Fortis Healthcare's board has given an in-principle nod to rebrand the company and its subsidiaries to "Parkway." Its SRL diagnostics business will also be under a neutral name. This has been done following continuous efforts that lasted for over two years to distance itself from its embattled former owners, Malvinder and Shivinder Singh.
"Parkway" belonging to Malaysia-based IHH Group, is a well renowned and internationally acclaimed brand in healthcare.
What is the reason?
According to Fortis Healthcare, Northern TK Venture with 31 percent shareholding is the promoter of the company.
Fortis Healthcare said in a filing to BSE that as the current brand license agreement expires in April/May 2021, the rebranding decision was taken. The prime reason however was to disassociate itself from the erstwhile promoters.
Singh brothers were the promoters of Fortis Healthcare.
The company said that rebranding is subject to requisite approvals and directions from the Supreme Court and receipt of all requisite corporate and other approvals as may be required.
License to use the name 'Parkway'
The company intends to get a license to use the brand 'Parkway' as its corporate name.
SRL Ltd also intends to develop brand and logo, unrelated to the IHH Group and the Fortis brand.
Fortis Healthcare Chairman Ravi Rajagopal said that this step is the result of the broad revamp and growth of the governance processes that were initiated in 2018 by the reconstituted Board.
The tie-up of Fortis Healthcare with IHH is an important coalition in India's healthcare industry. For a smooth transition of the brand, the company will work with all relevant authorities.
Fortis Healthcare MD and CEO Ashutosh Raghuvanshi stated that in order to grow the organization further, IHH's expertise will be harnessed.
IHH Healthcare MD and CEO Kelvin Loh Chi-Keon said excellence in healthcare and patient care is the second name of the "Parkway" brand.
The rebranding of the Fortis group and the coalition of IHH with Fortis will lead to enhanced healthcare expertise in India.