Super Religare Laboratories Ltd (SRL) and Life Care Services Pvt Ltd have started a jointventure recently to offer the Nepali public a world-class pathology lab. At a programme to mark this occasion, Dr Sanjeev K Chaudhry , the Chief Executive Officer of SRL, spoke to Nubiz about the venture and its future in Nepal. Excerpts from the interview:
Â
Could you brief us on SRL?
Super Religare Laboratories (SRL) is India’s largest and one of the world’s fastest growing health care diagnostics company. SRL was the first pathology lab system in India to get quality accreditations from the National Accreditation Board for Testing and Calibration Laboratories (NABL), Government of India and the College of American Pathologists (CAP), USA. SRL is today approached by leading hospitals of the UK, the Middle East, the SAARC region and South East Asia for their testing needs. A large part of the decision that a doctor makes in terms of what treatment to do or how to heal a patient is based on the output of an accurate diagnosis. We are the market leaders not just in terms of geographic capability or the size of an operation but also in terms of scientific and medical capability. SRL is the only Pathology Lab Network from India to have five reference labs and over 170 labs, with a footprint spanning over 1500 collection centres. Since its inception in 1996, it has conducted over 50 million tests and today its operations have scaled up to a level where 10 million people every year repose their trust in the testing facilities of SRL.
Super Religare Laboratories (SRL) is India’s largest and one of the world’s fastest growing health care diagnostics company. SRL was the first pathology lab system in India to get quality accreditations from the National Accreditation Board for Testing and Calibration Laboratories (NABL), Government of India and the College of American Pathologists (CAP), USA. SRL is today approached by leading hospitals of the UK, the Middle East, the SAARC region and South East Asia for their testing needs. A large part of the decision that a doctor makes in terms of what treatment to do or how to heal a patient is based on the output of an accurate diagnosis. We are the market leaders not just in terms of geographic capability or the size of an operation but also in terms of scientific and medical capability. SRL is the only Pathology Lab Network from India to have five reference labs and over 170 labs, with a footprint spanning over 1500 collection centres. Since its inception in 1996, it has conducted over 50 million tests and today its operations have scaled up to a level where 10 million people every year repose their trust in the testing facilities of SRL.
What kind of research did you carry out before approving this particular venture?
Well, the laboratory of this nature is commercially viable if it is processing about 100 samples a day. We realised that we can price the services at this laboratory very high and make a lot of profit due to our monopoly position. However, it is not part of the “We have an edge over other laboratories†New Business Age | October 2010 25 Visiting Business People Nubiz SRL philosophy to do so. We believe in doing things correctly and at a fair price. So we have priced it very competitively in line with the market reality in Nepal. Our strategy is to seek profit through volume expansion. Since this lab is located in Kathmandu, we also had to think about the people residing outside the valley. So we have also set up sample collection centres outside the Kathmandu valley. There are already eight collection centres linked to this facility that includes Pokhara, Dharan, Janakpur, Bhairahawa, Nepalgunj and Bharatpur. Over a period of time, we plan to have a 100 collection centres across Nepal.
Â
Well, the laboratory of this nature is commercially viable if it is processing about 100 samples a day. We realised that we can price the services at this laboratory very high and make a lot of profit due to our monopoly position. However, it is not part of the “We have an edge over other laboratories†New Business Age | October 2010 25 Visiting Business People Nubiz SRL philosophy to do so. We believe in doing things correctly and at a fair price. So we have priced it very competitively in line with the market reality in Nepal. Our strategy is to seek profit through volume expansion. Since this lab is located in Kathmandu, we also had to think about the people residing outside the valley. So we have also set up sample collection centres outside the Kathmandu valley. There are already eight collection centres linked to this facility that includes Pokhara, Dharan, Janakpur, Bhairahawa, Nepalgunj and Bharatpur. Over a period of time, we plan to have a 100 collection centres across Nepal.
Â
Â
Tell us about your foray into the Nepali market.
Being a neighbour of this country and being very closely associated culturally, socially and economically, we get a lot of people from Nepal who frequent India for treatment. There are many others who only send their samples. We perform tests on nearly about 80,000 samples and a few hundred every day from Nepal itself. So, we were convinced that coming to Nepal with a modern laboratory was always a viable proposition. This will serve not only our existing clientele here but also a large number of people who will have easy access to our laboratory here.
Â
Being a neighbour of this country and being very closely associated culturally, socially and economically, we get a lot of people from Nepal who frequent India for treatment. There are many others who only send their samples. We perform tests on nearly about 80,000 samples and a few hundred every day from Nepal itself. So, we were convinced that coming to Nepal with a modern laboratory was always a viable proposition. This will serve not only our existing clientele here but also a large number of people who will have easy access to our laboratory here.
Â
What is the kind of investment that you have put in your operations in Nepal?
