Dr Lal PathLabs, India’s leading diagnostic chain, is planning a large acquisition to strengthen its presence in South India. The company is considering deals worth Rs 3,000-4,000 crore, according to its CFO, Ved Prakash Goel. With Rs 1,000 crore in cash reserves, Dr Lal PathLabs is ready to expand using both its balance sheet and equity.
The company is targeting businesses with Rs 300-400 crore in revenue that meet high standards in quality and governance. After successfully acquiring Suburban Diagnostics in 2021, Dr Lal PathLabs now has the experience and management capacity for further growth, said CEO Shankha Banerjee.
Currently, only 6% of the company’s Rs 2,227 crore revenue comes from the South, with most of its earnings coming from North India. Dr Lal is actively looking for new opportunities to expand its reach in the South.
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