This document provides a feasibility report for opening a diagnostic centre that would offer pathology and radiology services. It analyzes the demand potential, required equipment and their costs, technical requirements, suitable location factors, implementation schedule, operating costs and projected revenues. The total capital investment is estimated at Rs. 39 million to be financed via a bank loan. The diagnostic centre is projected to earn a net monthly profit of Rs. 339,000 with an expected annual return of 10.37% on total capital invested.

1. Project Feasibility Report
on
Diagnostic Centre
Prakhar Amule (MT14IND016)
Academic session - 2014-2015
Mechanical Engineering Department
Visvesvaraya National Institute of Technology, Nagpur
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2. Content:
 Introduction
 Demand study
 Instrument study
 Technical Aspects
 Location study
 Implementation schedule
 Financial Aspects
 Project capital cost estimates and source of finance
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3. Introduction
 Diagnostic Centre is a place that offers diagnostic
services to the medical profession or general public.
 Nowadays it is observed that number of patients are
increasing who needs full-fledged diagnostic centre.
 This project basically covers opening of diagnostic
centre which will include Pathology and Radiology.
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4. 4

5. Demand Study
The demand of good and full-fledge Diagnostic
Centre is very high due to the increased in
number of patients and various other diseases.
For any disease or casualty Doctor’s preferred to
go for blood test or radiology report to proper
diagnose the disease and give medicine
according to it.
The number of tests conducted in the last
decade has doubled to over 500 million tests.
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6. In India, technological advancements and
higher efficiency systems are taking the market
to new heights. Use of advanced and cutting-
edge technologies in understanding a disease
has further strengthened the sophistication level
of participants in the sector.
Over the past decade, patient awareness has
increased several fold.
There is almost 25 to 30 percent rise in demand
in the area and with rising need of X-ray tests.
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7. Instruments Study
For Pathology :
Complete Blood Count machine (CBC)
Flow Cytometer
Hematology Analyzer
Biochemistry Analyzer
Urine Analyzer
mixer cyclone
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8. For Radiology:
X-Ray Machine
CT-Scan Machine
Magnetic resonance imaging (MRI) Machine
Ultrasound or Sonography Machine
Tomography
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9. Miscellaneous Raw Material :
Cabinet for 1000 slides
X-ray viewing box
Refrigerator 210 Lit Capacity double door
Microscope
Water Bath
Computer with UPS
Printer
Kirloskar Generator 160KW
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10. Technical Study
For Opening a Diagnostic Laboratories various
norms has to followed.
For getting a license for Diagnostic Centre firstly
we must have a Doctor who is MD in pathology.
For Diagnostic Laboratories we have to register
in Municipal Corporation of particular city.
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11. For Pathology we have to grant permission from
Nursing Home.
For Radiology we have to take permission from
Atomic Energy Regulatory Board (AERB).
We have to Grant Permission from Environment
Pollution Control Board for disposal of waste
material.
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12. Quality Standard :12
SR BIS NO TITLE
1 IS0 9001:2008 FOR DIAGNOSTIC LABORATORY
2 IS0 IEC 15189-2003 FOR QUALITY STANDARD GIVEN BY
National Accreditation Board of
Testing & Calibration
Laboratories(NABL)

13. Location study
Availability of land : Rented area of 500 sq. feet
is required near Lokmat Square area.
Location approach: Good Railway and Airway
facility . Even Connected by State highway.
Transport: Good Public Transport near the
location is easily available.
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14. Water availability
Electricity is easily available throughout 24 hrs.
Others facility likes ATM , Banks , Hospitals and
Refreshment Facility is available near by.
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15. 15

16. Implementation Schedule16

17. Financial Aspect
1. Land and Building:
17
Area Amount:
Hiring Building on
a rent Basis
50000/- per
month

18. 2. Machine & Equipment's:
A. For Pathology18
SR. Machine & Equipment’s Quantity Amounts
1. Complete Blood Count
Machine (CBC)
1 1,50,000
2. Hematology Analyzer 1 4,00,000
3. Biochemistry Analyzer 1 20,00,000
4. Urine Analyzer 1 1,05,000
5. Blood mixer cyclone 4 2,40,000
6. Flow Cytometer 1 10,00,000
7. Electrolyte Analyzer 1 3,50,000
Total 43,00,000
Approx

19. B. For Radiology:
19
SR. Machine & Equipment’s Quantity Amounts
1. X-Ray Machine 1 40,00,000
2. CT-Scan Machine 1 50,00,000
3. Magnetic resonance imaging
(MRI) Machine
1 1,80,00,000
4. Tomography Machine 1 20,00,000
5. Sonography Machine 2 12,00,000
Total 3,02,00,000

20. C. Common Equipment's:
20
SR. Machine & Equipment’s Quantity Amounts
1. Refrigerator 496 Lit Capacity double
door
1 60,000
2. Microscope 4 2,00,000
3. Kirloskar Generator 160kw 1 16,00,000
4. Computer with ups and printer 5 3,50,000
5. Office furniture with tables and
chairs
4,00,000
Total 26,10,000

