Since it was founded in 1996, Indian diagnostics company Thyrocare has mostly enjoyed smooth sailing. By bringing down the cost for the most popular test for thyroid, it established itself as a serious player in the preventive healthcare space. This happened on the back of Thyrocare’s unique model—nationwide reach, but with just one lab. Samples collected throughout the length and breadth of the country were flown in to its central, automated lab for analysis.
It was a well thought out business plan—high economies of scale for one lab meant lower costs, higher margins, and, in turn, lower prices for customers.
India shuns preventive care, but Thyrocare’s betting it’s a goldmine
A number of large diagnostic lab chains are trying to grab a piece of India’s growing $4 billion diagnostics market. Can Thyrocare’s commitment to affordable preventive care help it weather the storm
Diagnostics major Thyrocare originally followed a contrarian approach of processing samples at one central lab
However, when it went public in 2016, it planned to set up 25 labs by March 2018. Yet only 8 have been established
This is on account of the company's growth slowing, primarily due to an increase in competition
Will Thyrocare be able to remain relevant in the face of competition?