Connect with us

Headlines of The Day

Neuberg Diagnostics to invest ₹500 crore for business expansion

Chennai-based Neuberg Diagnostics is planning to invest around ₹500 crore towards business expansion as it looks to venture into the northern and eastern regions in India and overseas markets through organic and inorganic routes.

“We are looking to invest about ₹400-500 crore during the current fiscal and in the beginning of the next financial year. This will be towards our business expansion as well as investment in technology,” GSK Velu, Chairman and Managing Director, Neuberg Diagnostics, told BusinessLine.

M&A possibilities
“Though we have presence across the country, we are dominant in five-six States in the southern and western markets. Now, we are moving into north and east as well,” he added.

One of the top four path lab chains of Indian origin, Neuberg Diagnostics, has more than 150 labs and over 2,000 collection centers all over India and in the US, UAE and South Africa. Currently, 80 percent of its lab network in India is located in the south and west regions, contributing over 90 percent of the revenue.

“North and east contribute less than 5 per cent to our overall revenue. We are planning to scale it up to 10 per cent and grow it further over the years,” Velu said. He added that the company is also looking at M&A possibilities in these regions and is currently evaluating 10-15 opportunities across the country.

International presence
Neuberg has made several acquisitions in the past including Bengaluru-based Anand Diagnostics, Ahmedabad-based Supratech Micropath, Pune-based A.G Diagnostics, Chennai-based Ehrlich Lab and few others in India and abroad. In the overseas market, the company is looking to expand its presence in other parts of the Middle East and Africa. “Currently, international business contributes to about 10 per cent of our revenues, we expect this to go upto 20 per cent,” Velu said.

“Tech-enabled home service is another priority. We are investing a lot of money, effort and time on digital health and digital diagnostics,” Velu said. The Hindu BusinessLine

Copyright © 2023 Medical Buyer

error: Content is protected !!