India’s healthcare industry has been growing rapidly, especially after the COVID-19 pandemic. People are now very aware of their health, and they are keen to check their body tests regularly. In this trend, the popularity of lab tests has increased rapidly. 

So if you’re looking for a business that has been growing, then I must say you should consider Dr Lal Path Labs. 

In this article, you will learn everything you should know about this franchise. So at the end of the article, you will know whether a franchise is for you or not.

About Dr Lal Path Labs

Dr. Lal Path Labs was established in 1949 and has emerged as one of the respected diagnostic chains in India. The company has over 200 labs and 4,000 patient service centres, which operate nationwide. 

It has over 5,000 packages and tests covering blood tests, urine tests, radiology, and body checkups. I used their services when I wanted a full body checkup, not only for me but also for my parents.

In this sector, Dr Lal Path Labs has been a big name for many years with their exemplary service.

Types of franchise offered

1. Collection centre franchise

This is the most common franchise of Dr Lal Path Labs, where you have to collect the samples, and the test will be held at the main central laboratory of testing. No testing is done at your space.

This model:

• Generally requires low investment
• Quite easy to manage
• You can start in a tier 3 city and residential areas

2. Diagnostic Laboratory franchise

In this model, the basic test is held at your space, and the rest of the test is conducted at the central laboratory. 

This model:

• It requires a high investment
• Needs more space and equipment
• Perfect for large cities where the customer base is high in number

Dr Lal Path Labs Franchise cost

Let’s know the breakdown of the cost

1. Franchise cost

 You need to pay an initial franchise fee to get the license to use the brand name of Dr Lal Path Labs. You need to pay off about Rs 1.5 lakh- Rs 2 lakh.

2. Setup and Interior cost

The setup and interior include a reception desk, air conditioning, branding and signboards, and a waiting area. You need to maintain a healthy and clean environment for your patients. It will generally cost you Rs 3- Rs 6 lakhs.

3. Equipment Costs

Although you don’t conduct tests, you need basic equipment to collect and store samples diligently.

It includes

• Blood collection chair
• Refrigerator
• Sample containers
• Safety Gloves, masks, and PPE kits.

It will cost you around Rs 50K-Rs 1 lakh

4. Working Capital

You need to have enough money to run daily operations like rent, salaries and electricity. Because it takes time to become profitable or reach at break-even point. You need to maintain at least Rs 1 lakh.

If I talk about the total estimated costs, then it is around Rs 6 lakh- Rs 10 lakh.

Note: This is an estimated figure; you can reach out to their official site for more accurate information.

Space Requirements

If I talk about the space requirements, you don’t need much space, but you need a clean, well-maintained office and easily accessible.

• You need a minimum space of 150 to 300 square feet.
• Ground-floor location you should preferred.
• Good visibility and footfall
• Should be located in a residential or semi-commercial area.

A well-maintained and hygienic environment builds goodwill and customer trust.

Why should you own a DR Lal Path Labs?

1. Good Brand Image

Dr Lal Path Labs is a company that has been dealing with the diagnostic business since 1949. It is one of India’s most trusted chains in pathology. In a franchise business, you already get the fame that what brand jas earned over the years.

The brand is already familiar to the people, and they are very likely to walk into your collection centre as opposed to even a low-profile lab.

Outcome: You save time, money, as well as effort in persuading customers to believe in you.

2. A healthy Thriving Health Care Sector

India is rapidly emerging as a market that demands health checkups, diagnostic tests, and preventative care. Following the COVID-19 pandemic, additional people are making investments in frequent testing and health.

Having a franchise will enable you to enter this steadily growing industry with year-round demand. Diagnostics is not a seasonal business, unlike the case of season, and the need-based and therefore recurring business is on one hand.

3. Minimum Investment, Maximum Returns

You need not have crores of rupees to put up a diagnostic centre. This franchise of Lal Path Labs can be opened with a small capital of ₹ 6 to 10 lakhs only. Since you don’t need to buy expensive testing machines (especially in the collection centre model), your risk is low.

Moreover, the profit margins are good; it is usually a 20 per cent to 30 per cent commission on each test. You just need to find a place where the pitfall is high.

4. Little Technicality Required

A Dr. Lal Path Labs franchise does not require you to be a doctor or a technician in the laboratory. The company will train you and your staff in how to:

• Handle customers
• Sample storage and collection
• Billing and reports software Use

5. The Company Training and Company Support

You do not feel all alone when you own a franchise. Dr. Lal Path Labs offers:

• Complete full training
• Marketing of a franchise
• Billing and reporting programs
• Sample pick up and delivery
• The customer service rules
• Support in licenses and regulations

Doesn’t matter whether you are a beginner or an experienced guy in this field, the training will be provided at every stage.

6. Shorter Time to Break-Even and Constant Income

A franchisee, in most situations, can recover their money in 12-18 months after opening, depending on the location and the marketing efforts.

As soon as you establish your regular customer base and collaborate with local clinics or doctors, you can earn comfortably, as soon as you have regular and stable incomes and minor stress.

7. The Home Collection Opportunity

You will be able to provide home sample collection services. People prefer a comfort zone and especially when they are not feeling good, which generally happens in this situation, so here, home collection is a good strategy to attract many customers. 

This will make you appealing to busy professionals, elders, and families who do not want to go to a lab.

Such a service provides additional income to your business without an additional effect on the overheads.

8. Decent Business in the Society

A Dr. Lal Path Labs franchise is a healthcare business that helps the entrepreneur earn a living by serving people. You serve people and give charity to your neighbourhood.

It is a decent and moral business in which you can be proud of making a real difference in the lives of people. In short, you are doing social services and get good wishes from the people that you are giving services to.

9. No Worried About the Accuracy of Tests or Reporting

Your entire sample collection is tested in the central laboratory of Dr. Lal Path Labs. This ensures that you will not need to go through acquiring machines, hiring test technicians, or receiving test reports.

All you have to do is concentrate on customer service, hygiene, and the flow of operations.

10. Expansion Opportunities

After ensuring that your initial investment is doing great, there is a chance that the company might give you a chance to establish other centres in surrounding locations. 

That is, as time goes by, you can expand your business and earn a higher wage without the need to begin all over again. 

FAQs

What is the margin of profits?

On every test that is completed at your centre, you earn 20 to 30 per cent commission of the total value of the test. Having a steady inflow of customers, you can earn between Rs 40,000- Rs1.5  lakh per month.

Who does the testing and reporting?

Here, in the case of Dr. Lal Path Labs, all the tests are done in their central labs. The lab will just take samples and upload the reports offered by the company to the customers.

Will the company offer any training?

Yes. Dr. Lal Path Labs will fully train you and your employees on operations, handling of the samples, software use, and customer service.

How soon can the franchise be initiated in case of approval?

After getting an agreement, the setup and starting of operations normally take 30 to 45days, depending on the place.

Conclusion

In conclusion, looking into the trend, the popularity of the healthcare business is increasing than any other category. With an investment of just Rs 6 Lakhs to Rs 10 Lakhs, you can open a collection centre with the reputation of a big brand name that has served its customers since 1949.

The best part is you don’t need a medical background as the company provides the training, logistics, and support.

People are now educated enough to take care of their bodies, and they check their body tests every 6 months to know whether their bodies are working well or not. In this Lab franchise, people trust Dr Lal Path Labs because of their accurate reports.

So I don’t think you will find a better franchise than Dr Lal Path Labs.