Price rationalisation, consolidation likely in Indian diagnostic space

Competitive pricing, however, is here to stay, feel analysts and some industry insiders

India’s Rs 55,000-crore diagnostic sector - largely dominated by unorganised players - is set for a shift in dynamics. This is possible largely due to the entry of online aggregators backed by companies with deep pockets.

Price rationalisation and consolidation are two key trends that will shape the industry in the years to come. From 15 per cent share, the share of organised players is likely to rise to 25 per cent in three to five years, observe analysts. Industry players beg to differ.

Ravindra Kumar, vice-president and head, Lupin Diagnostics, says consolidation will happen, albeit over a longer horizon.

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