How this SECRET

Business SAVED Millions

of Lives in India!
Thyrocare Technologies revolutionized thyroid testing, reducing costs
by 80% and becoming a competitor to larger companies like Dr Lal and
SRL.

Thyrocare Technologies brought down the cost of thyroid test by 80%

and built a 3000 crore company with just 1.1 lakhs in savings:

by Smitirupa Sahu
1. Dr Velumani's revolutionary approach and cost reduction strategy
2. Business lessons to learn from the rise of Thyro care Technologies
India has a large diabetic population, making diabetes
care a significant market.

The Indian diagnostic market is divided into pathology

tests and radiology tests.
Doctor Velumani focused on building his business in the pathology
test market.

In its humble beginnings, Thyrocare Labs faced challenges

but remained focused on delivering high-quality
healthcare services.
Thyrocare focused on
pathology tests due to
scalability and automation.
Radiology tests require onsite equipment, while pathology tests can
be centralized.

The market gap in preventive care services prompted Thyrocare's

focus on this segment.

Biochemistry tests were chosen due to stable samples and

automation opportunities.
Thyrocare established a hub and spoke
model for sample collection, leading to
higher efficiency and profits-

1)The main lab acted

as a hub and other
centers were
2)The hub had collection points.
advanced equipment
while the collection
centers had basic 3)Bulk purchasing of
equipment. chemicals increased
margins.
4)Lower test costs
and high profits
helped in
technological
advancement and
recruitment.
Thyrocare's success lies in its selective
test services, cost-saving
outsourcing, and efficient hub and
spoke model.:
Thyrocare only offers 200 tests, focusing on high-profit, scalable tests that
can be automated.
Thyrocare outsources the rest of the tests to other companies, saving on
equipment costs.
Thyrocare's hub and spoke model with a central processing lab is more
efficient and cost-effective compared to competitors' multiple regional
labs.
Thyro care became a successful
company in the diagnostics
industry in India due to its
automated labs, efficient
logistics, and cost optimization.
Thyrocare's labs are fully automated and can perform tests 24/7
with a massive capacity of 1.2 lakh tests per day, 3.6 million tests
per month, and over 40 million tests per year.
The company optimized its logistics to reduce air transportation
cost to just 5 rupees per sample.
Thyrocare achieved economies of scale by procuring
consumables at a 20% cheaper cost than its competitors.
The company's reduced capital expenditure and employee cost,
along with higher franchise commission rates, helped in better
profitability.
Introduction of Technology and
Automation
Streamlining Processes
Thyrocare Labs introduced
cutting-edge technology and
automation to enhance
accuracy and efficiency in
diagnostic services.
Improving Diagnostic
Capabilities
The company invested in state-
of-the-art equipment and
advanced medical technologies
to offer a wide range of
diagnostic tests.
Data-Driven Insights
Utilizing data analysis and
predictive modeling, Thyrocare
Labs provides valuable insights
for accurate diagnoses and
tailored healthcare solutions.
Thyrocare Technologies' success is
attributed to choosing the right market
gap, adopting a unique operational
model, and offering a selective range of
tests.:
Lesson #1: Choose your market gap carefully, like choosing pathology over
radiology.

Lesson #2: Innovate by building a central processing model instead of following the
hub and spoke model.
Lesson #3: Select offerings carefully; fewer products can lead to higher profits.

Thyrocare's success resulted in more profits for employees, shareholders, and

better pricing for customers.