The Hindu Business Line : Spearheading thyrocare

Determination, hard work and sheer business sense are the essential ingredients for a successful business venture. Dr A. Velumani, Managing Director, Thyrocare Technologies Ltd, proves it beyond doubt. Vidya Subramanian reports.

Dr Velumani at work.

While grazing his landlord's buffaloes, five-year-old A. Velumani in Appanickenpatti Pudur, an obscure village near Coimbatore, decided to join school. Years later, he went on to become the first person to graduate from the village, and then a scientist at the Bhabha Atomic Research Centre (BARC).

After a stint in research on thyroid, he risked his secure job at the Centre, invested his provident fund amount of Rs1 lakh to establish a private lab, testing blood samples for thyroid disorders, in 1996.

Today, he is the Managing Director of Thyrocare Technologies Ltd., the world's largest thyroid testing laboratory, with ISO 9001-2000 certification that boasts of a turnover more than Rs 10 crore, and nearly 340 franchisees all over the country. The company specialises in immunodiagnostics, that is, testing blood samples for thyroid disorders.

"Thyroid disorders are curable by cheap and safe methods of medication," says Dr Velumani. "Even thyroid cancer is not life-threatening. Once the gland is removed and radio-iodine treatment is given, it will ensure that the patient is completely safe and free of cancer."

But due to lack of networking among them, thyroid and other specialised tests were expensively priced, sometimes as high as Rs1,000 to Rs 3,000. The patients also had to wait long for results, even three-four days.

In a competitive market, where thyroid tests were hardly considered important and ridiculously priced, Thyrocare had a lot to work on.

There were apprehensions from certain quarters about such specific lab-testing. "Instead of starting a full-fledged pathology laboratory, conducting all tests and localising the services, I decided to venture into something I was sure of." Having a Ph.D in Thyro Immunodiagnostics, Dr Velumani knew that he was technologically competent and hence could concentrate further on marketing and channelising the operations of his laboratory.

When Thyrocare started operations, it would cost anything between Rs 400 and Rs 800 for a single sample testing. Dr Velumani was not deterred though. "To achieve profits, the only task ahead was to build volumes and this has been achieved by creating a nationwide network of franchisees," recalls Dr Velumani. Within a year of its inception, the company had 25 franchisees.

Dr Velumani realised that franchising was the only way to leverage the laboratory as a brand name. Today, Thyrocare boasts of a spanned network across the country, with 345 franchisee outlets, with the head office in Mumbai and four regional zonal centres and 10 regional centres. According to Dr Velumani, franchising is more than a trademark — it is a whole package. "Thyrocare," he says, "keeps in mind the three parameters: quality, cost and speed."

Transporting specimens or reports are very costly considering courier and air-cargo costs. "Not when you have volumes in hand," says Dr Velumani. At Thyrocare, the cost of collecting a specimen at Adyar, Chennai, at 4 p.m. to reach Santa Cruz, Mumbai, at 11 p.m. by air-cargo would be as little as 30 paise only.

Thyrocare tries to make optimal use of technology. The results of lab tests are then transmitted through e-mail, available at all franchisees ensuring the cost of report delivery as truly low.

"Quality is never an accident; it is always the result of high intention, sincere effort, intelligent direction and skilful execution," says Dr Velumani. Thyrocare uses the technology method of radioimmunoassay, a nobel-prize winning technology developed by Rasolyn and Yallow.

The average day at Thyrocare, Thane, is a complicated scenario: 2,000 specimens, 7,000 investigations, 100 different tests, 20 different instruments for the same and 100 different reagents for utility. With repetitive maintenance, quality of reagents, quality of instruments, manpower and systems are ensured.

Dr Velumani admits that quality could be maintained for a long period of time only by ensuring the goodwill of employees. Thyrocare provides for basic amenities such as shelter and food, thus providing incentives to put up with rising demands. Many of these hundred-odd employees are from Dr Velumani's village. The company has grown at 200 per cent compound growth rate since its inception in 1996, with an annual turnover of around Rs 20 crore. Among other plans, the company has entered into a strategic alliance with Glaxo Wellcome in the manufacturing of "Eltroxin", a medicine for the cure of Thyroid deficiency. In terms of the alliance, Glaxo Wellcome will extensively market the company's processing activities.

The company has also sponsored the setting up of Thyrocare Institute of Medicine Education (TIME), which will impart training in the field of laboratory medicine.

Picture by Shashi Ashiwal

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