A twist of fate and failing eyesight made Dr Arvind Lal of Dr Lal Path Labs one of the leading medical entrepreneurs in India

In 1949, after struggling for years as a pathologist in government labs, my father set up a laboratory in the heart of Delhi. And thus began my medical entrepreneurship. However, it took several years to build that single laboratory into the chain known as Dr Lal Path Labs (LPL). I followed in my father’s footsteps, and enrolled in the Armed Forces Medical College, Pune. After my father’s death in 1977, I returned to take over the lab. It was his pride and achievement and I couldn’t let his hard work go waste. At that time the industry was in a bad shape. The good thing was that LPL was a witness to the effect that pathological testing had on clinical treatment in India, and in a position to take advantage of it. Also, some medical advancement turned the tide in my favour. In the ’70s I hadn’t heard the word “franchising”. So it was a tough struggle to get space to start a collection centre. People were afraid that we would never leave and that their grandchildren would be fighting to get my grandchildren off the premises. In 1982, I set up my first collection centre at home. And we sort of cracked the code and never had to look back. Another experiment that proved good was using thermocol boxes with gel packs and perforated sponges to transport samples of blood from across the country to our centralised labs in Delhi. At first my finance team shot down the boxes, saying they were too expensive. However, I stuck to my guns. I have always been uncompromising where quality is concerned. In the mid-’90s there was a moment of epiphany: I realised that I had to stop thinking like a doctor and think in terms of business. I also realised that I knew neither about finance nor about marketing and had to find someone who did. But MBAs were not interested in joining an unglamourous industry like mine. So, I opted for CAs who asked me the right questions. I felt at the time that I had taken the right decision, and time has proved me right. Slowly, we began building a brand. By 1995, we were beginning to be recognised. We also struck a partnership with Quest Diagnostics Incorporated, the world’s largest chain of diagnostic labs. I wasn’t ready to give up the majority stake in my business, so I settled for a joint venture, which enabled me to send off samples to US labs. A decade later, we also entered into another partnership — Sequoia (formerly known as WestBridge Capital Partners) decided to invest in us. Today, it owns around 30 per cent stake in LPL. We introduced quite a few firsts in the country. I can justifiably say that any innovation seen in pathology was brought into the country by LPL. If you ask me, we are the Supreme Court of testing in India. Patients often come to us for reconfirmation of tests done at other labs. Today, from handling 30 patients a day in my father’s lab, Dr Lal Path Labs has mushroomed into 45 labs across the country. The labs are visited by 12,000 patients every day. Its touch points include 750 collection centres and 2,500 pick-up points in India. In 2010, it inaugurated Asia’s largest laboratory at Rohini in West Delhi. My father would have been proud. In the past five years, LPL’s profits have grown five times. In 2011, the company turnover has grown more than four times over and it is a combined effort for which I must give my team the credit.

I Wish I Could...

From planes to path labs, it’s been a curious journey for Dr Arvind Lal, owner of India’s leading chain of pathology laboratories, Dr Lal Path Labs (LPL). Growing up in the sixties, young Lal dreamt of landing planes on moving airstrips. “I wasn’t meant to be a doctor. I was supposed to join the navy and become a fighter pilot,” says Lal. He opted for geometric design over biology in school because someone said it helped pilots “steer planes on to the ship”. However, fighter-jet dreams soon crashed owing to failing eyesight. Instead, young Lal took the one decision that made him come a step closer to becoming Dr Lal, a name that’s synonymous with pathology labs across India. Lal picked up a degree from the Armed Forces Medical College, Pune. Though he did get to become one of the biggest names among medical entrepreneurs, within him there’s still the boy who adores anything that flies. “I can recognise just about any fighter plane in the world.” And yes, if he can’t fly them, he chooses to capture them on camera and keep them in his Gurgaon office. The table behind his desk holds a collection of miniature planes of various designs and sizes. On the wall in front hangs a huge framed picture of five Suryakirans performing an acrobatic combination at an armed forces parade. “That picture was taken by me,” informs the 61-year-old with a hint of pride. Today, the Padma Shree awardee is also an honorary Brigadier of the Armed Forces Medical Services.