PROJECT AT A GLANCE

Name of Unit : ST JOHNS MEDICAL LAB

Address : Chowka, Chalakudy

: Thrissur District, Kerala – 680721

Nature of Activity : Medical Diagnostic Centre

Constitution : Proprietorship

Cost of Project

Fixed Capital : Rs. 5,80,000.00

Working Capital : Rs. 70,000.00

Total : Rs. 6,50,000.00

Means of Finance

Bank Loan : Rs. 6,00,000.00

Own Fund : Rs. 50,000.00

Total : Rs. 6,50,000.00

INTRODUCTION

The project proposes to engage in the service of medical

diagnostics centre. A diagnostic centre provides a wide scope for detection of

ailments and affords facilities for a detailed medical check-up through

diagnostic procedures. Medical diagnosis has evolved from visual and aural

observation, tasting of body fluids, primitive testing with basic chemicals and

heat to advanced atomic level measurements at present. Medical diagnosis

presents a truer picture of the nature of disease, status of penetration of the

disease, degree of cure and the health of the cellular components of the body.

The Promoter of the project is already running a successful

Medical lab. He is going to install new equipment called ‘Heamatology

Analalyser. This machine is using for counting RBCs, WBCs and Platelets in

the blood.

Medical treatment procedures have become highly dependent on

diagnostic service to provide measured and accurate inputs. Keeping in view the

requirement of evidence based medicine in this era of consumer protection act;

it is not surprising that more than 80% of the medical treatment is dependent on

proper diagnostic inputs.

PROMOTERS AND HIS BACKGROUND

The promoter of the project is Mr. Shajan Kurian Residing at

Thuduparambil House, Chowka, in Thrissur District. He is having experience

of 5 years in the sector of medical Diagnostics. He is running a successful

business ‘ST JOHNS LAB MEDICAL LAB, in Chowka, Chalakudy which is

one of leading Diagnostics center in the locality.

SCOPE OF INDUSTRY

In India, majority (70-80 per cent) of medical treatments are based on

laboratory diagnostic tests, thus making it one of the most promising sectors in

the healthcare industry. In India, the medical diagnostics industry accounts for

almost 10 per cent of the healthcare sector’s revenues.

With the growth in income and health insurance coverage, there is an

increasing demand for better healthcare services among the growing population

of the country. The sector’s growth will be driven by the country’s growing

middle-class, which can afford quality healthcare.

Healthcare diagnostics is growing at the rate of 15-20 per cent per annum.

The major driver is the growing population burden and the dual burden of
chronic lifestyle diseases along with the earlier communicable diseases and the

dependency on diagnostics for all treatments. Medical tourism too has grown

and today, patients from neighboring countries in Asia are coming to India to

receive specialized medical treatment. This has helped in further surge in

demand for high end diagnostics meeting international standards.

In addition to this, the vast difference in costs between Western countries

and India, the country is being seen as the preferred destination for quality

health solutions. This has been reflected by increasing medical tourism. The

Indian diagnostic market is broadly divided into equipment and services. The

service sector is found to be largely unorganized, with a large presence of

players located at the regional or city level. However, a clear and structured

format is being established to have better regulations and proper definition for

the market.

The use of advanced and cutting-edge technologies in understanding a

disease prognosis has further strengthened the sophistication level of

participants in the sector. The need for high-end diagnostic service is dependent

on availability of medical treatment facilities that support such service.

LOCATION OF THE UNIT

The Unit is Located near Govt Hospital, Chowka, Chalakudy, 250 square

feet room which is sufficient to run the unit. There are number of multispecialty

hospitals are situated nearby and the peculiarity of this location good

transportation facility, electricity and telephone facility and is near to

Chalakudy which is one of most developing City in Thrissur district.

COST OF PROJECT

The estimated cost of project is Rs.6,50,000/-It includes the capital

expenditure of Rs. 5,80,000 and the working capital of Rs. 70,000. Details are

given below.

FIXED ASSETS 5,80,000.00

Heamatology Analyser 5,80,000.00

WORKING CAPITAL 70,000.00

TOTAL 6,50,000.00
MEANS OF FINANCE

OWN FUND 50,000.00

LOAN FROM BANK 6,00,000.00

TOTAL 6,50,000.00

MAN POWER REQUIREMENT PER MONTH

TECHNICAL STAFF- 2 20,000.00

MANAGER -SELF -

TOTAL 20,000.00

FINANCIAL VIABILITY

Projected profitability statement for five years is provided. It is prepared based

on following assumptions.

1. For details of Income projections are on a conservative basis.

2. Income is expected to increase constantly.
3. Income Tax on net profit not considered.
4. Various expenses are estimated according to requirement.
5. Interest rate for new term loan is taken as 13.5% PA and the tenure
of loan is 6 years.
 PROJECTED PROFITABILITY STATEMENT
Rs. in Lakhs
Particulars Year I Year II Year III Year IV Year V Year VI

Service Income
20.00 24.00 29.00 35.00 42.00 52.00
Closing Stock
0.60 0.75 1.30 1.80 2.50 2.50
TOTAL
20.60 24.75 30.30 36.80 44.50 54.50

EXPENDITURE

Opening Stock
0.50 0.60 0.75 1.30 1.80 2.50

Consumable Purchase 9.50 11.50 14.50 17.50 21.50 25.80

Salaries and wages 2.40 3.00 3.60 4.20 4.80 6.00

Repair and maintenance 0.13 0.18 0.22 0.35 0.45 0.56

Rent 0.72 0.72 0.90 1.20 1.44 1.44

Taxes and Insurance 0.02 0.02 0.03 0.05 0.07 0.09

Printing and stationary 0.06 0.08 0.11 0.15 0.18 0.23

Telephone charges 0.04 0.05 0.08 0.10 0.13 0.16

Electricity 0.36 0.45 0.60 0.75 0.90 1.13

Advertisement 0.10 0.15 0.20 0.25 0.30 0.38

Commission 0.45 0.60 0.80 1.00 1.20 1.50

Interest and bank charges 0.67 0.85 0.68 0.49 0.28 0.11

Sundry Expenses 0.15 0.20 0.25 0.35 0.50 0.63

Depreciation 1.05 0.93 0.82 0.73 0.66 0.59

TOTAL
16.15 19.33 23.54 28.43 34.21 41.10

Net Profit
4.45 5.42 6.76 8.37 10.29 13.40
CONCLUSION

The project is promoted by successful & experienced personal Mr. Shajan

Kuryan for installing new Equipment in his medical diagnostics lab. The

proposed venture will reward the promoter with good return. By studying the

technical and financial aspects of the project, it can be understood that the

proposed unit can surely find success in its path. So the unit can easily repay

the term loan without any problem. This proposed project is technically feasible

and financially viable and hence it wants favorable consideration by the

financial institution.