Mumbai-based Metropolis Health Services, a leading chain of referral laboratories, is targeting Gulf countries for a major expansion with an investment of Rs.500 million ($11.35 million).

"We have recently tied up with Gulf Medical College Hospital and Research Centre at Ajman in the United Arab Emirates (UAE) and are planning to set up a technologically sound referral lab in Dubai," said Sushil Shah, the Metropolis chairperson.

"The Dubai lab will be a hub for modern tests and will connect the rest of the Gulf countries via satellites and collection centres. It will provide more than 1,000 tests facilities to people in that region," Shah told.

"We have also tied up with a large company with a few hospitals under its umbrella in Dubai. Once our partner's hospitals are ready, Metropolis will manage their labs," he said.

The company is also tying up with a leading private hospital in Bahrain, the Al-Hayat Hospital. "We will provide all facilities to the hospital lab and will get referrals for diagnosis and clinical trials."

Shah said Metropolis was in the process of placing orders for equipment and would recruit the staff at Bahrain soon with the hope of starting operations from December. The Dubai lab is slated to begin work from January 2006.

"Once our Dubai and Bahrain labs are up, we will start negotiating for contracts in other parts of the Middle East. Over the next three years, we will have six labs across the region with 100-150 collection centres," Shah said.

"We believe that the samples that are currently going to German and French labs can be processed within the territory at a comparatively economical rate, while maintaining international standard of quality."

Apart from its expansion in the Gulf region, the company is also spreading its wings in India and Sri Lanka, apart from Malaysia and the Seychelles. In Sri Lanka Metropolis recently tied up with a private player, Nawaloka Hospital.

"Metropolis has also decided to add five more laboratories to its existing 10 in India and by December 2006 these labs will start functioning from West Bengal, Andhra Pradesh and Kerala," Shah said.

The Indian laboratory major earned revenues of Rs.400 million last year and is targeting Rs.700 million this fiscal.