BUSINESS PLAN AND GO TO MARKET STRATEGY

FOR 50 DIAGNOSTICS AND PHARMACY CENTERS

 Stand Alone Lab segment Business in INDIA for 2019-2020

2700

4500

1800
MARKET
BUS volume in CR Organized Players Like LPL/SRL/Thyrocare and Metropolis
OVERVIEW
Un orginzed market side
PAN INDIA
 MARKET PLAYERS TN - DIAGNOSTICS

Hitech Apollo Neuberg Medall

Lister Metropolis
Diagnostics Diagnostics Diagnostics Diagnostics
• 6 Operating Lab • 6 Operating Lab • 3 Operating Lab • 5 Operating Lab • 5 Operating Lab
• 150 + Collection • 70+ Collection • 70 + Collection • 50 Collection • 60 + Collection
Centers Centre Centers centers centers
• 3 HLM in • More Focus On • More Focus on • Full B2 B Focus • B2B Focus
Chennai B2B B2C • Home collection • Home collection
• Home collection • Home collection • Home collection 20 close to 25
staff close to 30 staff close to 25 Staff close to 30 • Turn over close • Turn Over 40 Cr
• Turn Over of • Turn Over of 80 • Turn Over of 20 50 Cr
100 Cr Plus Cr + Cr +
 CHAIN OF PHARMACY IN CHENNAI

Medplus Muthu Pharmacy Apollo Pharmacy Karuppiah Pharmacy

• 90 + Outlets • 30 + Outlets • 100 + Outlets • 10 Outlets
• Average Walk in • Avg Walk in 40-50 • Average Walk per • Avg Walk in per
per center – 50-75 • AVG Monthly center– 50-100 center – 30-50
• AVG Monthly Business -4-5 CR Prescription Prescription
Business – 10 – 12 • Home collection – • Avg Monthly Turn • Avg Monthly – 3-4
Cr 25 L /PM over – 10-15 Cr Cr
• Home Delivery – 1 • Home Delivery – • Home Delivery –
Cr/PM Close to 1 Cr/ PM 10 L/M
 BUSINESS MODELS OF CHENNAI AND 5 YEARS
BUSINESS PLAN
Focus of Business AREA for Diagnostics is B2B market in Chennai

IN B2B/ B2C Market the focus is

A. Small Stand-Alone Lab to be converted as our Franchise / Appoint Direct Franchise – Minimum 50 Centers

B. Small Nursing Homes and Hospitals ( less than 50 Bedded) as Pick Up Centers

C. Sample Collection Center to Pharmacy Outlets and DDC Models with Technician – Minimum 50 outlets

D. Stand alone Scan Centers and Imaging centers to convert as Collection Centers

Area to Focus in First year Business plan is Chennai and Peripherals of Chennai Suburbs, like Tambaram to Chengalpattu,
Kancheepuram, OMR and later Rest of TAMILNADU and to Have 50 Outlets Pin Code Wise in Chennai and Suburbs
 SIMS will Provide
Small labs will be Transfer cost with our
Will Provide Sign Board
converted as collection Margin Built In with
Support with Branding as
centers to Extend their Option of Credit and Cash
SIMS Collection Centre.
Menu of Testing. on Pick up – with
A. STAND ALONE Discount

SMALL LABS AS
We will install our
COLLECTION Will Provide a 2 Free Pick
software in their lab and
up of Samples / Day and Will Extend Support of
CENTERS Additional would-be
once the lab reports is
Home Collection Pick up
done lab can download
FRANCHISE costing Separate
this reports directly.

Case to case basis will

Criteria: discuss about Rent
Sharing/EB Bill
• 100 SFT Space with in Built Toilet Sharing( on volume
• Should connect Minimum of 5 to 10 Samples a Day commitment)
• Capable of Connecting 5 Prescribing Doctors
• Minimum Billing Per month to SIMS on Transfer Cost
Rs 1.5 Lac Investment from SIMS:
• Space Interior if Any on LAB Owner. • Software to be installed in their System
• One Shared Logistics person – Rs 5000 Per month
For Home collection on Free of cost, Franchise monthly • Additional OPEX Cost ( Any Special Case of Sharing EB
business should be Rs 2.5 Lacs on our LAB to Lab Rates. Bill/ Rent For Good Volume) – Rs 10000 Per month
Else will be at charges per collection. ( Separate Criteria
enclosed for Home collection)
 We will support Small HLM Model: We will install only Bio
Nursing Homes/ We will provide on Chemistry Semi Auto/ Fully Auto Analyzer
B. SMALL Hospitals as In house Lab
With Routines IN House
and other Non Parameters
Revenue Sharing Model /
Net Transfer Cost ( Lab
to Lab Rates)
( Depends on load) and 3 part cell counter
and 1 Coagulation Analyzer. Electrolyte
NURSING to our Hub Lab Analyzer on case to case basis as HLM

HOME AND We will appoint 4 technician

for 24x7 duty and one Doctor
All Micro Biology,
We will provide support
on marketing with one
HLM will be responsible for Digital
signature and will visit to LAB
Histopathology and
Immunoassay will be sent
free camp on every 3
months to improve
to our reference LAB. hospital load.
once in a week for verification.

