Fortis gets a new name in PARKWAY, to dissassociate with former promoters controversy
'Parkway' is a well renowned and internationally acclaimed brand in the field of healthcare, belonging to the IHH Group, the ultimate parent of Northern TK Venture Pte Ltd.
Northern TK Venture is the promoter of the company with 31 per cent shareholding, Fortis Healthcare said.
"The rebranding decision was taken as the current brand licence agreements expire in April/May 2021, and most importantly to reinforce the complete disassociation of the company from its erstwhile promoters," Fortis Healthcare said in a filing to BSE.
Singh brothers were the promoters of Fortis Healthcare.
Subject to requisite approvals and directions from the Supreme Court 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, it added.
"As part of its commercial strategy, the company intends to, going forward, obtain a licence to use the brand 'Parkway' as the corporate name, brand and logo of the company and all its subsidiaries in relation to the hospital business," it added.
Separately, SRL Ltd 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, Fortis Healthcare 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," Fortis Healthcare Chairman Ravi Rajagopal said.
Fortis Healthcare's association with IHH is a significant alliance in the healthcare industry in India.The company will work with all relevant authorities to ensure a smooth transition of the brand, he added.
Fortis Healthcare MD and CEO Ashutosh Raghuvanshi said: "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."
IHH Healthcare MD and CEO Kelvin Loh Chi-Keon said the 'Parkway' brand is synonymous with excellence in patient-centred quality care in Asia.
"By rebranding the Fortis group of hospitals with Parkway, one of our group's leading brands, IHH Healthcare reinforces its commitment to Fortis and to India's healthcare industry," Loh Chi-Keon said.