Vijaya Diagnostic Franchise: Full Business Model Explained

Are you thinking of starting a business in the medical field? A diagnostic franchise might be one of the best options if you've ever considered entering India's rapidly expanding healthcare sector. Vijaya Diagnostic Centre stands out as a reputable and well-known name among the major players in this market. If you are keen to partner with this thriving business, it is important to understand its business model. In this article, we will discuss the franchise model Vijaya Diagnostic offers and how it works.

Disclaimer: As of 30th April 2025, Franchise India is not providing the Kwality Walls Ice Cream franchise. However, we may include it in our list soon. If you wish to get it anytime in the future, do read this blog to get the detailed analysis.

Vijaya Diagnostic Centre: An Overview

In the fourth quarter of 2024–2025, Vijaya Diagnostic Centre Ltd.'s revenue increased 12.83% over the same time the previous year to ₹178.79Cr. Vijaya Diagnostic Centre (VDC), established in 1981 by Dr. S. Surendranath Reddy, has expanded to become one of the most comprehensive diagnostic chains in India. With more than 40 years of expertise, they have made a name for themselves, especially in South India, by providing a wide range of radiology and pathology services.

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They are well-established, with more than 160 diagnostic clinics and more than 15 NABL-accredited labs dispersed over more than 25 cities in 6 Indian states as of May 2025. Even though Vijaya Diagnostic has mostly concentrated on centers that are owned and run by the company, anyone looking at chances in the diagnostic industry must understand their basic business model. Instead of using a conventional franchise strategy, Vijaya Diagnostic mostly uses a "hub and spoke" approach with company-owned locations.

Why Choose Vijaya Diagnostic Franchise?

Vijaya Diagnostic makes it convenient for both physicians and patients by delivering pathology and radiology services under one roof. One important differentiator is this integrated strategy.

• Quality Focus: With NABL-certified labs spread throughout their network, they place a strong emphasis on testing accuracy and quality. Additionally, they have a robust in-house group of skilled radiologists and pathologists.
• Strong Brand Reputation: Over the years, Vijaya Diagnostic has established a solid reputation for providing dependable and high-quality diagnostic services, especially in Telangana and Andhra Pradesh.
• Business-to-Consumer (B2C) Focus: A sizable amount of their revenue is derived directly from individual clients, which frequently results in increased profitability and client loyalty.
• Effective Network: With specialized and costly equipment centralized in the hubs, the hub and spoke model enables effective resource utilization and cost control.

Vijaya Diagnostic's Core Business Model

Vijaya Diagnostic uses a strong "hub and spoke" approach to grow and provide services. This model includes:

• Hubs: These are large, well-located diagnostic facilities that are fully functional and furnished with cutting-edge radiological tools like CT and MRI scanners, as well as extensive pathology labs that can handle a variety of tests. Additionally, hubs serve as locations where samples from spoke centers are collected.

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• Spokes: These are tiny facilities that provide basic radiological services, including X-rays, ECGs, and ultrasounds, and are mostly focused on collecting samples for pathology tests. After being gathered at spoke centers, the samples are taken to the closest hub for processing and examination.

Business Models Offered

In general, Vijaya Diagnostic provides two types of franchise agreements:

1. Collection Centre Franchise (CCF)

The low-investment model is this one. Samples are gathered and sent to the closest central laboratory.

• Space Required: 200–300 sq. ft
• Employees: 1-2 receptionists and phlebotomists
• Perfect For: residential colonies, Tier 2/3 towns
• Investment: ₹8–12 lakhs

2. Diagnostic Centre Franchise

This model offers more extensive services, radiological equipment, and on-site services.

• Space Required: 1000–1500 sq. ft
• Employees: Lab technicians, radiologists, pathologists, and front desk personnel
• Perfect For: Commercial zones and urban locations
• Investment: ₹50 lakhs to ₹1 crore, depending on equipment and setup.

Investment & ROI Breakdown

Vijaya Diagnostic Franchise – Step-by-Step Guide

The process of applying for a Vijaya Diagnostic Center franchise includes multiple steps, from early research to fully operationalized operations. The entire procedure can be read out step-by-step here, so you know exactly what to expect.

