Dr Lals PathLabsFranchise Model for a Collection Centre.

The Indian Healthcare Industry

•An ~ USD 100 billion (Rs. 6,00,000 crore) industry - 2015

•Diagnostics Segment ~ USD 5 billion (Rs. 30,000 cr.) - 2015

•Overall Wellness Sector ~ Rs. 49,000 cr. currently – Double by 2015

The Indian Healthcare Industry• Aspirations: The changing lifestyle syndrome

• Affordability: Rising income

• Awareness: Power of Media; Digitalization; Connected Consumer; Education

• Accessibility: Retail network & penetration by services

• Allied:

– Indian Healthcare Industry – 5.2% GDP in India today

– GDP grow further - Government plans USD 46 billion (Rs. 2,76,800 crore) in next 5 years

– Medical Tourism – Medical Bill in India is 1/10th its global counterpart

Introduction• Late Dr. (Major) S.K. Lal, a pioneer in the field of

pathology who had been trained in the army and later at the Cook County Hospital, Chicago, USA, laid the foundation stone of Dr Lal PathLabs in 1949.

• Blessed with immense knowledge and expertise in this field, Dr. S. K. Lal established an organization that was destined to become the first pathology laboratory of repute in Delhi and Northern India. Today, Dr Lal PathLabs is recognized as a centre of innovation and a premier clinical pathology laboratory.

Introduction•Established in 1949, Dr Lal PathLabs today is

the largest and most respected diagnostic service provider in the country. It has a proven track record of over six decades for strict adherence to international standards and benchmarks.

•Dr Lal PathLabs offers widest test menu and has a pan India presence in all important cities and towns of India, in the form of state-of-the-art laboratories and patient service centres. Its employee strength of over 3000 people, serves over 10 million customers every year.

Introduction

• Over 60 Years of Nurturing Trust (1949 - 2013)

• Since 1949, Dr Lal PathLabs has become synonymous with trust and reliance in the field of pathology services. Treasuring this trust, Dr Lal PathLabs has emerged as one of the highest accredited laboratories in the country, delighting over 10 million customers per year. Banking on state-of-the-art technology and highly skilled personnel, Dr Lal PathLabs shall continue to provide supreme quality of service and earn the trust of millions of people in the times to come.

Dr Lal PathLabs – The Advantage ofpartnering with the Leader

Leading Diagnostic Chain

– Over 125 Labs; Over 2000 centers

– Over 10 million (1 crore) customers

– Over 60 Years of Expertise – We know India better

• Expertise - Hub & Spoke Model

• 16 hours Customer Care Support – National Helpline – 3988-5050

Quality, Service, Innovation is a way of life

Home Collection know-how and Infrastructure

• Highest Accreditations in the Industry – CAP/NABL/ISO

• Core Competency in the sector:

Pathology > Cardiology > Radiology + Imaging > Clinical Trials

• External Quality Assurance Programs – CAP/AIIMS/ CDC Atlanta, Georgia (USA)

Dr Lal PathLabs – Join hands with the Leader

The Narrow Opportunity To increase Footprint125 Labs ------ 200 Labs

2000 Centers ----- 3000 Centers

Tier II cities/ Tier III cities/ Other parts

Open for various formats – partnership arrangements

PAN INDIA Presence

Dr Lal PathLabs – Let’s Talk•Dr Lal PathLabs Advantage

• 60 years of expertise & Trust – Diagnostic Sector

• Most accredited Lab network

• Network – Reach – Customer base

• Expertise of Hub/Spoke Business Model

• Technology Leadership

• Marketing/Sales/Ops Support

• Customer Care – 16 hours Back-end Support

• Most accurate testing

What we look for in our potential Franchisee partners?

