Lifecare Medical Centre, a division of Life Care Diagnostic & Research Center currently operating out of Mumbai, has chalked out a pan India expansion for which it is looking to raise funds either through Private Equity (PE) infusion or venture capital (VC). The company has slated both organic and inorganic growth path to increase its footprint.
"Going forward, we plan to open multi-speciality centres followed by collection centres for pathology. We are also exploring the possibility of joint ventures with hospitals to expand our base. To augment this growth, we are looking at potential like minded investors or venture capitalist to participate in our growth plan. We are also exploring the opportunity of franchise route to reach the interiors of India in order to provide quality medical service", Dr. Vinay Goel, promoter director & chairman, Lifecare told Pharmabiz.
We definitely have plans to go across India, but in a phased manner. We would first like to consolidate our position in Mumbai and then enter Tier II cities. For this, we are tapping the franchisee route. To gain market share, we are open to acquisitions and are looking at good investment opportunities which will help to grow faster, he added.
The setting up of a diagnostic centre currently is just like any other business. It is not regulated, hence quality is not standardised. However, there are some positive developments seen in the diagnostic industry particularly in the pathology segment, wherein accreditation will become necessary in future. Even the diagnostic centres which have all services under one roof can go for accreditations like ISO or QCI which can assure quality service. But this is not an essential requirement, he said.
Lifecare Medical Centre is a division of Life Care Diagnostic & Research Center Pvt. Ltd. analyzing infectious diseases. The understanding is that the younger age-group is more susceptible. The multi-facility diagnostic centre offers services from pathology to radiology imaging, cardiac imaging, speciality clinics like dentistry, ENT and ophthalmology. But the fastest growing are pathology services followed by sonography. Due to increased awareness about preventive healthcare, health checkups are other major constituents to total revenue, he said.
According to Dr. Goel, the diagnostic market is presently fragmented and each locality is dominated by a local player. The consolidation of the industry has begun where bigger players are either acquiring or teaming up with smaller or mid sized players to bring in uniformity of services with standardisation of quality. Currently the trend is the move from standalone labs to offer a slew of diagnostic services under one roof. Exclusive pathology labs are now investing in radiology services and vice versa. New centres planned are larger as multi-speciality clinics, to cater to a population of 5-10 lakh. This is where the concept of franchisees is catching on.
The biggest challenge is to access skilled manpower. The capital intensive nature of business with long gestation period is another challenge for investors looking for quick returns, he said.