MUKESH PLANS HEALTHCARE FORAY, SETS EYES ON 26 PERCENT STAKE IN FORTIS

After its high-voltage entry into wireless broadband and the expected debut into power generation, the biggest surprise to come from Reliance Industries (RIL) could be its foray into healthcare. While the final contours are yet to be drawn up, the prevailing thinking in the management is in favour of entering the tertiary healthcare market by acquiring a stake in one of the domestic corporate hospital chains.

What may come as a bigger surprise is that the company has sent feelers to brothers Malvinder and Shivinder Singh, promoters of Fortis Healthcare, the country's second-largest hospital chain. The Singh brothers are currently locked in a takeover battle with Malaysia's Khazanah for control of Singapore hospital chain Parkway Holdings.

According to industry sources, RIL could be looking at buying around 26 percent stake in Fortis. The RIL overtures have not gone completely unanswered, since top officials of both companies are understood to have met once to discuss the prospects of such a proposal.

When contacted, an RIL spokesperson declined to comment, while a Fortis spokesperson denied receiving any such offer from RIL. “This speculation is utterly baseless and no such discussion is under way,” the spokesperson said.