Lanka Hospitals to invest Rs. 831 m to expand lab biz

Lanka Hospitals Corporation Plc is planning to invest Rs. 831 million over the next two years to expand its laboratory business.

To undertake this major initiative, the company said the Board of Directors has granted approval for the incorporation of a fully-owned subsidiary. Lanka Hospitals will also seek Board of Investment approval for the subsidiary.

It said Super Religare Laboratories (SRL), a subsidiary of Fortis Healthcare Ltd., will partner Lanka Hospitals in establishing a new network of laboratories across the country.

“The referral lab under this new venture, the largest and the most up to date in the country will obtain College of American Pathologists (CAP) accreditation, the gold standard in terms of quality in laboratory services,” Lanka Hospitals said.

Fortis Healthcare International, a subsidiary of Fortis Healthcare Ltd., is the second largest shareholder of Lanka Hospitals with a stake of 28.6% after Sri Lanka Insurance Corporation, which holds 29.5%.

In the first quarter of 2012, the company posted a net profit of Rs. 78 million, up from Rs. 65 million a year earlier.  Revenue grew from Rs. 890.5 million to Rs. 976 million.

In 2011, revenue amounted to Rs. 3.68 billion, up from Rs. 3.1 billion whilst net profit rose from Rs. 289 million in 2010 to Rs. 423.5 million last year.

Lanka Hospitals Corporation Plc Board comprises of Gotabaya Rajapaksa (Chairman), Dr. Nalaka Godahewa, Prof. Dayasiri Fernando, Dr. T. R. C. Ruberu, A. M. Mohan de Alwis, R. S. Cabraa, Dr. G. W. K. Wickramasinghe, P. A. Lionel, and Dr. N.N.A.P. Bandula Chandranath Wijesiriwardena, whilst from Fortis Group are Malvinder Mohan Singh Director, Shivinder Mohan Singh, Sunil Godhwani, Vishal Bali (Alternate Director to Malvinder Mohan Singh), Balinder Singh Dhillon (Alternate Director to Shivinder Mohan Singh) and Dr. Amit Varma (Alternate Director to Sunil Godhwani).