Mukesh Ambani sets eyes on Fortis
After its high-voltage entry into wireless broadband and the expected debut into power generation, the biggest surprise to come from Reliance Industries (RIL) could be its foray into healthcare.
Tweet-- After its high-voltage entry into wireless broadband and the expected debut into power generation, the biggest surprise to come from Reliance Industries (RIL) could be its foray into healthcare. While the final contours are yet to be drawn up, the prevailing thinking in the management is in favour of entering the tertiary healthcare market by acquiring a stake in one of the domestic corporate hospital chains. What may come as a bigger surprise is that the company has sent feelers to brothers Malvinder and Shivinder Singh, promoters of Fortis Healthcare, the country's second-largest hospital chain. The Singh brothers are currently locked in a takeover battle with Malaysia's Khazanah for control of Singapore hospital chain Parkway Holdings.
According to industry sources, Mukesh Ambani could be looking at buying around 26% stake in Fortis. The RIL overtures have not gone completely unanswered, since top officials of both companies are understood to have met once to discuss the prospects of such a proposal.
Sources said while RIL is evaluating the scope of buying a stake in an existing hospital chain, it has not ruled out the greenfield route. It is also separately considering expansion of its concept stores branded Reliance Wellness to several cities. Reliance Wellness, which stocks a range of health products, is housed under the Reliance Retail umbrella. It has branches of this format in Bangalore, Hyderabad and Ahmedabad among others.
RIL already has some presence in the pharma sector through Reliance Life Sciences; however, the plans for its foray into hospital business are being chalked out separately.
Notes to Editor
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 44 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.