Metropolis Healthcare expands northern footprint with ₹35 crore acquisition in Uttarakhand

As part of its plan to strengthen operations in North India, Metropolis Healthcare Limited has acquired Dr. Ahujas’ Pathology and Imaging Centre, a diagnostics network based in Uttarakhand, for ₹35.01 crore in an all-cash deal.

The acquisition, routed through its wholly owned subsidiary Metropolis Histoxpert Digital Services Private Limited, aligns with the company’s ongoing ‘String of Pearls’ strategy — an approach aimed at acquiring regional diagnostics businesses to establish a wider national footprint while maintaining clinical quality and patient trust.

“Dr. Ahujas’ Pathology and Imaging Centre has a strong business-to-consumer foundation and a reputation for quality, which aligns with our philosophy,” said Ameera Shah, Promoter and Executive Chairperson of Metropolis Healthcare. “Together with our earlier acquisitions — Core Diagnostics and Scientific Pathology — this acquisition strengthens our presence in North India, where we continue to build scale.”

While Metropolis has long had a more established presence in western and southern India, it is now sharpening its focus on northern states, including Uttar Pradesh and Uttarakhand. In Dehradun, the company already operates a laboratory and six patient service centres. The acquisition adds to this network with two laboratories accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL) and the National Accreditation Board for Hospitals and Healthcare Providers (NABH), 11 collection centres, and nine hospital-based centres.

Founded in 1990 by Dr Alok Ahuja and Dr Alka Ahuja, Dr Ahujas’ Pathology and Imaging Centre derives 80 per cent of its revenue from walk-in patients. Pathology contributes around 73 per cent and radiology 27 per cent to its projected ₹11.5 crore revenue for the financial year 2024–25. Its local reputation for scientific accuracy and patient trust made it a suitable addition to Metropolis’s portfolio.

“Uttarakhand is a developing diagnostics market in the North, estimated to be worth ₹500 crore,” said Surendran Chemmenkotil, Chief Executive Officer of Metropolis Healthcare. “This acquisition enables us to expand our coverage across the state and deepen our engagement with healthcare providers and patients. We intend to adopt a hybrid growth approach, combining company-owned and franchisee-led centres.”

This transaction follows earlier acquisitions of Gurugram-based Core Diagnostics, which offers specialised oncology and genomics testing, and Agra-based Scientific Pathology. These acquisitions are part of Metropolis’s broader strategy to enter markets where its brand is still growing.

“We did not just enter Uttar Pradesh through Scientific Pathology,” said Shah. “We have also set up eight of our own laboratories in the state. Now, with the Dehradun acquisition, our presence in Uttarakhand is no longer just symbolic.”

The company plans to expand further into towns like Haridwar, Rishikesh, and Roorkee, while continuing to scale across Uttar Pradesh. As a result of these efforts, North India’s contribution to Metropolis’s overall revenue has risen from 8 per cent to an estimated 14–15 per cent. “We see the region as an important part of our growth journey,” Shah said.

The transaction is expected to close within 45 days. Metropolis anticipates a payback period of six to seven years, having paid 12-times earnings before interest, taxes, depreciation, and amortisation (EBITDA) multiple for the business. “We aim to accelerate growth using our network, systems, and clinical infrastructure,” Shah noted.

While Dr. Ahujas’ Pathology and Imaging Centre has historically grown at 8–10 per cent annually, Metropolis plans to scale this up by introducing its full range of over 4,000 diagnostic tests and tapping into cross-selling opportunities. The brand will continue to operate locally, with patients gaining access to an expanded range of advanced diagnostics, including cancer and genomics testing.

“Living in a smaller town should not mean limited access to quality diagnostics,” Shah said.

Metropolis also plans to retain the leadership of Dr. Alok and Dr. Alka Ahuja to ensure business continuity. “Our integration model respects local strengths while introducing operational efficiencies,” Shah added.

North India presents some cost-related challenges due to price sensitivity, but Shah pointed out that this is often offset by lower input costs. “Test pricing may be lower than in metropolitan cities, but so are rents and salaries, which helps us maintain margins.”

She also noted that for high-end tests, patient decisions are typically based on trust and quality rather than price. “Both Dr. Ahujas’ Pathology and Imaging Centre and Scientific Pathology are built on strong trust with their communities.”

Looking ahead, Metropolis plans to direct a significant portion of its profits — about 50-60 percent of pre-tax cash — towards acquiring high-quality regional diagnostics firms. The company is currently evaluating more opportunities in Tier-2 and Tier-3 cities where it sees strong potential but limited current presence, Shah said.