Diwan Chand to spend Rs 150 cr for radiology expansion

Diwan Chand Integral Health Services, part of the radiology player Diwan Chand Aggarwal (DCA) group, has embarked on an expansion plan of Rs 150 crore over the next 5 years, in its bid to create the first organised radiology chain in the country.

It would also be targetting the radiology and imaging business coming from the clinical trials undertaken by firms carrying out clinical research outsourcing (CRO) in a big way.

The Indian health imaging market is estimated to be roughly $351 million in 2004 and is expected to more than double to $762.77 million by 2009.

"The next five years would see us expanding radiology facilities across the National Capital Region of Noida, Greater Noida, Ghaziabad, Faridabad and Gurgaon. We are getting remote reporting works from states such as Uttaranchal and Rajasthan right now and this would gradually spread to other north Indian states," said Ajay Aggarwal, director, Diwan Chand Integral Health Services.

Discussions for teleradiology work, are being held with hospitals in Chandigarh and Srinagar, Aggarwal added on the occasion of DCA's foray into Noida with 'Women Wellness Diagnostic Facility".

When asked about the funding plan, he said, "More than half of this Rs 150 crore would come from internal accruals. We are talking to a few venture capital funds for placing a minority equity stake...but it's too early to comment on the specifics now."

DCA Group, consolidating its position in the radiology segment in North India, plans to go national thereafter. "We are planning a hub-and-spoke model, which would be in the form of having about four high-end radiology centres, five mid-range facilities in tie-up with hospitals and numerous entry-level radiology centres," said Aggarwal.

At present, DCHIS has a high-end radiology centre in Delhi, which provides facilities such as cardiac CT scan, PET scan and two other mid-range facilities.