super-specialised’ tests, while the chain of network labs will be providing routine tests generally offered by diagnostic labs. It is further planning plans to set up collection centres and points where tests can be collected and sent to the regional hub or the network labs for processing.

A person aware of the development said, “RLS is selling it as a low investment-high return entrepreneurial joint venture. It has approached a number of players in the industry to partner with them to set up these labs.”

In India, there is a growing demand for diagnostic services backed by increased insurance penetration. Reliance will compete with Dr. Lal Pathlabs, Metropolis Healthcare, SRL and Thyrocare, which dominate the market.

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