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SRL Diagnostics plans to open labs in African countries

Mumbai:  SRL Diagnostics is planning to expand its network in Kenya, Tanzania, Mozambique and Uganda by opening labs and collection centres.

“We have 260 laboratories across India, Nepal, Sri Lanka and Dubai. The company sees significant opportunity in Africa. Now we plan to expand our network in Kenya, Tanzania, Mozambique and Uganda,” SRL Diagnostics Chief Executive Officer Sanjeev Vashishta told PTI.

SRL Diagnostics already has presence in Democratic Republic of Congo and Nigeria at present.

The company will tie up with a local partner to set up reference laboratories and run for 5-10 years in Kenya, Tanzania, Mozambique and Uganda.

It will get a percent of topline or sweat equity as profit sharing, Vashishta said.

Currently, patient samples are being outsourced to SRL’s Reference Laboratories in India from many countries like Bangladesh, Hong Kong, Malaysia, Maldives, Sri Lanka, Afghanistan, UAE, Kuwait, Bahrain, Oman, Qatar, Kenya, Tanzania, Ghana, Sudan, Ethiopia, Uzbekistan etc.

“We are growing at a compound annual growth rate (CAGR) of 18 per cent, even as the earnings before interest, taxes, depreciation and amortisation (EBITDA) grew at over 35 per cent in the last five years period.

“Our revenue likely to touch Rs 850 crore in FY 15 and we may cross Rs 1,000 crore in FY 16,” Vashishta said.

SRL has about 40 per cent share of the organised diagnostic market in India.

India’s medical diagnostics market size is worth about USD 3.5 billion (Rs 20,000 crore), of which 10 per cent is in the organized sector.

The company is exploring with various State governments to replicate the public-private partnership (PPP) model under which it already operates 24×7 medical diagnostic labs.

The company will continue to invest Rs 40-50 crore in high research work in the areas of oncology, Vashishta said, adding that the future investment will be funded through internal accruals as the company generates adequate profits.

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