With the government and citizens becoming serious about healthcare, the sector is poised to grow at double CAGR in the next 10 years, said A Velumani, CMD & CEO of Thyrocare Technologies on Wednesday.
“Today man is concerned about his health more than any time in the past. For the last 6 months government also is serious about healthcare and the common man is also serious about healthcare. So, next 10 years, healthcare will have double the CAGR it had in the last 10 years,” he told CNBC-TV18
The healthcare industry is more about volumes and those who charge less make lots of profit, he said. The margins have not eroded despite health tests prices coming down as raw material costs have also come down, Velumani added.
“In healthcare, the volumes compensate for the profit, not the price. So those who charge too much, hardly have any profit, but those who charge less, have lots of profit. All raw material costs have also gone down. The raw material, I paid first test Rs 1,400 and today it is less than Rs 400. So, there is no marginal erosion in this extra growth.”
On coronavirus tests, Velumani said that 70 percent of the total COVID-19 tests are rapid antigen tests.
“RT-PCR suffered a lot because of the rapid antigen test which has suddenly occupied the center stage. As of today, 70 percent of the total COVID tests are rapid antigen tests and that is not our domain and that is not our cup of tea. So, it is very difficult for us to see how things will move,” he told CNBC-TV18.
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