Metropolis, a major pathology lab chain in the country, is looking at acquiring companies in India and Africa, with a revenue size of up to $50 million.
The Rs 650 crore company, in which private equity investor Carlyle has a 30 per cent stake, would look at IPO or PE investments to fund such acquisitions, said Ameera Shah, CEO of the company.
“We are in talks with a few people for the acquisition of some assets, both in India and overseas, to help us increase our local presence,” she said. She added that the company would retain the brand that it acquires, keeping in mind its local brand recall. It would look at private equity or an initial public offering if it requires a large amount of expansion through acquisition.
It may be noted that the company has retained the brands that it has either partnered or acquired, including Chennai-based Lister and Guwahati-based Ekopath.
The company currently has around 1,000 collection centres and 130 labs worldwide. Of these, 900 centres and 110 labs are in India, while the rest are in United Arab Emirates, Sri Lanka, Mauritius, Ghana, Kenya and Zambia. However, Metropolis recently sold its business in South Africa, since the market there has matured and growth has been slower.
Plans are also to increase the number of collection centres to 1,500 during the next 12 months. The number of labs would be taken up to 160 during next fiscal year, she added.
“We have a turnover of around Rs 650 crore and we are expecting a growth of around 20-25 percent in the next few years,” she said.
The company is among the top three players in a market that have about 2,00,000 labs. The top four or five players enjoy a 10 percent share of the market, Shah added.
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Source: Business-Standard
