NEW DELHI, Aug 2: Leading laboratory network SRL Diagnostics is planning to invest around Rs 100 crore to add 100 labs across the country by the end of 2016 as part of its expansion plan.
“We are looking at investing around Rs 100 crore to open 100 labs across the country as part of our growth plans and this does not include the cost of real estate,” SRL Diagnostics Managing Director Sanjeev K Chaudhry told PTI.
For setting up our labs “we usually rent the properties on a long-term lease and follow an asset light model,” he added.
SRL Diagnostics currently has 12 reference labs, four centres of excellence and close to 300 network laboratories with a footprint spanning over 6,400 collection points.
When asked how the company plans to fund the expansion, Chaudhry said: “It will be done through internal accruals. We generate our own cash flows for expansion and are self funded.”
The diagnostic chain is also adding to its international footprint. It is currently present in countries such as Sri Lanka, Nepal, Dubai and Congo.
“Apart from the expansion in India we will also expand our footprint internationally. We are the largest network in Sri Lanka and have the largest lab in Nepal and are present in Dubai for a long time,” Chaudhry said.
The company is also planning to create lab capacity in Africa, in countries such as Nigeria and Congo, among others, he added.
On being asked the business model the company plans to follow for future growth internationally, Chaudhry said: “We are going to expand lab capacity in Africa by following an asset light model.”
“At present, 97 per cent of our turnover is from India. While India remains focus of all our major expansion, we are looking (at) at least 10 per cent of our revenues coming from international markets as we go forward,” Chaudhry said.
Apart from lab presence overseas, SRL also has about 50 collection centres outside India.
When asked about the timeline for the company’s IPO, Chaudhry said: “We are IPO-ready since 2011 and can take a call anytime.”
At present, SRL Diagnostics offers over 3,500 types of tests and conducts more than 107,000 tests in a day, ranging from simple to high-end ones. (PTI)
Follow our WhatsApp channel