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Reliance Retail Ventures plans expanding in diagnostic healthcare: Report

Company said to be considering acquiring majority stake in dedicated diagnostic services firm

Health, Healthcare

The diagnostic healthcare sector is poised for growth, attracting the interest of larger companies in the industry. (Photo: unsplash.com)

BS Web Team New Delhi

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Reliance Retail Ventures is preparing to expand its business in the $150 billion diagnostic health care sector, Hindu Business Line reported on Tuesday. The company is considering acquiring a majority stake in a dedicated diagnostic services firm by investing Rs 1,000-3,000 crore.

The Mukesh Ambani-owned retailer is looking for a player with a nationwide presence, said the report.

Reliance Retail’s portfolio includes online pharmacy Netmeds, which offers pathology services through its tie-ups with other companies such as Thyrocare, Healthians among others.

While Netmeds already offers pathology services through collaborations, Reliance Retail Ventures intends to establish its own diagnostic company to establish a network of physical laboratories across India, providing a wide range of diagnostic services and enhancing scalability.

In 2020, Reliance Retail Ventures acquired a majority stake in Netmeds for Rs 620 crore. As of January 2023, the collaboration has expanded into establishing over 1,000 offline outlets.

Diagnostic sector’s growth

The diagnostic healthcare sector is poised for growth, attracting the interest of larger companies in the industry.

Ratings agency CRISIL, in a report in April, predicted that the diagnostic companies are poised to register 10 to 11 per cent growth in revenue in the financial year 2025.

“While geographic expansion by established players into Tier-II and Tier-III cities will drive higher patient volumes, growing demand for comprehensive preventive health packages will lead to higher realisation per patient,” the agency added.

Experts have attributed the rise in preventive health checkups to a renewed focus on health after the pandemic.

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First Published: May 14 2024 | 12:17 PM IST

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