Hitech Diagnostic Centre, a leading diagnostics laboratory chain based in South India, plans to add 40 new centres in Tamil Nadu to consolidate its market leadership position in the State.
“Hitech Diagnostic Centre currently has 70 centres in Tamil Nadu and we are planning to launch 40 centres in the State in FY23,” Ameera Shah, Chairperson, Hitech Diagnostic Centre, told BusinessLine on Tuesday.
The diagnostic service-provider is one of the leading diagnostic players in South India with a strong presence in Chennai and other parts of Tamil Nadu. It has around 15 centres in other southern States such as Karnataka, Kerala, and Andhra Pradesh.
In October 2021, diagnostic major Metropolis Healthcare completed the acquisition of Hitech Diagnostic Centre along with its subsidiary Centralab Healthcare Services Private Ltd for a cash consideration of ₹636 crore. Already a market leader in the South, the acquisition enabled Metropolis to gain more market share, strengthen its leadership position in the South India market as well as increase its business-to-consumer (B2C) share of the business.
Currently, 75 per cent of Hitech Diagnostic’s business comes from the B2C segment, while the rest is from business-to-business (B2B). For Metropolis Healthcare, it is split equally.
Shah, who is also the promoter and MD of Metropolis Healthcare, said the addition of 40 centres will enable the diagnostic chain to increase its B2C share of business.
“The USP of Hitech Diagnostic has been its quick turnaround time and affordability. Now, we are adding few more benefits to consumers like increasing accessibility (with centre additions), expanding the outreach of Hitech’s popular preventive healthcare package ‘Nalam’, adding more advanced tests and automating many of the existing back-end as well as consumer-facing processes,” Shah said.
Metropolis’ southern expansion
As part of its overall expansion, Metropolis Healthcare announced that it will add 90 labs and 1,800 patient collection centres across the country in the next three years. Under the project, the diagnostic chain plans to introduce 20 labs and around 200-250 patient collection centres in the South.
“Our focus now is to get deeper into Tier-2 and 3 towns where we don’t have any labs,” Shah said.
She added that majority of the expansion will be organic and funding will be met through internal accruals. The Hindu BusinessLine