Neuberg Diagnostics says will cross Rs 1,000 cr revenue milestone in FY22

Diagnostics company Neuberg Diagnostics will be crossing the Rs 1,000 crore revenue milestone by the end of FY22, said a top company official. The company is planning to set up 10 more labs in the northern and eastern parts of the country for deeper penetration, said GSK Velu, Chairman & Managing Director at Neuberg Diagnostics.

It will also be setting up technology incubation centers in the USA and Europe to access the latest technologies and make developing countries ready for precision diagnostics in the evolving personalised medicine arena. The company had closed FY21 with a revenue of around Rs 800 crore.

“We are also planning to open diagnostics facilities in Kenya, Tanzania, Nigeria, and Ghana. In West Asia, we are looking to set up labs in a few middle eastern countries with the new lab we are commissioning acting as a hub at Dubai,” said Velu. It has earmarked Rs 100 crore for expansion plans for FY22.

The Chennai-headquartered company has seen testing load grow 4-5-fold since the pandemic hit for which it has hired more than 1,500 people across portfolios to ensure smooth functioning. Neuberg now employs more than 4,000 employees with over 120 laboratories and over 1,200 collection centres with direct lab presence in four countries namely India, the US, South Africa and UAE.

In March last year, the company was testing from four ICMR approved labs in India. It added 14 more labs in FY21 and is currently doing RT-PCR tests from 18 labs across India, the USA, and South Africa. 

“Overall, the diagnostics industry is seeing a robust growth trend even though Covid test rates have come down substantially due to government price controls,” said Velu.

The company which has grown mostly through inorganic expansion will continue to scout for more such deals. “We are continuously looking for M&A opportunities with like-minded labs and would consider the same if we see shared values and strategic fit,” said Velu.

Neuberg was launched in 2017 after a spree of acquisitions such as Anand Diagnostic Laboratory in Bengaluru, Supratech Micropath in Ahmedabad, Ehrlich Laboratory in Chennai, Global Labs in South Africa, and Minerva Diagnostics in Dubai.