Spend less to grow more? How Thyrocare founder Velumani did it

Any business seeking success often follows a predictable script: raise capital, spend rapidly and expand quickly. Dr Arokiaswamy Velumani, however, followed a different playbook. Born into a humble family in Tamil Nadu, he rose from a government research job to becoming the founder of Thyrocare, a diagnostics giant that disrupted the industry, not by raising funds, but by spending less. Relentless cost-cutting, sharp technological bets, and an almost militant focus on frugality led to Thyrocare growing 20 per cent annually from FY08 to FY21, with an enviable average operating margin of 36 per cent—all without taking a single loan. Velumani strategy is a masterclass in building a business that thrives on financial discipline. In a lecture, he shared what went into building Thyrocare, one frugal decision at a time. We break down his insights below: Frugality: The secret weapon of success "Success is not about how much money you make; it's about how little money you can live with," says Velumani. For him, frugality isn't just a strategy but a bedrock of a sustainable business. Unlike most businesses that spend heavily on hiring, Thyrocare kept employee costs at just 11 per cent of revenue, compared to the industry average of 25 per cent. Velumani did it by hiring freshers. Over the years, he employed over 25,000 first-time job seekers. His hiring policy not only saved costs but also earned him loyalty. "When you h

This article was originally published on February 04, 2025.