BANKING FOR GOOD HEALTH

Stem cell banking has emerged as one of the most lucrative business opportunities in the healthcare sector, especially in emerging economies like India. It also proves to be a fertile investment, offering a low-cost but profitable business model.

Opening a stem cell bank franchise calls for an investment as low as Rs 60,000 to Rs 80,000, which involves just 200- 300 sq. feet area and deep refrigerators. Many of the stem cell banking brands demand a refundable security deposit of Rs 1 lakh. The manpower requirement for a basic setup includes one technical person and one or two sales people, which accounts for approximately Rs 50,000 for salaries. While the brands charge Rs 50,000 to Rs 70,000 to harvest the cord blood for about 21 years, the franchisee gets roughly 10-12% per enrolment. For a decent business, a franchise is expected to get 20 to 100 enrolments per month.

MARKET PLAYERS

There are close to 15 stem cell companies in India, including Life Cell, Jeevan Stem Cell, Cryoviva, Cordlife India, Million Cells, ReeLabs and Cryovault. As per market estimates, Life Cell commands around 60% share of the market in India. Private stem cell bankers across India add more than 50,000 clients every year. As a result, the industry is setting itself a target of going from two per 1,000 to five per 1,000 babies over the next 2-3 years using aggressive awareness campaigns.

THE FRANCHISE

Many of the stem cell banking brands are offering interesting business propositions to grab partners. One such brand is ReeLabs, part of the Stem Cell Society of India (SCSI). “We are the only company in India offering stem cell separation and storage from 10 different biological sources available during birthing or otherwise,” shares Dr. Abhijit Bopardikar, Director, ReeLabs. “Currently, we offer three franchisee programs – Freedom, Star and Master – based on the resources of the interested party.”

FRANCHISE SUPPORT

Typically the franchisors prefer franchisees with medical background, especially gynaecology and paediatrics. In many cases, franchisors also partner with individuals or organisations having excellent connections with popular hospitals, nursing homes, diagnostic centres, and gynaecologists. In terms of support, brands offer comprehensive training to the technical and sales team. “Besides, we take care of the marketing through digital mediums, BTL activities as well as hospital tie-ups. While we collect samples from over 200 centres in India, the samples are cryo-preserved at our centres in Chennai and Gurgaon for over 20 years,” says a LifeCell Franchise Lead.

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