IF SIMS Process any routine samples from

Nearby collection center – will offer 5 %
Overriding commission
Criteria:
• Space for Lab should be minimum of 200 – 300
Investment from SIMS:
SFT with AC and UPS from Hospital Side.
1.Per lab we need invest on Instruments approximately Rs 10 to 15 L
• Should have minimum of 30-40 samples a Day
Based on the Semi or Fully Automated Analyzer
• Revenue should minimum of Rs 5 Lacs Per month
2.Fixed cost per month would be approximately Rs 75 K( Man power
on Gross Billing and 2.5L on Net Billing.
cost and Logistics Cost)
• Should sign agreement for 5 years with minimum
3.Reagents and consumables would be Approximately Rs 75 K Per month
service Guarantee for 3 years.
4.IN case if we get RS 2.5 Lac per account and even if we spend Rs 1.7 L
• Free Home Collection for Ticket size of 500 Rs
and 0.2L for Capex Recovery and we will still end up in Rs 60 K per
month which is 12 % EBITA on Gross volume.
 C. SAMPLE
COLLECTION
SERVICE FOR SIMS will Provide
PHARMACY have own Pharmacy Will Provide one Will Support with Computer and Printer with
Outlet which can be Collection Technician Software for Sample Registration and as well as
converted as Sample for Sample Report Down load
( FRANCHISE Collection Centre
MODULE)
Will organize camps
Will Extend Home and Awareness
SIMS Diagnostics will Bill Collection Support for Program Related to
and Collect Near By Housing Health Disease and
Society COVID

Criteria:
• Since its SIMS Pharma Outlet, no Much Criteria
Investment from SIMS:
1. One computer and Software with Printer – Rs 50 K
2.One Collection Technician and Logistics – Rs 20K
3.Shared Rent / EB Bill with Pharma and Diagnostics
 BUSINESS AND GROWTH PLAN FOR 5 YEARS
BUSINESS
YEAR Wise plan 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 Built UP
             
Small Labs 100000 1400000 2600000 3800000 5100000 5100000
             
Small Hospitals 200000 3000000 5600000 8000000 10600000 10600000
             
Pharma / DDC /Scan Centers 100000 1400000 2600000 3800000 5000000 5000000
             
Year wise Growth 400000 5800000 10800000 15600000 20700000 20700000
             
% of Growth   93 46 31 25  
 • PROPER IT SOFTWARE WITH LIMS AND INTERFACING.
• PROPER HR SUPPORT WITH POLICIES ON MANPOWER HIRING AND AS WELL
LOCAL AND OUTSTATION CONVEYANCE AND ALLOWANCE SUPPORT TO BE
FORMULATED.
• SALES AND BUSINESS SUPPORT ( WILL DISCUSS WHEN WE MEET).
• MARKETING AND DIGITAL MARKETING SUPPORT WITH GOOD DESIGNER.
• DATA BASE ( TO BE PREPARED BY BUSINESS TEAM AND SOME DATA IS
ENCLOSED ALONG WITH THIS FILE)
• DOS OF SERVICES

SUPPORT • PRICE LIST

REQUIRED • COST OF REAGENTS AND CONSUMABLES AND NEED TO DO A REVERSE

CALCULATION ON CPRT.
• MAN POWER BUDGETING
• BUSINESS BUDGETING.
• LAST BUT NOT THE LEAST PROPER FINANCIAL SUPPORTING TO ENSURE OUR
BUSINESS PLAN WORK 100% FOR OPENING 50 COLLECTION CENTER AND
PHARMACY
 • OUR FIRST YEAR BUSINESS BUILT IS CLOSE ( 2021-2022) IS 5.8
CR
• WE MAY REQUIRE CLOSE TO 20% OF THIS IN CAPEX COST
AND 15% ON OPEX COST AND 5% ON MISC.
• THE ABOVE IS THE BASIC OF COST MAPPING FOR BUDGET
VS EXPENSES.
BUDGETING OF THIS • FOR EXAMPLE IS OUR FIRST YEAR PLAN IS SAY RS 6CR
PLAN APPROXIMATELY AND THAT MEANS CAPEX WE REQUIRE
CLOSE TO RS 1.2CR AND OPEX COST 1 CR AND MISC 30L
WHICH WILL BE CLOSE TO RS 2.5 CR AS OUR BUDGET FOR
FIRST YEAR BUSINESS PLAN.
• THE ABOVE MAY VARY BY 10% AS PER THE BUDGET
ACHIEVED BY BUSINESS TEAM.