IHH plans to rebrand Fortis as ‘Parkway’ to distance firm from Singh brothers1 min read . Updated: 14 Aug 2020, 10:00 PM IST
The move is part of Fortis’s effort to distance itself from embattled former owners Malvinder and Shivinder Singh
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 business as Parkway, and the SRL Diagnostics business under a neutral name. The move is part of the Fortis management’s effort of over two years to distance itself from its embattled former owners Malvinder and Shivinder Singh.
“This is the culmination of the extensive overhaul and strengthening of the governance processes initiated by the reconstituted board in 2018 and is a reinforcement of our efforts to completely disassociate ourselves from the erstwhile promoters of the company," Fortis Healthcare chairman Ravi Rajagopal said.
Fortis plans to get a licence to use Parkway as the corporate name, brand and logo for all its subsidiaries in the hospital business. The rebranding will lead to discontinuation of the Fortis, SRL and La Femme brands.
SRL will develop a new neutral brand name and logo, which is unrelated to the IHH Group and the Fortis brand, for use in the diagnostics business. The rebranding exercise is subject to approvals and directions from the Supreme Court, and on receipt of all corporate and other approvals, the company said. The diagnostics business was asked to develop its own brand name because the operations are completely different to Parkway’s own business, Fortis managing director and chief executive officer Ashutosh Raghuvanshi said.
However, Raghuvanshi did not provide details of the royalty paid to the Singh brothers for using the brand Fortis, as there is a legal dispute over it, but said that the deal with IHH will come on significantly better terms.
The company is also preparing a contingency plan in case it is unable to transition to the new brand agreement by May, when the pact for Fortis and SRL brands expire, he added.
Fortis on Friday posted a consolidated net loss of ₹179 crore, against a profit of ₹68 crore in the corresponding quarter of last year, as it was hit by the covid-19 pandemic-related lockdown.
The Parkway brand is owned by IHH Healthcare, a group that operates more than 15,000 licensed beds in 78 hospitals across 10 countries worldwide, and is Asia’s largest integrated private healthcare provider. In India, the group does not run hospitals under the Parkway brand, but there are three in Singapore.