21. Working capital
1. Staff and Labor:21
Sr. Designation No's Salary (Rs) Amount
1. Doctor (MD Pathology) 1 3,00,000 3,00,000
2. Accounts Officers 1 20,000 20,000
3. Nurses 3 15,000 45,000
4. Skilled Pathologist 3 20,000 60,000
5. Receptionist 2 10,000 20,000
6. Sweeper 1 7,000 7,000
7. Peon/Watchman 2 7,000 14,000
Total 4,66,000
Perquisite @ 20% 93,000
Grand Total 5,60,000

22. 2. Utility:
22
Sr. Utility Rate Total
1. Electricity 50000 kwh @ RS 4
kwh
2,00,000
2. Water 100 K. ltrs. @ Rs. 5/- per
K. ltrs
500
3. Fuel For
Generator
100 litre Fuel @ Rs
50/Litre
5000
Total 2,05,500

23. 3. Raw Material :
23
Sr. Particulars Rate (Rs) Quantity Amount
1. Syringe 5 1200 6,000
2. X-ray Film of
various size
25 400 10,000
3. MRI SCAN FILM 350 150 52,500
4. COTTON 400/KG 10 4,000
5. DETTOL 300/LT 5 1,500
6. HAND SANITLIZER 50 20 1,000
7. MEDICAL
SANITLIZER
2,000
TOTAL 77,000

24. 4. Other Expenses:
24
Sr. Item Amonts
1. Rent 50,000
2. Advertisement & Publicity 3,000
3. Postage & Stationary 3,000
4. Repair & Maintenance 5,000
5. Telephone Bill 2,000
6. Miscellaneous Item 2,000
Total 65,000

25. TOTAL EXPENSES:
 For Machinery And Equipment's:
25
Sr Amounts
1. For Pathology 43,00,000
2. For Radiology 3,02,00,000
3. Common Equipment's 26,10,000
Total 37,110,000
Total Approx. 37,200,000

26. For Working Capital per Months:26
Sr Working Capital (P.M) Amounts
1. Staff 5,60,000
2. Utility 2,05,500
3. Raw Material 77,000
4. Others 65,000
Total 9,07,500
Total Approx. 9,10,000
Total Working Capital for 2 Months : 1,820,000

27. Total Capital Investments:27
Sr Amount
1. Machinery & Equipment's 37,200,000
2. Working Capital for 2 Months 18,20,000
Total 39,020,000
Total Approx. 39,000,000

28. Source of Finance
Bank Name: STATE BANK OF INDIA
PRINCIPLE AMOUNT: 28,950,000
RATE OF INTEREST: 14% PER ANNUM
LOAN TENURE: 12 YEAR
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29. SALES REALIZATION PER MONTH
SR ITEM COST DAILY MONTHLY TOTAL
1. CBC TEST 250 15 450 112,500
2. HAEMOGLOBIN
TEST
150 5 150 22,500
3. WBC COUNT 150 5 150 22,500
4. PLATELETCOUNT 180 5 150 27,000
5. MALERIA FULL 300 1 30 9,000
6. URINE TEST 120 1 30 3,600
7. BLOOD GROUP &
RH FACTOR
100 1 30 3,000
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30. SR. ITEM COST DAILY MONTHLY TOTAL
8. DENGUE PROFILE 800 0/1 15 12,000
9. CHICKUNGUNIA 650 0/1 15 9,750
10. CARDIC TEST 3000 0/1 15 45,000
11. KIDNEY TEST 3000 0/1 15 45,000
12. LIVER TEST 3000 0/1 15 45,000
13. DIABETES 2500 0/1 15 37,500
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31. SR. ITEM COST DAILY MONTHLY TOTAL
14. X-RAY 200 7 210 42,000
15. ULTRA SOUND 700 3 90 63,000
16. CT- SCAN 2500 5 150 375,000
17 MRI SCAN 5000 3 90 450,000
18 MEMOGRAPHY 1200 1 30 36,000
TOTAL 13,60,850
TOTAL
APPROX.
13,60,000
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32. PROFIT PER MONTH EXCLUDING TAX
EXPECTED SALE PER MONTH: 1,360,000
CAPITAL COST PER MONTH : 910,000
NET PROFIT : 450,000
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33. Taxation:
 Income tax calculation: Rs. 100,000/- deduction under section 80(C)
INCOME TAX ACT for capital repayment. Taxable income: Rs.
(450,000*12- 100,000)= Rs. 5,300,000
 Income above Rs. 10,00,000, therefore taxation rate: Rs.
30,000+30% of amount exceeding Rs. 1000,000.
 Amount Exceeding: 4,300,000
 Tax Amount: 30% of 4,300,000 =1,290,000
 Education Cess: 3% of income tax : 38,700
 Total Tax Paid: 1,328,700
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34. PROFIT:
TOTAL ANNUAL PROFIT : 4071,300
MONTHLY PROFIT : 3,39,000
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35. NET PROFIT RATIO:
NPR= 339000 × 100
1580000
= 21.45 %
RATE OF RETURN ON TOTAL CAPITAL INVESTMENT:
= 339000 ×12 × 100
39,200,000
= 10.37%
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36. Name & Address of the Machinery &
Equipment Supplier
 Hospital Supply Company Pvt. Ltd.
279, Rai Bahadur Road,
Kolkata - 700 053 West Bengal, India
 Popular Science Apparatus Workshops Pvt. Ltd.
3724, Opp. Kali Bari Mandir, Ambala Cantt, Harayana
India.
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37. THANK YOU
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