SRL Diagnostics has set out a multi-pronged strategy to increase its market share in Tamil Nadu. The leading diagnostic lab chain is planning to set up a 20,000 sq ft central reference laboratory in Chennai for advanced testing, besides expanding its network of retail collection touchpoints across the state.
“In Karnataka, we are among the top three diagnostic brands, we are also the number one player in Kerala. Despite serving the Tamil Nadu market over the last 20 years, we are not among the top three brands in the state. So, we want to focus and develop this market,” said Anand K, CEO, SRL Diagnostics.
On June 20, the diagnostic lab chain will open its state-of-the-art central reference laboratory in Chennai, which will offer the latest diagnostic services, including molecular biological testing, transplant immunology tests, and Human Neutrophil Antigen (HNA) typing, among other tests.
“Since Chennai is the transplant capital of India and a lot of nephrology activities happen here, we plan to set up a Centre of Excellence in transplant immunology and nephrology-related lab services in the city,” Anand said.
He added that SRL Diagnostics will partner with leading hospitals in Chennai to help them with testing services such as donor screening and testing for Cadaver Organ transplant requirements. “We are in talks with Oncologists from leading hospitals and based on their requirements, we will add more advanced tests in the Chennai lab.”
B2C expansion
On the B2C front, SRL Diagnostics currently has six labs and 60 collection touchpoints in Tamil Nadu, of which 30 are in Chennai. “We want to go up to 200 touchpoints in Tamil Nadu and 100 additional touchpoints in Chennai by the year-end,” Anand said.
A standalone subsidiary of Fortis Healthcare, SRL Diagnostics has more than 400 testing laboratories in India. In FY22, the company’s net revenue grew around 55 per cent to Rs 1,605 crore, as compared to Rs 1,035 crore in the previous year.
Anand attributed the revenue growth in the previous fiscal primarily to Covid-related business, along with a recovery in non-Covid related tests.
“For large diagnostic brands like us, almost 15-20 per cent of the revenue was from Covid, unlike smaller regional players, who had 50 per cent of revenue coming from Covid tests,” Anand said, adding, “But from March, this number has been coming down. We believe the Covid business will be just 3-5 per cent this year, while the balance will be from non-Covid tests.” There are already early signs of a recovery in non-Covid business, with a pick-up in inbound medical tourism, elective surgeries and transplants, he added.