IHH plans to rebrand Fortis as ‘Parkway’ to distance agency from Singh brothers


The Fortis Healthcare Ltd board on Friday gave an in-principal approval to its Malaysia-based promoter IHH Healthcare Berhad’s proposal to rebrand the hospital enterprise as Parkway, and the SRL Diagnostics enterprise beneath a impartial identify. The transfer is a part of the Fortis administration’s effort of over two years to distance itself from its embattled former homeowners Malvinder and Shivinder Singh.

“That is the fruits of the intensive overhaul and strengthening of the governance processes initiated by the reconstituted board in 2018 and is a reinforcement of our efforts to utterly disassociate ourselves from the erstwhile promoters of the corporate,” Fortis Healthcare chairman Ravi Rajagopal mentioned.

Fortis plans to get a licence to make use of Parkway as the company identify, model and emblem for all its subsidiaries within the hospital enterprise. The rebranding will result in discontinuation of the Fortis, SRL and La Femme manufacturers.

SRL will develop a brand new impartial model identify and emblem, which is unrelated to the IHH Group and the Fortis model, to be used within the diagnostics enterprise. The rebranding train is topic to approvals and instructions from the Supreme Courtroom, and on receipt of all company and different approvals, the corporate mentioned. The diagnostics enterprise was requested to develop its personal model identify as a result of the operations are utterly completely different to Parkway’s personal enterprise, Fortis managing director and chief government officer Ashutosh Raghuvanshi mentioned.

Nonetheless, Raghuvanshi didn’t present particulars of the royalty paid to the Singh brothers for utilizing the model Fortis, as there’s a authorized dispute over it, however mentioned that the take care of IHH will come on considerably higher phrases.

The corporate can be making ready a contingency plan in case it’s unable to transition to the brand new model settlement by Could, when the pact for Fortis and SRL manufacturers expire, he added.

Fortis on Friday posted a consolidated internet lack of 179 crore, towards a revenue of 68 crore within the corresponding quarter of final yr, because it was hit by the covid-19 pandemic-related lockdown.

The Parkway model is owned by IHH Healthcare, a gaggle that operates greater than 15,000 licensed beds in 78 hospitals throughout 10 international locations worldwide, and is Asia’s largest built-in non-public healthcare supplier. In India, the group doesn’t run hospitals beneath the Parkway model, however there are three in Singapore.

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