20% CAGR growth expected in the Healthcare industry: Dr A Velumani, Thyrocare

20% CAGR growth expected in the Healthcare industry: Dr A Velumani, Thyrocare

Dr. A. Velumani, Chairman & Managing Director (CMD), Thyrocare, talks about the COVID vaccine distribution play, Union Budget and expectations from it, expected growth in next 10 years and expansion plans during an interview with Swati Khandelwal, Zee Business. 

Q: What is your view about your company and sector in 2021? Also, what kind of play this complete vaccine distribution play will have on your business?

A: In the first week of April itself, I was saying that the Sensex will reach the 50,000 level before the end of 2021. Interestingly, it has already passed the 49,000 level. My positive outlook was very good for the country. I knew it, beforehand, that COVID, which scared us a lot, is not as dangerous. So, I took a risk against my reputation and said ‘India is Blessed’ and today the COVID-death rate has gone down below 300 deaths per day. This means COVID came to an end with 2020. I was saying about healthcare and can still say, there will be good work on healthcare in the next 10 years. The government, as well as individuals, were spending very less on the healthcare but both have a fear due to which more money will be infused in the sector, more players will come in the sector, the competition will increase and more jobs will be created. The healthcare’s Compound annual growth rate (CAGR) stood at 12-13% in the decade (2011-20) that has ended but it is likely to go up to around 20% in the next decade that started in 2021.  



Q: Union Budget 2021-22 is round the corner. What are your expectations from the government and what is the level to which the government’s expenditure should be increased for space? 

A: It is a matter of happiness, as the politicians did not know that healthcare could turn into an issue of vote bank. COVID has taught everyone that politicians can’t get a more impressive or better area to work. If you will have a look at COVID test, you will find that every state government has reduced its cost from Rs 4,500 per test to around Rs 800 by capping it. This is why the common man thinks that my government is loving us. So, this will continue and the government will have to spend more, please the vote bank, therefore the budget will also be in the line of the vote bank, accordingly, a lot of funds will be deployed in the healthcare sector. At the same time, the government will have to devote more money on Ayushman Bharat project, which was launched two years ago. So, in this budget, the scared government will allocate more money/ funds in the healthcare sector for the scared common man. It will also focus on infrastructure, improvisation of healthcare. Overall, it is going to be a very good budget and this is my expectation.

Q: At the time, when you are saying the healthcare’s CAGR is likely to double in the next decade, so, how Thyrocare, which is a big diagnostic company, will leverage this growth? What are your growth plans and where do you see your company after 10 years from here?

A: If told in just two words, then it is ‘Keep Going’. The country is big, the market is big and the opportunity is also big. Also, COVID has increased awareness. So, more menu, more geography, and more aggression are needed and just be on it. Suddenly, you do not need to change anything by planning something, already we were quite focused. But it is such that things are getting digitalized and awareness is increasing. And this year, there has been a big jump in wellness profile. If a common man has to take care of his health than ‘Prevention is better than Cure’. For instance, Mr Saurav Ganguly has gone through an operation and Dr Devi Shetty has said that if a prevention test would have been conducted then the situation would have not reached to this stage. So, this doesn’t relate to just one disease or disorder but wellness can allow people to keep themselves healthy and we are ready for it. We have our presence across India and we have regional laboratories at present and have plans to take to the numbers up to 40. We have one centralized laboratory in Mumbai and we have plans to make it four by replicating it. So, the plans are good but it will happen on the way the market responds to it. Accordingly, the investments will be made because of the investment stands ideal then it will lead to losses, which means it should run. So, the infrastructure growth will depend on the kind of business that we will get.

Source link

Sagar Influence

My name is Sagar Biswas and I am a parttime Blogger and a Youtuber and I have completed my 2nd PUC and Now I am pursuing my Degree and I manage more than 2+ Blog and 1 Youtube channel I stay in Karnataka State Bengaluru City.

Leave a Reply

Your email address will not be published. Required fields are marked *