Fortis Healthcare, which had stepped up its international presence with aggressive acquisitions just three years back, is back home with renewed motivation.
A day after announcing the decision to sell Hong Kong-based healthcare chain Quality Healthcare to insurance giant Bupa for $355 million, Malvinder Singh, Executive Chairman, Fortis Healthcare, told Business Line about the company’s future plans and why focusing on India makes sense.
With the exit from Quality Healthcare, Fortis has now sold all three of its big global businesses. “We have intensified our focus on India as we see strong demand for healthcare delivery services in the country over the next many decades,” said Singh. “We have critical mass; a significant talent pool of medical and paramedical professionals and existing infrastructure in the country. This can be rapidly scaled up at marginal incremental expense. We see huge opportunity in India over the next many years.”
Following the latest transaction, the company’s net debt-equity ratio will come down to less than 0.3x, from1.6x as on September 30, 2012.
According to Singh, Fortis’ plan is to concentrate on its hospitals and diagnostics business, while intensifying its focus on India. “We are looking at adding over 1,000 beds in the current year. In May 2013, we launched the company’s flagship hospital, The Fortis Memorial Research Institute. Two more launches, one each in Ludhiana and Chennai, are planned during the latter part of the year,” he said.
Asked about acquisition plans, Singh said: “We see huge potential for organic growth in India, to double our operating bed capacity, and the priority is to make that happen.
“Although there are no specific acquisition plans at the moment, we continue to evaluate fresh opportunities in India for their relevance and strategic fit and will objectively look at them at the right economic price.”