Metropolis Healthcare Plans Major Expansion to Reach 1,000 Towns Across India

The company plans to establish new laboratories across states such as Uttar Pradesh, Madhya Pradesh, Assam, Andhra Pradesh, Telangana, and Punjab.

Metropolis Healthcare, a leading diagnostics chain in India, has announced an ambitious plan to expand its footprint from 700 towns to 1,000 over the next 18 months.

This expansion strategy is backed by an investment of approximately INR 65 crore over the next two years, primarily aimed at strengthening its presence in tier 2 and tier 3 cities.

The company plans to establish new laboratories in states such as Uttar Pradesh, Madhya Pradesh, Assam, Andhra Pradesh, Telangana, and Punjab. Funds will be allocated toward facility upgrades and technological advancements to support growing demand.

Metropolis' Focus on B2C & Specialty Tests

Surendran Chemmenkotil, CEO of Metropolis Healthcare, emphasized the company’s target to drive double-digit volume growth by concentrating on the B2C segment and specialty diagnostic tests.

“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,” Chemmenkotil stated.

While he acknowledged that investment in new labs might initially impact profit margins, he is optimistic about the long-term growth this expansion will yield.

Metropolis has grown its operations significantly over the past two years, scaling from 300 towns to over 700 within eight quarters.

To further support its expansion, the company plans to establish around 10 new labs within the next six months, adding to the 75-77 labs launched in the past two and a half years.

Each new lab requires an investment of approximately INR 40 to 50 lakh and takes about two years to become profitable.

Strategic Emphasis on High-Demand Diagnostics

To enhance its service offerings, Metropolis is focusing on high-demand diagnostic categories, such as gastroenterology, neurology, oncology, and infectious diseases.

The company’s ‘True Health’ portfolio, which includes both wellness and illness-specific packages, has demonstrated a 23% year-on-year growth and plays a central role in Metropolis’s specialty test strategy.

The diagnostics chain believes this focus on specialty services and bundled health packages will not only improve patient outcomes but also boost its revenue.

Specialty tests are part of Metropolis’s broader goal to cater to the evolving healthcare needs of patients across India’s urban and semi-urban regions.

Inorganic Growth & Future Prospects

In addition to organic expansion, Metropolis is actively exploring inorganic growth opportunities. The company is in discussions with potential acquisition targets, aiming to acquire assets that complement its geographic presence or add to its testing capabilities.

According to the company, these acquisitions may include distressed assets with high growth potential that could benefit from Metropolis’s operational expertise.

Metropolis remains confident that its investments in lab expansion, digital capabilities, and specialty diagnostics will sustain growth and eventually improve revenue margins.

The company expects these margins, currently in the 25-26% range, to stabilize and increase in the coming quarters as the expansion progresses.

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