Aster enters healthcare diagnostics business in India with Aster Laboratories

• Two laboratories set to open in Bangalore by Q2 FY’20 and another 19 to be established in South India. Expected investment of Rs. 40 crores over the next two years.
• The company will also look at strategic acquisitions to expand this business and additional capital will be deployed accordingly.

Bangalores, June 02, 2019: Aster DM healthcare is entering into a new vertical in the healthcare sector in India by stepping into healthcare diagnostic services business as Aster Laboratories, with 2 laboratories to be operational in Bangalore from Q2 FY’20. A centralized pathology lab processing facility to be set-up in Bangalore, along with a satellite lab in the initial stages and by the end of the year the target is to have 1 reference lab, 8 satellite labs and €3 patient experience centres – mainly in the states of Karnataka and Kerala.

Aster Laboratories will aim to build an efficient clinical testing network through a reference laboratory and hub and spoke model to ensure specimen integrity and quick turnaround times from the satellite laboratory and patient experience centres. By FY’21, the hub and spoke model will be extended to other South Indian states where Aster already has a presence through local hospitals- Andhra Pradesh, Telangana, Tamil Nadu and Maharashtra. Total investment of Rs. 40 crores expected over the next two years. The company will also look at strategic acquisitions to expand this business and additional capital will be deployed accordingly.

“Our focus is on bringing quality health care closer to the people. We have been doing this through our Hospitals, Clinics, Labs and Pharmacies in GCC. We would like to look into these areas also in India which has become a major market for us with 12 operational

hospitals. With this in mind, we are now expanding the range of services with Aster Labs to help meet some of the service gaps in the local healthcare market. This B to C initiative will fall into place with our wish to bring our services closer to our customers,” said Dr. Azad Moopen, Founder Chairman and Managing Director of Aster DM Healthcare.

He also added, “Instead of the traditional ‘Just Screening’ only model, we shall also be focusing on ‘Preventive Healthcare’ extending the service to the homes of our customers through proper logistic arrangements. With only 5% organized businesses in the area of diagnostics in India, we think there is significant opportunity for consolidation.”

India has around 100,000 diagnostic laboratories with an estimated Rs 60,000 crore plus revenues generated annually, which includes pathology laboratories and radiology centres. However, organised players hold only 30 per cent of the market share.

Aster DM Healthcare, which operates 12 hospitals and 8 clinics in India, as a part of a network of 24 hospitals, 114 clinics and 219 pharmacies globally, clocked revenues of Rs 7,963 crore during FY19, a growth of 18 per cent over the previous year. Profit after Tax for the year grew by 140 per cent, from Rs 139 crore during the last year to Rs 335 crore.

Corporate Comm India(CCI Newswire)