Metropolis Healthcare plans to expand reach to 1,000 towns in 18 months

Metropolis Healthcare, a leading diagnostics chain in India, has unveiled plans to expand its reach to 1,000 towns from a current 700 in the next 18 months.

 

The firm aims to strengthen its presence in tier 2 and tier 3 cities, supported by an investment of approximately Rs 65 crore over the next two years. New laboratories will be set up primarily in states like Uttar Pradesh, Madhya Pradesh, Assam, Andhra Pradesh, Telangana, and Punjab. Existing facilities will also be upgraded, and there will be investment in technology too.

 

“We aim to achieve double-digit volume growth by focusing on our B2C segment and specialty tests while expanding our network to 1,000 towns,” said Surendran Chemmenkotil, CEO, Metropolis Healthcare.

 

“To support this expansion, we are investing in new labs, which may initially impact margins but will drive long-term growth,” he said.

 

The company has already grown from operations in 300 towns to over 700 within the past eight quarters.

 

To support this expansion, Metropolis plans to open around 10 new labs in the next six months, adding to the 75-77 labs already established over the past two and a half years. Each new lab entails an investment of Rs 40 to 50 lakh and requires about two years to achieve margin positivity, according to the company.

 

To further fuel growth, Metropolis is placing focus on specialty tests and bundled health packages, including wellness and illness-specific packages under its ‘True Health’ portfolio, which has shown a 23 per cent year-on-year growth.

 

This focus on high-demand diagnostic categories such as gastroenterology, neurology, oncology, and infectious diseases is part of Metropolis’s strategy to enhance its service offerings and improve patient outcomes.

 

In addition to organic growth, Metropolis is exploring inorganic growth opportunities to complement its geographic and service expansion. The company is currently in discussions with potential acquisition targets, with a view to acquiring assets that align geographically or add new testing capabilities. This includes distressed yet high-potential assets that could benefit from Metropolis’s established operational strengths.

 

The diagnostics chain is confident that its strategic investment in lab expansion, digital capabilities, and specialty services will drive sustained growth and improve revenue margins, which are expected to stabilise and grow beyond the current 25-26 per cent range in the coming quarters.