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Ansh Kadam
Founder & CEO at Bui... • 24d
Here’s why Dr. Velumani is more of a business genius than just a diagnostics founder. He went from sleeping on railway platforms to building Thyrocare, which he sold for Rs. 4,500 Cr. — a diagnostics empire built on razor-sharp strategy. But how did a scientist manage to dominate an industry that was already filled with big players? Well, it’s a masterclass in cost-cutting, distribution, and scaling — all rolled into one. Dr. Velumani, a PhD scientist, knew how to create thyroid testing chemicals for Rs. 30, while others were importing the same for Rs. 150. This gave him the confidence to launch Thyrocare in 1996 and slash test prices from Rs. 500 to Rs. 250 — instantly undercutting the market. But that’s not where the real magic happened. Instead of spending heavily on setting up regional labs like others, he flipped the model — building a massive centralized lab in Navi Mumbai, and flying in samples from across India overnight. This made him a logistics powerhouse in diagnostics, allowing tight quality control and unbeatable cost efficiency. He didn’t stop there. He offered franchisees a 60% commission instead of the typical 30%, attracting hundreds of partners across the country. With centralized operations + a strong distribution network + economies of scale, he built a moat so deep that no competitor could match his price or profit margins. That’s why he didn’t just sell tests — he sold a system. 👉 Actionable Takeaway: If you're building a business, don’t just ask “How can I be better?” — ask “How can I be 10x more efficient?”. ✅ Centralize what you can. ✅ Share margins to grow distribution. ✅ Own your supply chain if possible. Efficiency isn’t a side strategy. It’s the main game. And for more real, battle-tested business insights like this — 🔗 Subscribe to our newsletter from the link in the comments.
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