The company said that the decision to rebrand Fortis was taken to disassociate itself from the ex-promoters.
The Board in its meeting held on Friday gave an in-principle approval for the change in the name and branding of the company and its subsidiaries.
“Subject to requisite approvals and directions from the Hon’ble Supreme Court of India and the receipt of all requisite corporate and other approvals as may be required, the company and its subsidiaries propose to, discontinue the use of ‘Fortis’, ‘La Femme’ and ‘SRL’ as part of their corporate name, brand and logo,” the company informed the exchanges on Friday.
The current brand license agreements with Singh Brothers, erstwhile promoters-expire in April-May 2021. “The decision of rebranding was taken most importantly to reinforce the complete dissociation of the company from its erstwhile promoters, the company said in a statement.
‘Parkway’ brand belongs to the IHH group, which operates more than 15,000 licensed beds across 78 hospitals in 10 countries worldwide and is Asia’s largest integrated private healthcare provider.
The company had earlier conducted a brand research which showed a positive response and preference for the ‘Parkway’ brand as compared to a neutral brand or any other brand of IHH Healthcare Berhad (“IHH”), the parent of Northern TK Venture Pte Ltd., the promoter of the company with 31% shareholding.
As part of its commercial strategy, the company intends to obtain a license to use the brand ‘Parkway’ as the corporate name, brand and logo of the company and all its subsidiaries (excluding SRL Limited and its subsidiaries and joint ventures) in relation to the hospital business.
Separately, SRL Limited would seek to develop a new neutral brand name, brand and logo, unrelated to the IHH Group and the Fortis brand, for use in the diagnostics business, it further said.
“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. Our association with IHH is a significant alliance in the healthcare industry in India. We pride ourselves on a culture of serving our patients with care and compassion and the association with IHH would foster that goal. We will work with all relevant authorities to ensure a smooth transition of the brand,”Ravi Rajagopal, Chairman, Fortis Healthcare said in a statement.
Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare, shared that, “We have always seen potential synergies between our company and IHH and look to leverage IHH’s global healthcare expertise to grow our organization further. Our association has come at a point in time when healthcare in India and globally is experiencing a substantial transformation. As a brand, our company has had several facets and we have always believed that we stand for much more. We would like to assure our patients, employees and all key stakeholders that our focus on patient centricity and clinical excellence, along with the quality of our service delivery will only get better with a new brand and identity.”