Fortis Group promoters Malvinder and Shivinder Singh , who acquired a diagnostic business in Dubai in 2008, plan to scale up the model and expand its presence in the North African region and other geographies of West Asia where it is not present.
This seems to be largely part of the Fortis network?s overall strategy to enter new healthcare verticals by acquiring a regional market leader in a concerned segment in the Asia-Pacific region, understand the strength of the business model and replicate it in new geographies. However, when the Singhs’ had acquired Mena Healthcare, the diagnostic business in Dubai for R90 crore, they already had an established diagnostic business at home in form of SRL, of which Mena Healthcare became a subsidiary subsequently. Vishal Bali, CEO, Fortis Global told FE that the group plans to scale up the diagnostic business in Dubai by consolidating presence in West Asia and North African region. This is a region that the Fortis group is intensely focusing on to build larger presence in. ?We are considering diversification into other healthcare verticals in that region and you would see our increased presence there eventually,? another Fortis official told FE.
Fortis Global, an unlisted firm promoted by Singh brothers, has embarked on a mission to create a Pan-Asian integrated healthcare network, which eventually aims to have a global play.
For the same it is acquiring specialized healthcare businesses in different geographies of Asia-Pacific region which are also the market leaders in their regions. First among them was Hong Kong-based Quality Healthcare for Rs 882 crore, late last year which is a strong player in primary healthcare segment. After that came a significant stake in Dental Corp, a market leader in Australia in dentistry for which the group has already shelled out R450 crore and subsequently the underconstruction oncology hospital in Singapore for R117 crore. It is in the process of completing its takeover of the Australian firm. Bali told FE that the idea is to expand into new verticals, learn from these unique business models and replicate them in other geographies. This is the route, through which the Fortis healthcare multinational intends to multiply its footprints over Asia and Australia and eventually the globe. This alternate plan of expansion was adopted by Fortis Global after an aborted attempt of expanding through a buy out of Singapore-based Parkway Hospitals. The Malaysian state investment fund Khazanah fought a protracted battle and finally took over the reins of Parkway. This however did not deter Singhs from pursuing their global ambitions, who are on an acquisition spree of specialised healthcare in the Asian and Australian market.