Dr Lal PathLabs says heavy discounts on diagnostics are easing
In an interview with CNBC-TV18, Om Manchanda, MD of Dr Lal PathLabs, said that the feedback from his teams indicates a decreasing trend in discounting from competitors, adding that new entrants have led to heavy discounting in the industry.
Dr Lal PathLabs, a pathology service provider, aims to leverage market expansion in Tier-2 and 3 cities and strengthen its presence in western markets to drive growth as discounting from competition has been reducing.
In an interview with CNBC-TV18, Om Manchanda, MD of Dr Lal PathLabs, said that the feedback from his teams indicates a downward trend in discounting from competitors, adding that new entrants have led to heavy discounting in the industry.
He said, “Pricing in this industry is not national. It varies from city to city and region to region. But the feedback that I am getting from my teams is that the kind of discounting which was happening earlier is much less. So, effectively there is an increase in prices.”
Talking about price strategies, Manchanda said that Dr Lal PathLabs last hiked its prices in February, but only in select portfolios.
When asked about market expansion, he emphasised that a large part of the company's growth trajectory will be driven by Tier-2 and 3 towns. Dr Lal PathLabs aims to establish a strong presence in these areas, catering to the growing demand for reliable diagnostic services and building long-term customer relationships.
Dr Lal PathLabs is strategically aiming to increase its market share in the western region of India. This move reflects the company's ambition to leverage its expertise and reputation to expand. “This process is very gradual in nature. So, I would say that over a period of next 3-5 years, we are confident that we will be able to increase our share in western markets,” Manchanda said.
For more details, watch the accompanying video.
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