Jio redux: Reliance's entry into diagnostics industry may lower prices

With bigger players making inroads, share of organised sector to increase in a fragmented market

With Reliance Life Sciences (RLS) considering a foray into India’s $9.6-billion diagnostics testing industry, established players feel it could bring down prices, in turn, resulting in better volumes.

A Velumani, promoter, chairman, managing director and chief executive officer (CEO) of diagnostics player Thyrocare, felt RLS’ entry into the diagnostics space could follow a disruptive pricing model like their telecom venture of Reliance Jio. “If they bring down the prices, other laboratories would have to follow. This would definitely boost volumes,” said Velumani.

At present, around 95 per cent of the laboratories are working under capacity, with machines lying idle, claimed