A little late in the game, last month, Odisha government joined the states that have chosen to offer free diagnostics to people. Every time states say ‘free diagnostics,’ path labs sense a big opportunity. Which is why Dr Lal, SRL and other organised large pathology labs bid for the tender, confident in their chance to win. After all, they have the ability to conduct thousands of tests, keep the prices low and maintain quality in labs.
Jack in the box
Surprise market winners in Indian states’ diagnostics race
The large, publicly-listed companies like Dr Lal and SRL lose out to new, forward-looking and eager diagnostic labs as Indian states start offering free diagnostics
State and central governments together are in the market to outsource diagnostics worth almost $1 billion
Wipro GE healthcare is leading as it has public-private partnerships (PPPs) with 15 states to provide radiology labs
Pathology lab major SRL, which has 3 PPPs, does not find PPPs profitable
Younger labs like Techmed Healthcare and Core Diagnostics are trying to expand their presence by tying up with Indian states