About Chandan Healthcare Limited

Business Overview

Chandan Healthcare operates a diagnostic network across North India, offering pathology and radiology testing services. As of December 31, 2024, its infrastructure includes one flagship lab, nine central labs, 27 satellite centers, and 300+ collection centers across Jaipur, Uttar Pradesh, and Uttarakhand, covering 23+ cities in Uttar Pradesh and 19+ cities in Uttarakhand.

The company has eight NABL-accredited labs and three NABH-accredited diagnostic centers. Between April and December 2024, it conducted 55.79 lakh tests for 17.11 lakh patients, with 70.04% of revenue from Uttar Pradesh. Its 1,496-test menu includes routine and specialized pathology tests and 545 radiology tests, supported by 11 CT scanners and four MRI machines.

Revenue Breakdown (Dec 2024):

• 47.00% from product sales
• 34.22% from pathology services
• 18.77% from radiology services

The B2B segment drives significant revenue through corporate partnerships, while the B2C segment serves individuals via labs, collection centers, and home collection services. A cluster-based model improves efficiency by centralizing sample processing.

Chandan Pharmacy Limited (CPL)

CPL operates 31 retail outlets in Uttar Pradesh (23) and Uttarakhand (8), selling pharmaceutical, FMCG, and surgical products:

• Pharmaceuticals: Tablets, capsules, syrups, ointments.
• FMCG: Thermometers, masks, gloves, air fresheners.
• Surgical: Gauze, syringes, shaver blades, needles.

As of December 31, 2024, the Company had a team of 15 radiologists, 23 pathologists, and more than 161 qualified professionals including clinicians, technicians and operators. The Banker to the Comapny is ICICI Bank Limited.

Industry Analysis

HEALTHCARE INDUSTRY IN INDIA
The hospital industry in India, accounting for 80% of the total healthcare market, is witnessing a huge investor demand from both global as well as domestic investors. India ranks 10th in Medical Tourism Index (MTI) for 2020- 2021 out of 46 destinations of the world. Foreign Tourists Arrival on medical purpose increases from 1.83 Lakh in 2020 to 5.04 Lakh in 2023 (Jan-Oct). The diagnostics industry in India is currently valued at $ 4 Billion. The share of the organized sector is almost 25% in this segment (15% in labs and 10% in radiology). 1,56,000 Ayushman Bharat centers, which aim at providing primary health care services to communities closer to their homes, are operational in India. which shows that health services are being saturated, including by use of digital tools.

The Indian Healthcare industry continued its healthy growth in 2023 and reached a value of US$ 372 billion driven by both the private sector and the government. India’s hospital market was valued at US$ 98.98 billion in 2023, projected to grow at a CAGR of 8.0% from 2024 to 2032, reaching an estimated value of US$ 193.59 billion by 2032. In the Interim Union Budget 2024-25, the government allocated ₹ 90,659 crore (US$ 10.93 billion) to the Ministry of Health and Family Welfare (MoHFW).

India climbed to the 63rd rank among 190 countries in the World Bank’s ‘Ease of Doing Business’ rankings in 2020. The World Bank’s Logistics Performance Index (LPI) 2023 has ranked India at 38th position (out of 139 economies), recording an improvement of 6 positions. As of 2024, the Indian healthcare sector is one of India’s largest employers as it employs a total of 7.5 million people. Progress in telemedicine, virtual assistants, and data analytics is expected to create 2.7-3.5 million new tech jobs.

The healthcare sector, as of 2024, is one of India’s largest employers, employing a total of 7.5 million people. The demand for Indian healthcare professionals is expected to double nationally and globally by 2030 due to a shortage of healthcare workers in India, where there are only 1.7 nurses per 1,000 people and a doctor-to-patient ratio of 1:1,500 nationwide.

REVOLUTIONIZING HEALTHCARE: DIGITAL INNOVATIONS IN INDIA’S HEALTH SECTOR
Digital India is a flagship programme of the Government of India with a vision to transform India into a digitally empowered society and knowledge economy. The overall goal is to ensure that digital technologies improve the life of every citizen, expand India’s digital economy, create investment and employment opportunities and create digital technological capabilities in India.

Digital India has considerably reduced the distance between the Government and citizens. It has also helped in the delivery of substantial services directly to the beneficiaries in a transparent and corruption-free manner. In the process, India has emerged as one of the preeminent nations of the world to use technology to transform the lives of its citizens.

