Rs 4 lakh investment built an Rs 7848 crore empire. How a Mumbai man, who once earned Rs 150 a month, built a flourishing diagnostic laboratory chain

Building a business with very little capital if one has the vision and the perseverance. Dr Arokiaswamy Velumani set up a small thyroid testing laboratory in 1996; he had just Rs 4 lakhs in hand - Rs 2 lakh savings and Rs 2 lakh PF. Today, that laboratory has grown into a booming diagnostic and preventive care business, valued at Rs 7848 crore (as per Screener) with annual earnings of Rs 829 crore (as of 2026). Once upon a time, Dr Velumani earned just Rs 150 a month. Taking to LinkedIn, Fitpas co-founder Akshay Verma shared his incredible journey.

Born to a landless farmer in Tamil Nadu, Velumani spent 14 years working at Bhabha Atomic Research Centre (BARC), studying thyroid testing. He eventually quit the stable job to begin his entrepreneurial journey.

Thyrocare was established in Byculla, Mumbai, in 1996. At that time, Dr Velumani revealed in the comments section that he had just Rs 4 lakhs in hand. “2 Lakh savings – that was my seed capital. 2L PF. Amount.” The business aimed to make diagnostic testing more affordable and accessible. He wrote, "That was AVM 1.0 with 4 lakhs: Made it affordable for 30% of the population. Middle class..."


Instead of spending on expensive diagnostic labs in various places, he implemented a centralised strategy that revolutionized the blood-testing industry.

Samples were collected from various cities throughout India and sent to a centralised testing facility for assessment.

Blood samples were transported to Mumbai, with logistics costs ultimately lowered to under ₹5 per specimen.

Simultaneous processing of large test batches enabled more efficient and cost-effective use of expensive diagnostic equipment. This groundbreaking operational framework enabled Thyrocare to grow swiftly.

As of 2009, the company was said to be collecting and receiving 12,000 blood samples daily.

Akshay explained that Dr Velumani did not invent a new test. He just made it more affordable. In a country where many lives are lost due to lack of timely diagnosis of disease, affordable diagnostic services can make a big difference.

Akshay’s post went viral, with many entrepreneurs praising Dr Velumani’s journey. One LinkedIn user explained how entrepreneurs have the misconception that affordable pricing can affect profitability.

“One of the biggest misconceptions in business is that affordable pricing necessarily means compromising profitability. Thyrocare showed how a different cost structure, high volumes and operational discipline can make affordability commercially viable…” she wrote.