Submit Initial Inquiry

A formal indication of interest starts the journey. Potential franchisees can complete a basic franchise inquiry form on the Vijaya Diagnostic Center's official website. Personal information, chosen location, franchise model (Collection Center or Diagnostic Center), and a brief business history are usually requested on this form. Following submission, the application is examined by Vijaya Diagnostic’s business development team to determine the candidate's potential and brand fit.

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Initial Discussion & Screening

A corporate representative, typically a regional franchise manager, gets in touch with the applicant to have an introductory conversation following the initial inquiry. This discussion is essential to understanding the applicant's operational expectations, experience, investment capacity, and knowledge of the healthcare industry. At this point, a Non-Disclosure Agreement (NDA) may be signed by both parties to safeguard proprietary company data. The procedure advances to the site evaluation stage if the first conversation is satisfactory.

Location Assessment & Site Visit

The applicant must provide possible locations for the franchise unit's establishment. To assess elements like accessibility, visibility, proximity to residential areas or hospitals, and local competitors, the Vijaya Diagnostic team thoroughly inspects the location. This evaluation guarantees that the selected site satisfies the strategic and operational requirements set forth by Vijaya Diagnostic. The team may provide different solutions or changes to make the suggested site viable if it has to be adjusted.

Detailed Business Plan

After the site has been validated, the applicant receives a comprehensive proposal from the business development team. An investment estimate, a list of necessary furnishings and equipment, revenue forecasts, an explanation of the anticipated return on investment, and information regarding roles and support on both sides are all included in this document. It is a thorough business plan that aids the franchisee in understanding the venture's operational and financial framework. Candidates are urged to carefully read this and address any questions before moving on to the next stage.

Franchise Agreement Signing

The formal Franchise Agreement is signed once both parties have agreed on the terms and business plan. The scope of the partnership, the length of the franchise term, renewal provisions, brand usage rights, exclusivity (if applicable), performance expectations, and confidentiality restrictions are all described in this formal contract. The franchisee must sign the agreement, pay the franchise fee, and provide necessary documentation, including proof of identification, proof of address, business registration, and documents proving ownership or lease. The setup step starts with this legal regulation.

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Setup, Infrastructure & Training

After the deal is signed, Vijaya Diagnostic offers practical assistance in opening the franchise location. This covers help with branding and signage, equipment sourcing, interior design, and Laboratory Information Management System (LIMS) setup. They also assist in hiring new personnel and provide thorough training to all staff members. Data input, client interaction, hygiene measures, sample collection methods, and internal system use are all covered in the training. Additional instruction on radiology procedures and machine operation is given to diagnostic centers that provide imaging services.

Dry Run & Quality Checks

A dry run is done to make sure everything is functioning properly before going live. This covers personnel operational readiness, quality control methods, system checks, and simulated operations. All technical, logistical, and compliance-related elements are tested and approved by Vijaya Diagnostic's team. After everything is in order, a soft opening is held, and a full-scale grand opening is held after the launch date is decided. To increase foot traffic, marketing initiatives including internet promotions, local advertising, and community involvement are also started during this stage.

Grand Launch & Go-Live

It’s finally time to launch your franchise. Vijaya Diagnostic continues to provide excellent post-launch support once the center becomes operational. This covers routine operational audits, technical assistance, updates on new services or tests, marketing initiatives, and staff refresher training. Franchisees may concentrate on managing the business while preserving service quality and customer happiness due to their united logistical and IT assistance.

Why Vijaya Diagnostic Primarily Uses COCO?

Vijaya Diagnostic's approach has been to use company-owned centers to have a firm grip on service delivery and quality. This strategy fits with their goal of creating a respectable brand that is recognized for efficiency and dependability, particularly in the complex field of diagnostics. They can effectively broaden their reach while keeping central control over processing and advanced diagnostics at the hubs due to their "hub and spoke" design, which uses company-owned spokes.

Wrapping Up

Vijaya Diagnostic is a fantastic choice if you're serious about building a steady, long-term healthcare business with a reliable partner. If you are prepared to recruit a strong operational team or have experience in healthcare, it's great. You gain from their scale, systems, and reputation as a franchisee. Therefore, collaborating with Vijaya Diagnostic Centre could be a wise and socially beneficial business choice if you have the funds, space, and vision.