Fortis, Religare to benefit from Ranbaxy profits

Flush with funds, almost to the tune of Rs 10,000 crore after selling family stake in Ranbaxy Laboratories to Japan's Daiichi Sankyo, Malvinder Singh plans to pump in money to Religare and Fortis to make them top firms in respective sectors, besides planning to list diagnostics subsidiary 'SRL Ranbaxy'.

"Healthcare and financial services are two areas where we have existing businesses, where we will make investments," Ranbaxy CEO and Managing Director Malvinder Singh said when asked how he planned to utilise proceeds of stake sale.

Earlier this month, Ranbaxy promoters had entered into an agreement with Daiichi Sankyo to sell off their 34.82 per cent stake in the pharmaceutical major, valued at around Rs 10,000 crore.

"I think for the next many years, our focus is clear to remain in healthcare and to make it number one healthcare firm in India," Singh said.

Elaborating on future plans for Fortis, Singh said, "In the next step, we would be looking at taking it to international level and have strong presence in Asia and then take it to other markets. That will happen in a phase manner."

Dispelling speculations of stake sale in Fortis Healthcare and link-up with Anil Ambani group, he said: "I am not talking to them and I welcome competition but there is absolutely no discussion at any place and I am not talking to anyone about this."

As for Religare, he said, "In terms of the financial services, we certainly want Religare to be in the financial services what Ranbaxy is in pharmaceutical sector."

Singh, however declined to divulge details of investments in the two firms.

"Till now, we haven't discussed it to decide what will go where," he said.

Asked if the funds from the Ranbaxy stake sale could be utilised by Fortis and Religare for mergers and acquisitions, he said, "It is an integral part of the growth of these companies."

Two-three months ago Religare picked up the oldest broking house in UK, which was the first acquisition by any financial company outside India, he said.

"We have done things and will keep doings which will continue to strengthen our business globally. We are always evaluating opportunity and it is difficult at this point of time to give definite answer," Singh said when asked if there could be any acquisition in the near future.

The Singh family had recently undertook a rebranding exercise to rechristening its diagnostics subsidiary SRL Ranbaxy under the Religare name and is planning to expand it further.

Asked if there was any plan to go public with the diagnostic arm, Singh replied in the affirmative.

"The company is doing well... we are the largest pathology company in the country and at some point, we would like to list it as a separate company in the Indian market," he said.

Under the new initiative, Singh said SRL Ranbaxy would be rebranded in terms of the growth and the business.

via Economic times