• Entrepreneurship

• Credibility

• Passion to build business

• Capital

• Local Expertise

Requirement for Starting CC (Collection Centre)

•Security deposits Rs.50,000/-

•Collection centre Space (300-400 sq ft) attached with Toilet

•Phlebotomy Chair

•Needle Destroyer

•Centrifuge Machine

•Appointment of 1 helper (Rs. 5000) & 2 technician (Rs. 8000) for taking the sample

•Computer/Printer

•Internet /Phone connection

•Branding Space outside as well as inside the premises - LPL will provide the creative/art work only

•Space for the storage of consumables-It would be provided from LPL

•Refrigerator

•Dust bins

•Air Conditioner

LPL will provide below mentioned support

•Sales support by meeting with doctors through our sales team ,to create the customers

•Marketing support to provide the art works and creative for Branding or any promotional activity

•Consumables (Vacutainers ,Needles etc.)

•Logistic Support- To send the samples to our nearest lab for testing

•Reports would be available on line

•Complete test menu (Routine to Specialized)

•Discount 25-30 % on MRP and along with that Special rates with variable discounts (up to 80 %) for commonly prescribed test like Thyroid etc.

•LPL will raise the invoice on weekly basis ,need to clear on weekly basis

•There is also a provision of TDS ,we will deduct 10% TDS on the CC commission as per law and provide the TDS certificates at year end.

FinancialsOperating Expenses Amount Rs.

Rent (15000 X 12) 1,80,000

Salary {(6000 X 2 + 3000 X 1) X 12} 1,80,000

Electricity (3500 X 12) 42,000

Internet & Phone (2000 X 12) 24,000

Conveyance (60 X 2 X 25 X 12) 36,000

Miscellaneous 24,000

Total 4,86,000

Return on InvestmentInvestment Amount

Franchise fees 50,000

Computer & Printer 40,000

Internet & Phone 2,000

Air-Conditioning 30,000

Refrigerator 10,000

Phlebotomy Chair 25,000

Needle Destroyer 3,000

Centrifuge Machine 13,000

Interiors 1,30,000

Total 3,03,000

Return on Investment• Investment: Rs. 3,03,000

• Revenue: (20 samples x 25 x Rs.500/ sample x 12) = Rs. 30,00,000 p.a

• Margin: (25% commission): Rs. 7,50,000 p.a

• Running Cost: Rs. 4,86,000 p.a

• Net Margin: Rs. 2,64,000 p.a

• RoI: ~ 86% PBP: ~1 year 2 months

News HighlightsDr Lal PathLabs wins Franchise India “HALL OF FAME” award – Dec 2011

Dr Lal PathLabs wins the Milagrow “Brand Innovator Award - 2010” in the HealthCare Sector. Dr Lal PathLabs wins 2010 Franchise India Excellence award for "Best Customer Service“ Dr Lal PathLabs receives Franchise Plus-2010 award in Healthcare category – “ Franchisor of the Year 2010

Agreement

Franchisee Speak

• Mr. Sanjay Gupta - Collection Centre, Yusuf Sarai

It all started 7 years ago. As a business man with a small 300 sq. feet shop, I was presented with this business opportunity of opening a Dr Lal PathLabs Collection Centre. Initially I was hesitant as I had no clue of medical words but Dr Lal PathLabs staff was very cooperative. They trained and guided me through out this journey. Today, as I look back at the past 7 years, I can surely say with pride that not only have I succeeded as a business man but have gained a huge amount from the society. It gives me a sense of pride when my colony members call me "Dr. Gupta."

Franchisee Speak• Mr. Pravin Grover - Collection Centre, LUDHIANA

7 years ago, I was successfully running a chemist shop in Ludhiana. I chanced upon an opportunity to open a franchisee collection centre of Dr Lal pathLabs and today I have two more collection centers of LPL in Ludhiana which I am managing with along with my 2 younger brothers. As I look back in time I feel that it was only GOD who gave me an opportunity to involve my complete family in this highly respectable and humane profession. Being associated with Dr Lal PathLabs, I today feel like a "Complete person".

Any Questions ??

Thank You