How to Start A Dr Lal Path Lab Franchise in India?

Healthcare in India as per the Indian Constitution is the responsibility of the state governments rather than federal governments. The state government is responsible for increasing the nutrition level and improving the standard of living for its people and also improve public health.

The industry has turned into one of India’s largest sectors in terms of revenue and employment. Healthcare basically consists of hospitals, medical services, clinical trials, health insurance, medical equipment and many more. The healthcare sector has been growing at a fast rate because of its coverage, services and constant increase in expenditure by private as well as public players in the market.

Dr Lal PathLabs franchise is one of the oldest private pathology lab chains across the world. These labs have over 60 years of experience in providing pathology services to its customers by using state-of-the-art technology and medical equipment.

The laboratory provides top-notch quality services relating to Molecular diagnostics, Endocrinology, Oncology, Toxicology, Infectious diseases and many more. Dr Lal PathLabs has received the highest accreditation from College of American Pathologists (CAP), National Accreditation Board for Testing and Calibration Laboratories (NABL), Ministry of Science and Technology, Govt. of India, and ISO 9001:2000 certification which is considered as India’s highest accredited laboratory.

Dr Lal PathLabs history

Dr Lal PathLabs was established in 1949, by Late Dr S.K.Lal in Delhi. Dr Lal was a junior doctor in the British Indian Army and pursued his studies in the field of pathology from the Armed Forces Medical College in Pune. He also received additional training in the same field at Cook County Hospital in Chicago, USA.

The main services carried out by Dr Lal PathLabs was diagnostic and testing, which included routine tests such as blood tests, specialised tests and preventive screenings.

It was in 2013 that Dr Lal PathLabs was awarded as the best diagnostic service company by VCCircle as the lab was able to create a brand name in the market. Dr Lal PathLabs is presently operational in over 800 cities with 2,000 collection centres. It provides services to over 10 million patients every year.

What is the USP of Dr Lal PathLabs?

Dr Lal PathLabs is well-positioned in the market

Dr Lal PathLabs is considered as one of the best diagnostic laboratories that India has in the Healthcare Industry. The lab provides a wide range of healthcare solutions along with other services such as state-of-the-art pathology, radiology and cardiology services to its patients.

In today’s fast-moving life Dr Lal PathLabs have specifically designed packages keeping in mind that not all diseases and infections show an early warning symptom, therefore Dr Lal PathLabs aims to provide accurate detection in such situations. By showing extreme dedication and commitment towards its patients Dr Lal PathLabs has become one of the most respected and well-positioned companies in India.

Established consumer healthcare brand

Dr Lal PathLabs has been catering and providing diagnostic services to almost 10 million patients in a year. This has lead to Dr Lal PathLabs being recognised as India’s highest accredited lab receiving its accreditations from CAP, NABL and ISO. The lab has nationwide coverage in both Tier 1 and Tier 2 cities along with 24*7 dedicated logistics team.

It also provides online access for its patients to see their reports and also has an option of collecting samples from homes as well thereby making their customer’s life easier. This is the main reason why Dr Lal PathLabs has successfully managed to have a diverse and large customer pool.

Benefits of owning a Dr Lal PathLabs franchise

dr lal pathlabs franchise
  • It is India’s oldest private chain of pathology laboratory chain which has over 60 years of experience in the field of pathology.
  • The company uses top-notch technology and state-of-the-art medical equipment to diagnose diseases and provide accurate detection of the tests.
  • They have a team of dedicated logistics employees who are available for its customers 24*7 for any queries that need to be resolved.
  • Dr Lal PathLabs has also successfully designed diagnostic packages for customers keeping in mind that certain diseases don’t produce early warning signs.
  • The Lab also provides pre-employment health checkups, annual health checkups, discounts and other drug testing for companies who have a corporate tie-up with Dr Lal PathLabs.

The packages make corporate employees life easy by providing them with:

  1. A Personalised app where the employees can book any tests they require.
  2. Lighting fast accurate test results
  3. Customised wellness packages that have been made to suit employee needs
  4. Employees can also see their lifetime cumulative reports and understand the progress they have made.
  5. They also provide the company with an online HR wellness portal to manage every employee’s wellness.
  6. The laboratory also does a health risk assessment to make sure the employees live a healthy lifestyle
  7. They also provide end to end automation so that the employees can focus on their job.

What are the requirements for setting up Dr Lal PathLabs franchise?

Area requirement

Dr Lal PathLabs company offers franchise opportunity for two kinds of outlets. They are: Dr Lal PathLabs diagnostic centre franchise and Dr Lal PathLabs collection centre franchise.