Super Religare Reference Laboratories (Nepal) Pvt Ltd is a joint venture between SLR, India and Life Care services Pvt Ltd, Nepal, which is part of a leading corporate group here led by Mr Ravi Bhakta Shrestha. We have already invested about US$ 1 million in this facility. With time, the facility will expand with more investment in its infrastructure. From the perspective of the health care industry, you need to understand that this facility is the part of a very large network. This network is connected electronically to a large number of reference laboratories across the world. For now, while it may be only a US$ 1 million investment, there is a whole SRL investment of several hundred million dollars in India and elsewhere which will be supporting the local facility here.
Super Religare Reference Laboratories (Nepal) Pvt Ltd is a joint venture between SLR, India and Life Care services Pvt Ltd, Nepal, which is part of a leading corporate group here led by Mr Ravi Bhakta Shrestha. We have already invested about US$ 1 million in this facility. With time, the facility will expand with more investment in its infrastructure. From the perspective of the health care industry, you need to understand that this facility is the part of a very large network. This network is connected electronically to a large number of reference laboratories across the world. For now, while it may be only a US$ 1 million investment, there is a whole SRL investment of several hundred million dollars in India and elsewhere which will be supporting the local facility here.
Â
How big are your operations and reach in global terms?
Besides India and Nepal, we have a presence in Dubai at the Dubai Health Care City, in Mauritius, and in a couple of African countries, too. Very soon, we will be expanding to Europe and the United States as well.
Â
Besides India and Nepal, we have a presence in Dubai at the Dubai Health Care City, in Mauritius, and in a couple of African countries, too. Very soon, we will be expanding to Europe and the United States as well.
Â
What is the kind of expectation for growth here in Nepal that you have in mind, in the foreseeable future?
At the moment, the parent company is growing at 30 to 40 per cent annually. We expect to register the same growth rate in Nepal or perhaps, even a higher rate. It would mean performing more tests and opening more collection centres. You can evaluate these things in multiple ways. We’ll look at establishing more laboratories in Kathmandu as well as other parts of Nepal once the need arises.
At the moment, the parent company is growing at 30 to 40 per cent annually. We expect to register the same growth rate in Nepal or perhaps, even a higher rate. It would mean performing more tests and opening more collection centres. You can evaluate these things in multiple ways. We’ll look at establishing more laboratories in Kathmandu as well as other parts of Nepal once the need arises.
Â
Tell us about the target consumer base that you keep in mind while focusing at a market like Nepal’s.
Going by experience, we divide the population of any country into quintiles which consist of 20 per cent each. We find it relevant to directly target the top three quintiles which cover the 60 per cent population. This number definitely has the ability to pay for the treatment and it can afford to go for the best treatment. The bottom 40 per cent usually faces the problem of affordability and therefore they go to the state-run hospitals. To a patient, it may be free-of-cost but to the state it does cost money. The state-run hospitals do the best they can at their end. Anything that goes beyond their capacity is sent to a laboratory like ours which again is a source of revenue for our business.
Â
Going by experience, we divide the population of any country into quintiles which consist of 20 per cent each. We find it relevant to directly target the top three quintiles which cover the 60 per cent population. This number definitely has the ability to pay for the treatment and it can afford to go for the best treatment. The bottom 40 per cent usually faces the problem of affordability and therefore they go to the state-run hospitals. To a patient, it may be free-of-cost but to the state it does cost money. The state-run hospitals do the best they can at their end. Anything that goes beyond their capacity is sent to a laboratory like ours which again is a source of revenue for our business.
Â
You said that you enjoy a virtual monopoly. Does that mean you do not have any competition whatsoever?
We do have competition. When I say we enjoy a monopoly, it is in terms of the quality of our laboratory. Any test can be performed in a number of ways, including the use of primitive techniques like studying a slide under the microscope. In fact, a lot of laboratories can perform the tests that we do. The difference is in the processes for collection, testing, and reporting because our servers preserve the data on a long term basis. We believe in providing 100 per cent guaranteed service. SRL consistently follows the best of national and international quality protocols, thereby ensuring the accuracy of every test report. The same quality and international standard protocols will also be ensured in our Kathmandu lab. This is where we have an edge and it sets us apart from other laboratories.
We do have competition. When I say we enjoy a monopoly, it is in terms of the quality of our laboratory. Any test can be performed in a number of ways, including the use of primitive techniques like studying a slide under the microscope. In fact, a lot of laboratories can perform the tests that we do. The difference is in the processes for collection, testing, and reporting because our servers preserve the data on a long term basis. We believe in providing 100 per cent guaranteed service. SRL consistently follows the best of national and international quality protocols, thereby ensuring the accuracy of every test report. The same quality and international standard protocols will also be ensured in our Kathmandu lab. This is where we have an edge and it sets us apart from other laboratories.
Â
How cheaper is it going to be for the people who have been sending their samples thus far to your laboratory in India?
For them, it will be at least 20 per cent cheaper as there won’t be a transportation cost. More importantly, it is the same result with the same efficiency and accuracy, only at a faster rate.
For them, it will be at least 20 per cent cheaper as there won’t be a transportation cost. More importantly, it is the same result with the same efficiency and accuracy, only at a faster rate.
Â
Â
