Over the last 30 years, Metropolis Healthcare has grown from being a single laboratory in Mumbai to a multi-national chain

with over 65 labs. Having taken both the organic and inorganic routes to growth, the company is eyeing a turnover of Rs. 350 crore this fiscal From being a one laboratory enterprise in Mumbai to a multinational chain of 65 laboratories (labs), Metropolis Healthcare Ltd. (Metropolis) has become one of Indias leading diagnostic centres, in a span of 30 years. Spearheading this growth is 31-year-old Ameera Shah, managing director and chief-executive officer of the Mumbai-based company. It has been Shahs customer-focussed approach that has seen the companys growth multiply in the past few years. I believe our organisations strength lies in the fact that we are very flexible, whether it comes to our mindsets, with our partners or in our methods. Our unique selling proposition has always been in providing high quality coupled with personalised services to our customers, says Shah. This quality is ensured by Metropolis systematic process followed in labs across the country. With three varieties of labs primary (100 200 tests), secondary (500 1,000 tests) and tertiary (the only lab in Mumbai that caters to all 4,500 tests); every biological sample that is collected goes through an automated process with three levels of authorisation from the respective doctor or lab technician, and a reliable cold chain management system for transportation. Our goal now is to focus on sustaining our growth and obtaining maximum efficiency from our processes, says Shah. Metropolis has received two rounds of funding from private equity firms ICICI Ventures in 2006 for Rs. 35 crore and last year when Warburg Pincus India Pvt. Ltd. (Warburg) invested US $ 85 million. Metropolis is a pioneer in the pathology industry in India and over a period of almost three decades, it has grown to be a formidable player in the field of clinical diagnostics with an excellent network. It is well-positioned to leverage growth opportunities in this sector, says Niten Malhan, managing director of Warburg. Much of this latest investment is being used for expanding Metropolis chain of labs and to aid inorganic growth in the future. At present, Metropolis has established a total of close to 65 labs across the globe. We are coming up with about 20 additional labs and about five labs through acquisitions or partnerships in India, UAE and Sri Lanka, and they will include state-of-the-art technologies. With an investment of Rs 50 lakh per lab, work on this is progressing on a monthly basis and weve already opened up in places like Indore, Mumbai and Hyderabad, adds Shah. The company is now targeting a turnover of Rs. 350 crore for this financial year from a turnover of Rs 250 crore in the fiscal ending March 2011 with a 40 per cent revenue growth rate, year-on-year. According to Warburg, Indias clinical diagnostics market is estimated at over Rs 10,000 crore and yet, it is surprising to note that the segment still remains largely fragmented. The biggest issue concerning Indias diagnostic market is that anyone can start a pathology lab. There are very poor regulations in place and a majority of them are

unorganised, rues Shah, who is also the secretary of the Indian Association of Pathology Laboratories and co-chairperson of Federation of Indian Chambers of Commerce and Industry (FICCI) Healthcare Committee. Though they bring competition, it is not the healthy sort there is price erosion since they would offer sub-standard tests at lower costs so we end up losing customers. The government needs to step in and I hope they will soon come out with the Clinical Establishment Act which will ensure quality standards, adds Shah. Building a brand When Shah joined Metropolis in 2001, her first role in the company was at the front desk dealing with customers. Back then, the company and its single lab was named after her father and founder, Dr. Sushil Shah and it had clocked a turnover of Rs. 9 crore. Having finished her education in finance and business management in the U.S., Shah worked in corporate firms, but soon realised working in large organisations was not up her alley. I wanted to be an entrepreneur and found the atmosphere in startups to be energising. I discussed it with my father and found that he had a great vision, says Shah. Dr. Shah founded the lab in 1981 when he realised that there were none in the market that offered specialised tests. We were among the first to offer thyroid and fertility tests that very year. He built a strong brand in 20 years. He set up labs with local partners in Jaipur, Hyderabad and Chennai, but not all worked out, she adds.

According to Warburg Pincus, Indias clinical diagnostics market is estimated at over Rs 10,000 crore.

Once Shah came on board, her strategy was two-pronged to focus on improving customers experience and to make the employees feel inclusive to the companys growth by giving them a voice. Various health campaigns like Healthy Heart were also initiated to improve awareness about the company. It also went on to receive accreditation from the Indian government and from the College of American Pathologists. With no strategic plans and no clear-cut divisions for the various business functions, funding mostly came from internal accruals. Shah was also looking at growing her organisation both in an organic and inorganic manner. Though we were known in Mumbai, in other cities we had to compete with already established players. For this, Shah decided to tie-up with local brands to form a partnership model. First to come onboard was Dr. P. Srinivasan of Lister Laboratory in 2003. It was definitely hard to convince them, but my fathers expertise helped. We didnt even go about it in a strategic manner, reveals Shah. Though Lister Laboratory was present only in Chennai, the tie-up provided a launch pad for Metropolis

in Tamil Nadu, where it now has five labs. The brand of Lister and its experienced team were certainly beneficial, she adds. From the years 2003 2008, Metropolis entered into 14 partnerships. By tying up with quality partners, Shah says the combined entities did not go through too many operational changes. There were some process changes like standardisation of equipments, adding more tests, documentation, accreditation and quality protocols. And as equity partners, Shah says these decisions are made by both parties. Surging ahead Metropolis went international when it set up its first lab through a joint venture in Sri Lanka in 2005. Soon after, labs opened up in UAE, South Africa, Nepal, Bangladesh, Mauritius and other parts of Sri Lanka. Every country came with its own set of dynamics that we needed to adapt to. For instance, in Sri Lanka, the diagnostic industry is interlinked with hospitals so we had to work around that and tie-up with hospitals as well, says Shah. While Sri Lanka is their largest international base, Shah considers South Africa as the fastest growing. These global labs now contribute about 25 per cent of its turnover. Shah soon plans to inaugurate facilities in countries like Kenya, Tanzania, Kuwait and Bahrain. This will also be augmented by increasing its roster of tests by 400 and adding 300 more employees to the existing 3,000 this year. It has also started offering dental services around March this year. We have a strong sales team that makes sure were active in advertising, in conferences and seminars and we also hold camps. Though the company is not immediately looking at being listed, Shah says it might plan an initial public offering in the next two years. On being quizzed about her personal achievements, Shah says it is interlinked with Metropolis. From one lab to a multinational chain of labs, I believe weve created a space for ourselves. More importantly, it has been a good ride for both the company and the employees, she says. And that we cannot refute.

Metropolis Healthcare Ltd. Founder: Dr. Sushil Shah City: Mumbai Industry: Medical diagnostic chain Presence: Over 65 labs present in various countries offering 4,500 tests with 500 collection centres

Target: Turnover of Rs 350 crore this fiscal year