Date:18/03/2005 URL: http://www.thehindubusinessline.com/2005/03/18/stories/2005031801061700.htm

Back Metropolis Health Services to set up pathlabs overseas

P.T. Jyothi Datta

Mumbai, March 17

WITH a domestic pathlab (pathology laboratory) network almost in place, Metropolis Health Services India Pvt Ltd expects to soon set foot in Sri Lanka (Colombo), East Africa (Nairobi) and West Asia (Dubai). And the company is talking to local and international financial investors to support these plans.

"We have already signed the memorandum of understanding with companies to set up pathlabs in these countries. We expect the labs to be operational between June and September," the Metropolis Chairman, Dr Sushil Shah, told Business Line. Further, he pointed out, that they were talking to private investors and finance companies to raise resources to support the expansion plans.

Elaborating on its international plans, the Metropolis Managing Director, Dr G.S.K. Velu, said that they sought to replicate the India-model in other global markets as well. The company is looking at a combined investment of Rs 25-odd crore towards Metropolis' international ventures. Part of these funds will also go towards supporting domestic plans for clinical research and environmental and industrial testing, he said.

The companies that Metropolis has tied up with in the three countries are present in the healthcare segment, he said. Metropolis will take majority equity in the partnerships, except in markets where Government laws don't allow picking up such stake, he said. The estimated Rs 45-crore Metropolis expects to clock Rs 100 crore in about 18 months, powered by the international ventures.

The overseas labs will bear the Metropolis name, Dr Velu said.

Colombo will be the referral lab for Sri Lanka, Nairobi for East Africa and Dubai for West Asia. The labs will take up routine and semi-specialised testing, while the super-speciality testing will have the support of the India base. "It works out to be more cost-effective, as these countries earlier sent their samples to Germany and France," Dr Shah said.

Meanwhile, on the domestic front, Metropolis is looking to establish two more labs in Hyderabad and Kolkata respectively. In these two centres, Metropolis looks to either ink a joint venture with an existing lab or acquire one outright, the company official said.

The Mumbai-based company has full-fledged labs currently in eight centres including Chennai, Kerala and Bangalore.