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The entities who have noted this advantage to name among the other few are Apollo and
Fortis with its cumulative market cap of around $ five billion and may be considered as a
reflection of the healthcare scenario of the present and future of Indian healthcare.
Company Details
Fortis Healthcare International Pte Ltd.
Through its subsidiaries owns and operates hospitals. The company was incorporated in 2010
and is based in Singapore. As of January 10, 2012, Fortis Healthcare International Pte Ltd.
operates as a subsidiary of Fortis Asia Healthcare Pte. Limited .
FORTIS HEALTHCARE (INDIA) LTD
Fortis Healthcare Ltd is one of the largest private healthcare companies in India. The
company is having a network of 28 Hospitals, Satellite Centers and Heart Command Centres
with about 3300 beds capacity. These hospitals include multi-specialty hospitals as well as
super-specialty centers providing tertiary and quaternary healthcare to patients in areas such
as cardiac care, orthopedics, neurosciences, oncology, renal care, gastroenterology and
mother and child care. They are delivering quality healthcare services to our patients in
modern facilities using advanced technology.
Fortis Healthcare Ltd was incorporated on February 28, 1996. The company commenced
their commercial operation by setting up the Fortis Heart Institute and Multi-Speciality
Hospital at Mohali in the year 2001. In December 2002, International Hospital Ltd became a
board controlled subsidiary of the company.
In August 2003, Fortis Hospital in Amristar was inaugurated. In October 2003, the company
executed an agreement with Seth Jessa Ram and Bros Charitable Hospital Trust for the
operation and management of Jessa Ram Hospital, New Delhi and Fortis Hospital in Noida
was commissioned in August 2004.
In September 28, 2005, the company acquired 90% interest in Escorts Heart Institute &
Research Centre Ltd that owns and operates three hospitals in north India and operates a
fourth hospital in collaboration with the Government of Chhattisgarh.
International, owned by the Singh family, to consolidate local and overseas operations.Fortis
Healthcare Managing Director Shivinder Singha member of the founding familysaid that
the company would need to raise funds via debt to finance the acquisition. The combined
entity's post-deal consolidated debt will go up to $1 billion as a result, Mr. Singh said.The
local and overseas entities have been growing through acquisitions and by setting up new
hospitals as demand for health-care services rises.
2004 -Fortis inks deal with Jessa Ram Hospital to takeover the management of the hospital
2005
-Fortis Hospital rolls out Golden Age Club
-Fortis buys Escorts Heart
-Fortis Healthcare signs $33.33m pre-IPO deals
The Company was incorporated on February 28, 1996 as Rancare Limited under the
Companies Act. Subsequently on June 20, 1996 our name was changed to our present nameFortis Healthcare Limited. The Company received the certificate of commencement of
business on July 1, 1996.
2006
-Fortis Healthcare to buy majority stake in Trehan`s Medicity
-Fortis Healthcare signs $33.33m pre-IPO deals
2007
-Fortis HealthWorld has joined hands with US hearing aid maker Starkey for its Audible
range and is looking to soon offer dental services at its Health stores too.
-Colgate-Palmolive India, the market leader in toothpaste in India, declared the acquisition of
three domestic companies in south India recently. The company purchased 75 per cent equity
in Advanced Oral Care Products (Goa), Professional Oral Care Products (Goa) and SS Oral
Hygiene Products (Hyderabad).
-Fortis Healthcare acquires Hiranandani Hospital
2008
-Fortis Healthcare Ltd has informed that the Board of Directors of the Company at its
meeting held on January 23, 2008, inter alia, has approved change in registered office of the
Company from "Piccadily House, 275-276, 4th Floor, Captain Gaur Marg, Srinivas Puri, New
Delhi - 110065" to "Escorts Health Institute And Research Centre, Okhla Road, New Delhi 110025".
2009
-Fortis completes Wockhardt Hospital Acquisition
2013 -"Fortis launches its Flagship Hospital, One of the First of its Kind in Asia Bridges the
gap for expert talent, trans-disciplinary, quaternary care". -"Fortis to divest stake in Quality
Healthcare to Bupa for US$ 355 million Intensifies Focus on Healthcare Delivery in India".
2014 -"Fortis launches state of the art, multi super-specialty hospital in Ludhiana".
Analysis of Deal
Motives for going for deal - Fortis Healthcare Managing Director Shivinder Singha
member of the founding familysaid that the company would need to raise funds via debt to
finance the acquisition. The combined entity's post-deal consolidated debt will go up to $1
billion as a result, Mr. Singh said.
Benefits of deal / Is the deal successful as a Business Strategy? - Shares of the Mumbailisted entity have lost 14% since Sept. 19 when the acquisition was first announced as the
market wasn't convinced by the rationale for the move. But the stock gained 3.6% Tuesday
2016-03-11 to 128.95 rupees ($2.62).
"This deal is possibly aimed at creating a consolidated entity that will be attractive to a
foreign buyer," said Ranjit Kapadia, senior vice president at Mumbai-based Centrum Broking
Pvt. Ltd.
Value Created or Destroyed? - stock gained 3.6% Tuesday 2016-03-11 to 128.95 rupees
($2.62).
INNOVATIVE STRATEGY:
Ranbaxy promoted Fortis Healthcare Limited would continue with its strategy of
entering into Operation and Management (O&M) contracts with owners of existing
and new hospitals apart from expansion by building new hospitals and acquiring
existing hospitals.
Fortis already has such contracts with existing and new hospitals like Jessa Ram
Hospital, Fortis La Femme, Rajan Dhall hospital, Vasant Kunj in New Delhi and
Khyber Medical Institute in Jammu and Kashmir.
The company is also entering into new satellite and heart command centre
arrangements.
CONCLUSION
Fortis Healthcare, India was established in 1996 by the
promoters of Ranbaxy Laboratories, among the world's top 10
generic companies, also India's largest pharma company.
Fortis Healthcare India hospitals are benchmarked to
International standards - achieving quality.
The Fortis Healthcare circle of caring is fast expanding,
spreading the name of Fortis Healthcare.
significantly in the caring approach of our people.
It can be said that Indian environment provides a very good
opportunity for private players in healthcare than other
countries. Growing population with much deeper pockets and
low government participation has lead to higher demands where
people are willing to pay even high cost for proper medical care.
REFERENCES:
Agarwal Anoop, Jaffe. F. Jeffrey, N. Gershon & Mandelkar (1992), Post merger
performance of acquiring firms : A Re-examination of an Anomaly, The Journal of
finance
Alchian, Armen & Harold Demsetz (1972), Production Information cost & economic
organization , American economic review
Asquith, P. and E.H. Kim, 1982, The impact of merger bids on the participating firms'
security holders, Journal of Finance
Bradley Michael Desai Anand, Kim Han E (1987), Synergestic gains from corporate
acquisitions and their division between stock-holders of target and acquiring firm.
Becher D. A. (2000), Valuation effects of Bank mergers, Journal of corporate finance.
http://www.dsij.in/article-details/articleid/5481/fortis-healthcare-will-it-fortify-yourportfolio.aspx
http://www.pbr.co.in/march2014/10.pdf
http://economictimes.indiatimes.com/fortis-healthcareltd/infocompanyhistory/companyid-16648.cms
http://www.businesstoday.in/magazine/features/mergers-subsidiaries-holdingcompanies/story/185854.html
http://www.vccircle.com/news/healthcare-services/2015/05/22/fortis-redeems-fccbsworth-100m-held-singapores-sovereign-fund
SUBMITTED BY
RASHMI KUMARI SAHOO
ROLL NO : 314SM1023