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How did Dr Velumani turn Thyrocare into a 3000 crore company? : Thyrocare case study
Diabetes and Thyroid have been 2 of the fastest-growing diseases in the country. According to the International Diabetes Federation (IDF), India had 77 million (say with impact) adults living with diabetes in 2019. And about 42 million people in India have thyroid-related issues. In fact, India is known as the diabetes capital of the world.
and back in 1995, if you had to get your thyroid testing done, it would have cost you 500Rs which is equivalent to 2800Rs in today’s money, now for a country where 90% of the people still earn less than 30,000Rs in 2023, 500Rs in 1995 was a big big deal!!!
But you know what, one man named Dr Velumani did something so revolutionary that he brought down the cost of thyroid tests by 5 times to just 100Rs!!and with just 1.1 Lakh in savings, this man built such a legendary company that today this company is worth more than 5000 crores!!
This company that I am talking about is none other than Thyrocare Technologies. and dr velumani turned Thyrocare into such a legend that, it went on to compete with a 6000-crore company like SRL Diagnostics and an 18,000-crore company like Lal path labs!!! If you look at this chart, when Thyrocare went IPO, Dr Lal path lab’s EBITDA margin stood at 28%, srl diagnostics stood at 18%, whereas Thryocare stood at an EBITDA margin of 47%!!!
The question how did Dr Velumani manage to build a 5000 crore company with just 1.1 Lakh in savings?
How was he able to bring down the cost of Thyroid tests by 5 times and still make a profit?How did he manage to challenge the big boys like Dr Lal and SRL?
and what are the business lessons that we need to learn from this iconic Indian company?