Digital India programme has brought tremendous changes in the health care sector of India. Initiatives like Ayushman Bharat Digital Mission, CoWIN App, Aarogya Setu, e-Sanjeevani, eHospital have made health care facilities and services reach every corner of India. These initiatives bridge the existing gap among different stakeholders of the healthcare ecosystem through digital highways.

Business Strengths

1. Strong Geographical Presence in Uttarakhand
Extensive network across 19 tier-two cities and towns, ensuring accessibility to high-quality diagnostic services. Twelve centers strategically located near major medical institutions and commercial hubs enhance patient convenience and service efficiency.

2. Integrated Diagnostics Provider
A one-stop solution offering 1,496 tests, including 481 routine pathology tests, 1,015 specialized pathology tests, and 545 radiology tests. Radiology facilities include 11 CT scanners and 4 MRI machines. Revenue distribution (as of December 2024): 47.00% from product sales, 34.22% from pathology services, and 18.77% from radiology services.

3. Proven Financial Performance: 
Consistent revenue growth:

₹11,956.35 lakh in Fiscal 2022
₹13,688.94 lakh in Fiscal 2023
₹17,659.01 lakh in Fiscal 2024
₹16,747.47 lakh (April–December 2024)
Strong focus on sales, efficiency, and productivity improvements ensures sustained profitability.

4. Experienced Leadership Team
Led by seasoned professionals with extensive industry expertise, driving growth and operational efficiency in the rapidly evolving Indian diagnostic market

Business Strategies

1. Expansion in Core Geography – Uttar Pradesh
Strengthening presence in urban and suburban regions of Uttar Pradesh, with planned expansion into Ayodhya, Ashiyana, and Jankipuram to leverage existing brand equity and enhance market reach.

2. Customer-Centric Service Enhancement
Expanding diagnostic services with preventive and wellness offerings, including genetics, molecular diagnostics, oncology testing, and chronic disease management. Tailored healthcare screenings for individuals and corporate clients to address rising health awareness and lifestyle-related diseases.

3. Revenue Growth Through B2B and Corporate Partnerships
Expanding the B2B segment by targeting institutional clients, public sector undertakings, and corporate entities. Leveraging partnerships and referrals to diversify revenue streams and strengthen brand presence.

4. Technology-Driven Customer Experience
Enhancing diagnostic services through ERP systems, cloud-based solutions, artificial intelligence, and machine learning to provide a seamless, integrated digital experience for customers.

Business Risk Factors and Concerns

1. Dependence on Flagship Diagnostic Center
Any interruptions at the flagship diagnostic center in Jankipuram, Lucknow, which serves as the primary hub for processing tests, could adversely impact operations, revenue, and financial stability. This center handles a significant portion of diagnostic requests from walk-in patients and networked centers.

2. Revenue Concentration and Lack of Long-Term Contracts
A significant portion of revenue is dependent on B2C customers and select clients, with no long-term contractual agreements. Disruptions in these relationships could negatively impact business performance. The company also generates revenue through the sale of consumables like X-ray films and lab reagents, primarily via Chandan Pharmacy Limited.

3. Regional Market Concentration
Operations are heavily concentrated in Uttar Pradesh and Uttarakhand, covering 23+ cities in Uttar Pradesh and 19+ cities in Uttarakhand. Any decline in business within these regions could significantly impact financial performance.

4. Reliance on Pathology and Radiology Services
Pathology and radiology contribute 52.99% of revenue in FY 2024, with similar trends in previous years. Increased competition and pricing pressures in these core services could lead to revenue decline, affecting financial stability.

5. Dependence on Group Company
A substantial portion of revenue is linked to Chandan Hospital Limited, accounting for 29.07% (Dec 2024), 33.68% (FY 2024), 36.08% (FY 2023), and 30.06% (FY 2022) of total revenue. Changes in its business scale, financial health, or strategic focus could pose a risk to revenue sustainability.

Chandan Healthcare Company faces key risks related to its dependence on a single flagship diagnostic center, revenue concentration in B2C clients and group company Chandan Hospital Limited, and regional market limitations in Uttar Pradesh and Uttarakhand. Additionally, reliance on pathology and radiology services exposes the company to competition and pricing pressures. The absence of long-term contracts with major clients further increases financial uncertainty.