Dr Lal PathLabs diagnostic centre franchise
A diagnostic centre is a place where the tests take place and where the results of the tests are determined. The area required to set up a diagnostic centre franchise is 3,500 Sq.ft approximately. The land should be on the ground floor at a central location.

Dr Lal PathLabs collection centre franchise
The collection centre is an outlet where the staff collects the samples from its customers and then sends it directly to the diagnostic centre to conduct tests on the specimen. The area required to set up a collection centre franchise is 150-300 Sq.ft approximately. The land acquired for the franchise should be on the ground floor at a commercial area.

Skills or experience required 

  • A pathology lab technician or lab assistants should have an associate degree in the field of laboratory science along with some previous lab experience.
  • The main role or the technician should be the ability to multitask.
  • They should have the knowledge on how to prepare, store and examine the specimens.
  • Have strong verbal and written communication skills
  • Should be able to work easily with spreadsheets and medical software
  • Should know how to operate medical equipment and conduct procedures and examine the final result
  • The candidates should be willing to work over weekends, evenings or even overnight.
  • The lab should also have a cleaning crew to keep the lab spotless and sterile.
  • The lab should also recruit receptionist to make sure the customers register themselves and who gives them any other information that the customer requires.
  • The lab should also recruit an accountant to maintain the books and also keep a check on the inventories/stock.

Regions of operation

Dr Lal PathLabs has a Pan-India integrate coverage with over 189 clinic labs, 1759 patient centres and 5021 pick up points as on March 2017. They have labs in regions such as Bangalore, Delhi, Kolkata, Gujarat, Goa, Tamil Nadu, Chattisgarh, Madhya Pradesh, Mumbai, Pune and many more

Training required

  • A training manual will be provided to all the franchise outlets to help them understand how the lab works.
  • On-site franchise training will be provided.
  • Field assistance will also be assigned at the opening of the franchise.
  • Marketing and advertising assistance will also be provided by the company.

Minimum staff requirement

The laboratory will require lab technicians, nurses, HR, receptionist, accountant, cleaning crew. Approximately an operational laboratory would require a minimum of 15-20 employees.

How Much Does It Cost a Dr Lal PathLabs franchise in India?

Dr Lal PathLabs diagnostic centre franchise

The investment required to set up a diagnostic centre franchise is Rs.1.25 crore. This investment amount excludes laboratory equipment and testing instruments.

Dr Lal PathLabs collection centre franchise

The investment required to set up a collection centre franchise is Rs.3,00,000 – Rs.5,00,000 depending upon the location.

Franchise agreement

The franchise agreement is signed for a period of 2 years which can be renewed once the term is over.

Profitability explained through a hypothetical example

Total investment to set up a pathology lab = Rs.90,00,000

Expenses incurred monthly

Rent paid for a 3000 Sq.ft area – Rs.4,00,000

Salaries paid to 15 employees (Rs.10,000*15) – Rs.1,50,000

Miscellaneous expenses – Rs.40,000

Total expenses incurred in a month = Rs.5,90,000

Income earned in a month

Average footfall of customers getting their tests done in a day – 50
Average amount a person spends on a test – Rs.2000

Total income earned in a day (50*Rs.2000) = Rs.1,00,000

Total income earned in a month (Rs.1,00,000*30) = Rs.30,00,000

Gross profit earned in a month (60% of Rs.30,00,000) = Rs.18,00,000

Total profit (Rs.18,00,000 – Rs.5,90,000) = Rs.12,10,000

You will recover your entire investment within 7-8 months.


Dr Lal PathLabs has shown exceptional growth in the Healthcare industry in India as they are considered as one of the few path labs that have a long-standing history in creating an impact on the healthcare economy. Dr S.K.Lal with its immense knowledge and expertise in the pathology field has created a company with a strong brand name that it became the first pathology laboratory in India to receive three accreditations from CAP, NABL and ISO.

Dr Lal PathLabs has become a centre for innovation and a premier clinic across India. It is clearly seen that investors have been happier with Dr Lal PathLabs as it has been showing the constant ability to grow both in terms of expansion and profits. In a recent article Dr Lal PathLabs profits have increased to 301.10 crores at the end of March 2019 when compared to March 2018 when the total profit was Rs.266.80 crore.

Dr Lal PathLabs has shown remarkable growth, constant growing profit margins and a strong brand which displays an opportunity for people across India to take up Dr Lal PathLabs franchise outlet and grow along with them while earning additional income for yourself.

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