SRL Diagnostics, India’s largest diagnostic chain announces an aggressive expansion plan with an investment of more than Rs 300 crores in next five years. It has forayed into PPP with three state governments as part of expansion, i.e. Himachal Pradesh, Jharkhand and Uttar Pradesh to establish the labs in the state-run Government hospitals.
With an annual growth of 16 per cent in the first half (Apr-Sep’15), SRL is expecting a turnover of more than Rs 900 crores in the FY 2015-16. Five years down the line SRL to become Rs 2000 crore company, with plans to enhance its presence in African continent which is on their roadmap.
In the domestic market, SRL has entered into PPP with HP Government since 2013 to provide global quality diagnostics services to the people across the state in their Government Hospitals. The partnership was very successful as on an average daily accession in Himachal Pradesh government hospital had increased by 41 per cent in comparison to last few years. In HP, SRL now operates via 24 labs and on the similar lines, SRL also partnered with the Jharkhand government whereby SRL established its labs within the Government Hospitals in 12 districts in the current fiscal year.
Taking a leap forward, it has recently entered into a partnership with the Uttar Pradesh government to establish collection centers in 22 Districts to provide over 150 specialized tests. The reason is attributed to the increased awareness in quality diagnosis and advanced specialised tests that can be undertaken in SRL accredited labs.
Commenting on the investment and expansion plans, Sanjeev Vashishta, CEO, SRL Limited, says “The infrastructure development in Indian diagnostic sector is limited and the Government has realised the need for PPP model to provide affordable and accessible diagnostics to the masses and to fill this existing vacuum. We, at SRL are aligned with the Government’s objective to initiate right diagnosis and therefore right treatment. We are also looking forward to extend our relationship with other state governments to ensure accurate and quality diagnosis is available to maximum number of people in the country. With plethora of unaccredited labs in these cities, we believe such initiatives will also help raise the benchmark in diagnostic services in tier II and III cities.”
He further adds that “The Healthcare sector is growing at a tremendous pace in our country. Only 20 per cent of healthcare happens in public sector, giving scope of about 80 per cent to the private sector. Given the opportunity, we are expanding our business model and aiming to open 30-40 labs every year.”
The company is coming up with 150 Labs in domestic market and 50 labs in International market in the next five years, which will be an addition to 306 labs that SRL has till now. They have plans to come up in each and every district of the country. The domestic labs will come up in cities such as Delhi, Kanpur, Cuttack, Hubli, Faizabad, Goa, Nashik, Allahbad, Karimganj etc and the international labs will come up in countries such as Congo, Nigeria, Nepal, Sri Lanka, Bangladesh and Myanmar.