Dr Lal Pathlabs is a diagnostic services company with a dominant presence in North India which accounts for around 65% of the company’s revenue. Dr Lal Pathlabs operates its own testing labs, while collection centres are run on a franchise model. The company got listed on NSE and BSE in December 2015. The National Reference Lab of the company is located at New Delhi. The portfolio of products of the company includes pathology, radiology and cardiology tests across both preventive and wellness categories. The customers of the company are individual patients and hospitals.
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The company was incorporated as ‘Dr. Lal PathLabs Private Limited’, a private limited company under the Companies Act, 1956, with a certificate of incorporation issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana (RoC) on February 14, 1995 at Delhi. Subsequently, the name of the company was changed to ‘Dr. Lal PathLabs Limited’ upon conversion of the company into a public limited company pursuant to a special resolution of the shareholders of the company dated August 7, 2015 and a fresh certificate of incorporation was issued by the RoC on August 19, 2015. There has been no change in the registered office of the company since incorporation of the company.
The company focuses on providing patients quality diagnostic and related healthcare tests and services. The company’s focus on the patient as a customer is a critical differentiator in the diagnostic and healthcare industries and, together with what its brand’s recognition for quality diagnostic services, results in individuals and healthcare providers choosing it as their diagnostic healthcare service provider. This is because (i) in India, patients generally choose their diagnostic healthcare service provider and (ii) patients and healthcare providers seek quality healthcare service providers due to what range in quality and reliability of diagnostic healthcare services in India.
With over 3,368 diagnostic and related healthcare tests and services offered, the company is capable of performing substantially all of the diagnostic healthcare tests and services currently prescribed by physicians in India. Its diagnostic and related healthcare tests and services include (i) routine clinical laboratory tests - such as blood chemistry analyses and blood cell counts; (ii) specialized testing services - such as histopathology analyses, genetic marker-based tests, viral and bacterial cultures and infectious disease tests; and (iii) preventive testing services - such as screenings for hypertension, heart disease and diabetes. It performs these tests and services in its clinical laboratories using sophisticated and computerized instruments.
The company has built a national, “hub and spoke” network that includes its National Reference Laboratory in New Delhi. The company’s “hub and spoke” model, whereby specimens are collected across multiple locations within a region for delivery to a predesignated clinical laboratory for centralized diagnostic testing, provides greater economies of scale and offers a scalable platform for the continued growth of its business. Its network is present across India, including large cities such as New Delhi, Mumbai, Bengaluru, Chennai, Hyderabad and Kolkata. The company’s centralized information technology platform fully integrates its large network through a common logistics and payments system and tracks its operations and internal performance metrics, thereby enabling it to improve the efficiencies of its business.
Business area of the company
The company is a provider of diagnostic and related healthcare tests and services in India. Through its integrated, nationwide network, the company offers patients and healthcare providers a broad range of diagnostic and related healthcare tests and services for use in core testing, patient diagnosis and the prevention, monitoring and treatment of disease and other health conditions. Its customers include individual patients, hospitals and other healthcare providers and corporate customers.
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