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Shivinder to give up executive role at Fortis

23 September, 2015 4:15 PM
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Shivinder to give up executive role at Fortis

He will continue on the Board of Directors but he's taking up full-time 'Sewa' at Radha Soami Satsang

Shivinder M Singh, the vice chairman at country's second largest healthcare chain Fortis, has decided to give up his executive role and serve Radha Soami Satsang. Singh, 40, will become the non-executive vice chairman from January 2016 but continue to be on the board. His elder borther, Malvinder M Singh, 42, will continue to be the executive chairman.

Shivinder plans to take up full time Sewa at Dera, Radha Soami Satsang Beas (RSSB), a spiritual organisation headquartered near Amritsar, Punjab, the company said. "Having spent almost two decades setting up and running Fortis, our mission of saving and enriching lives is an integral part of my being. Over time this has inspired me to do more direct service and give back to society a little of what I have received in abundance", Shivinder said.

The two brothers, who jointly set up and grew the healthcare business from scratch, together hold 71.33 per cent stake in the company that has a market cap of about Rs 8,000 crore. The company's stock closed at Rs 175.60 at the BSE, up nearly 3 per cent from the previous day. The duo also hold a 51 per cent stake in financial services company, Religare, valued at Rs 5,200 crore and own the diagnostic chain SRL.

The two brothers had inherited pharma company Ranbaxy from father Parvinder Singh (who passed away in 1999), ran it for several years and sold their stake to Japanese buyer Daiichi Sankyo for $4.6 billion in 2008. In April last year, Sun Pharma bought Ranbaxy for $4 billion.

Fortis has trimmed its debt from close to Rs 4,600 crore over the last couple of years ago to less than Rs 1,200 crore now by selling most of the overseas assets that it had acquired in the recent years and is looking to report profits this year. Fortis reported a consolidated income of Rs 4,089 crore in the year ended March 31, 2015 and a net loss of Rs 144 crore.

The company, which burnt its fingers in a series of overseas acquisitions, now plans to focus less on expansion and more on enhancing services and margins. Therefore, Shivinder's decision will not have a material impact on operations. In July, the brothers reappointed Bhavdeep Singh as the chief executive officer who rejoined the company after a gap of four years.

At a time when brothers in most Indian business families have split, the Singh brothers continue to share a close strong bond. The two brothers draw same salary and perk and jointly own the empire. Even their office cars are same and they live in houses across the road.

Source: business-standard.com

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