Focus back on non-COVID portfolio; eyeing organic growth: Dr Lal PathLabs

Dr Lal PathLabs will be focusing on organic growth in various parts of the country, Om Manchanda, managing director, told CNBC-TV18.

“We go back to what we used to do during pre-COVID days, which is organic growth, build our network of the hub and spoke model and with the recent acquisition of Suburban Diagnostics we want to expand in the western part of India and that’s what we will continue,” he said.

He further said that with COVID-19 now receding, the focus has shifted back to the non-COVID portfolio. “Non-COVID business is sticky business, sustainable business and that’s what currently we are focusing on,” Manchanda said.

According to him, competition is much more visible now. “If you analyze data for last 10-15 years, diagnostic industry, prices have been coming down compared to inflation and that is going to happen in any case going forward as well. So, it’s not that the margins tend to drop; it’s just that scale benefits comes in, operating leverage in this business is very high. So price competitive intensity will continue to remain,” said Manchanda.

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