CHENNAI: Metropolis Health Services (I) Ltd, which has a network of diagnostic laboratories in India and abroad, plans to invest Rs. 100 crore during the current year for its expansion programmes, according to G. S. K. Velu, Managing Director.

With 18 laboratories in India, three in Dubai and one in Sri Lanka, Mumbai-headquartered Metropolis plans to set up two laboratories in South Africa and one each in Thailand and Kuwait by the end of the second quarter of the year. Besides, it is in the process of finalising labs in Kolkata and Hyderabad, Mr. Velu told The Hindu.

Of the total investment, Rs. 85 crore would be used for either acquiring units or setting up green field projects within the country and abroad.

The balance amount would be used for clinical trials. The company proposed to raise Rs. 35 crore as private equity from ICICI and the balance through debts.

Metropolis would soon tap the capital market, he added.

Set up in 1981, Dr. Sushil Shah-owned Metropolis had seen its revenue surge from Rs. 8 crore in 2002 to Rs. 110 crore this year and expected to double it next year.

The idea of outsourced path-lab management had attracted diagnostics majors SRL Ranbaxy, Metropolis, Dr. Lal's, and even drug major Nicholas Piramal. These players account for eight per cent of the total size of the pathology laboratories and diagnostics test market in India, which was about Rs. 3,500 crore. In comparison, the U.S. market was about $50 billion.

Even if half a per cent were to be outsourced to Indian labs, the industry would boom, said Mr. Velu.

Metropolis had obtained accreditation from the NABL (National Accreditation Board for Laboratories) for six of its labs so far. Metropolis's Mumbai and Chennai centres were also accredited with the College of Amercian Pathologists (CAP).

Mr. Velu said its labs were divided into three levels — tertiary, secondary and primary. The Chennai, Mumbai and Pune labs came under tertiary level and were capable of undertaking 3,600 different investigations. The secondary level labs could perform 500 to 600 different investigations and under the primary level only 50 to 100 tests could be performed.

Mr. Velu said the company had so far taken over ten hospital labs under its control.

Metropolis, which was coming up with its new 30,000 sq ft facility in Chennai, would undertake all the 3,600 tests under one roof. It was also planning to set up a radiology division in the centre. It was talking to insurance companies for tie-ups with diagnostic centres for prevention and diagnostics. At present, insurance was provided for treatment in hospitals alone, he added.

On clinical trails, Mr. Velu said this was divided into two sections, SMO (side management organisation) and central lab testing for clinical trails.

Under SMO, clinical trails were conducted for pharma companies and contract research organisations (CRO). Metropolis had exclusive tie-ups with a few hospitals such as M. S. Ramaiah Hospital in Bangalore, and Ramachandra Medical College in Chennai.

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