To invest Rs 305 crores in the new venture which will begin operations from August 2017.
Mankind Pharma, a well known pharma company, is foraying into the diagnostics space with its new venture Pathkind Diagnostics. In the coming four years, the company has a plan to invest Rs 305 crores in its new venture, which will start its operation from August 2017. As a part of the strategy, Pathkind would aim to reach out to the masses in tier II or III cities in India to provide easily accessible and high quality diagnostics services at affordable prices.
Reportedly, Mankind Pharma’s decision of launching the new diagnostics chain, Pathkind, is to focus on organic growth, contrasting with the game plans of its competitors. The company is planning to open 12 large labs, 20 rapid response labs and 150 collection centres in 12 months and will operate on a three-tier model. With a reference lab in Gurgaon, it will also have multiple collection centers in small towns and villages, which will be connected through the network of labs. Initially, the company will start its operations from Uttar Pradesh and move to Uttarakhand. Sanjeev Vashishta, who has earlier worked with SRL Diagnostics, would helm the new venture as its MD and CEO.
Commenting on the new venture, Vashishta said, “Diagnostics industry in India is grossly under-penetrated. Given the fact that diagnosis costs fraction in comparison to the cost of treatment, and about 20 per cent of the Indian population has ever got a blood test done due to inaccessibility/ ignorance, the volumes could be taken up significantly by just educating the prescribers (about new modalities) and the masses. There is a huge dearth of quality service providers in India, as per the demand for the healthcare/ diagnostics services. Today, people are becoming conscious about their health, which results in the need of more quality diagnostics centres. Venturing into diagnostics is also a financially prudent decision as diagnostics model is asset light, with low gestation period and a lucrative ROI.”