 "The price of diagnostic tests, especially in the private sector, has been pinching the pockets of consumers")
Diagnostics major Neuberg Diagnostics plans to expand its international as well as domestic presence with an investment of Rs 150 crore, said a top company official.
"In the international arena the Rs 800 crore turnover Neuberg Diagnostics will expand in African countries (Kenya, Tanzania, Nigeria and Ghana) Middle East," G.S.K.Velu, Chairman and Managing Director told IANS.
The company also plans to have a presence in Sri Lanka, Nepal, Bangladesh and Germany.
"In the domestic market Neuberg Diagnostics is largely present in Southern and Western regions the growth focus will in Northern and Eastern regions," Velu added.
In the domestic market, the company will be setting up about 500 sample collection centres.
Currently, Neuberg Diagnostics has 109 labs in India and 15 labs overseas (USA, South Africa and Dubai).
Setting its foot in the US six months back, the lab's focus there will be on genomics.
The company has over 1,000 touch points across four countries.
Neuberg Diagnostics is also present in hospital chains like Cloud Nine, Kauvery Hospitals and others.
Speaking about the testing trends during the Covid-19 pandemic Velu said while the Covid-19 tests and home testing drove the business, other ailments were neglected.
He also said one has to see the post Covid situation. Apart from the Black Fungus, one has to see the other issues relating to the respiratory tracts as the lungs were affected by coronavirus.
With 17 approved labs for Covid testing the group has processed more than two million RT PCR Tests in India and South Africa.
Velu also said the Covid testing numbers are going down in India.
The three-and-half year old Neuberg Diagnostics grew its network through acquisitions-Anand Diagnostic Laboratory (Bangalore), Supratech Micropath (Ahmedabad), Ehrlich Laboratory (Chennai), Global Labs (South Africa), and Minerva Diagnostics (Dubai)- to be in the top four diagnostic labs in the country.
The organised sector in the Indian diagnostic segment accounts less than 10 per cent of the business and there is room for further consolidation, Velu said.
According to a research report by Edelweiss, the Indian domestic diagnostic industry is estimated at $9 billion (around Rs 675 billion) and is expected to grow at a compounded annual growth rate (CAGR) of about 10 per cent over the next 5 years.
Growth will be primarily driven by change in demographics, increase in lifestyle diseases, and higher income levels across all strata of society, rise in preventive testing, deeper penetrationAwith asset-light expansion, and spread of healthcare services and insurance.
The Indian diagnostic industry is highly fragmented and under-penetrated despite the presence of over one lakh labs.
According to Edelweiss, diagnostic chains command about 16 per cent market share. The four major players - Dr Lal Path Labs (DLPL), Metropolis Healthcare (METROHL), SRL Diagnostics (SRL) and Thyrocare Technologies - have a share of Aabout 6 per cent.
So, there is a huge opportunity for national players to consolidate and for organic expansion, Edelweiss said in its report.
--IANS
vj/in
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
