Idea
Thyrocare is a diagnostics laboratory that specialises in testing for lifestyle diseases such as thyroid malfunction at cut-rate prices.
Thyrocare, founded 12 years ago by A Velumani, 50, conducts about 30 lakh tests a year, which doctors say is a sign that lifestyle diseases such as diabetes, obesity and depression, are on the rise. These conditions all create imbalances in the hormones produced by the gland, which in turn controls how quickly the body burns energy and makes proteins.
Business In order to offer a cut-rate service, Thyrocare focuses entirely on testing, and outsources the job of collecting samples to franchisees. So it has one central laboratory in Navi Mumbai, where all the tests are conducted, while 600-odd centres all over the country collect samples from patients and have them sent to this lab.
Thyrocare provides these centres with branding support, medical literature and the all-important vials for collecting samples. The franchisees are then responsible for recruiting people to collect samples and delivering them to the nearest airport.
Outsourcing the collection and some tests that it does not perform, helps the company keep costs down because it does not have to maintain a huge team or buy equipment for tests that do not come its way very often.
This single-minded focus on costs is visible everywhere. The building's facades are made of glass so that natural light can illuminate the inside, and the company can save on electricity. The company uses the bulk of cash it generates to buy equipment and service it. It now has ten imported machines, two of which cost Rs 1.2 crore each.
Obstacles Conducting so many tests has its downside. Of 1.24 lakh tests Thyrocare conducts every month, it gets about 400 to 600 complaints about reports from doctors and hospitals, the company's largest clients. That might sound a lot, but as a proportion of the total, it is actually just half a per cent. But given the kind of prices it charges, it is perhaps a wonder that it has managed to keep the problems to this level.
Success Today, the lab employs 150 people and plans to diversify, including into pregnancy testing. It has also designed a health check-up package and is approaching companies to sign on. Mumbai was a pretty daunting place to start off, says Velumani, but a Thyrocare story is possible only in this city.