Neuberg Diagnostics, a leading diagnostics firm in India, aims to invest Rs 150 crore to increase its worldwide and local footprint, according to a top company executive.
"The Rs 800 crore turnover Neuberg Diagnostics will grow in African nations (Kenya, Tanzania, Nigeria, and Ghana) as well as the Middle East," stated G.S.K.Velu, Chairman and Managing Director.
In addition, the firm intends to establish a presence in Sri Lanka, Nepal, Bangladesh, and Germany.
"While Neuberg Diagnostics is primarily present in the Southern and Western sectors of the domestic market, the company's expansion will be concentrated in the Northern and Eastern regions," Velu noted.
The business plans to open 500 sample collecting centres in the domestic market. Neuberg Diagnostics now has 109 laboratories in India and 15 labs abroad (USA, South Africa and Dubai).
The lab, which first set foot in the United States six months ago, will concentrate on genetics. Across four countries, the company has over 1,000 touch points.
Neuberg Diagnostics is also found in hospital groups such as Cloud Nine and Kauvery Hospitals.
Neuberg Diagnostics, which has been in business for three and a half years, expanded its network through acquisitions of Anand Diagnostic Laboratory (Bangalore), Supratech Micropath (Ahmedabad), Ehrlich Laboratory (Chennai), Global Labs (South Africa), and Minerva Diagnostics (Dubai) to become one of the top four diagnostic labs in the country.
According to Velu, the organised sector in the Indian diagnostic segment accounts for less than 10% of the industry, and there is space for further consolidation.
According to an Edelweiss research report, the Indian domestic diagnostic business is valued at $9 billion (about Rs 675 billion) and is anticipated to expand at a compounded annual growth rate (CAGR) of around 10% over the next five years.
Changes in demography, an increase in lifestyle illnesses, and greater income levels across all socioeconomic groups will fuel growth, as will an increase in preventative testing, deeper penetrationAwith asset-light development, and the extension of healthcare services and insurance.
Despite the presence of over one lakh labs, the Indian diagnostic sector is largely fragmented and under-penetrated.
Diagnostic chains account for around 16% of the market, according to Edelweiss. Dr Lal Path Labs (DLPL), Metropolis Healthcare (METROHL), SRL Diagnostics (SRL), and Thyrocare Technologies are the four largest companies, with a combined market share of around 6%.
As a result, Edelweiss stated in its research that there is a significant chance for national players to consolidate and expand organically.