Ranbaxy to share Fortis brand name with Dutch firm

MUMBAI:
A major hurdle for the Indian entry of Belgian-Dutch fiscal grouping Fortis has
at last been cleared. The pudding stone will now be able to utilize its trade name name in
its Indian ventures , thanks to an understanding it have reached with Ranbaxy group,
which have companies under the Fortis umbrella in the country, beginnings said.

Under
the deal, Ranbaxy will maintain the name for its healthcare ventures while the
European grouping will utilize the term Fortis for its fiscal ventures.

Replying
to an electronic mail query, the European group’s interpreter Liliane Tackaert
said: “Indeed, we can corroborate that we have got establish an understanding with Fortis
Healthcare Limited and its affiliates, about the usage of the Fortis trade name in
India, in the banking and coverage sector, including websites.” The
Ranbaxy grouping made no functionary comment, but a beginning confirmed the development.

Fortis,
a € 97-billion banking coverage group, is firming up programs to raid into
the Indian market. It had been locked in a legal conflict with Ranbaxy grouping over
the usage of the name ‘Fortis’ . Last year, it had formed a joint
venture with IDBI and Federal Soldier Depository Financial Institution for life insurance. This venture got
regulatory blessing more than three calendar months ago, but had not begun its services
yet.

“Fortis
is presently in the procedure of launching bancassurance activities in India, in
partnership with IDBI and Federal Soldier Bank,” Multiple Sclerosis Tackaert said. “Asia is
clearly a part where Fortis desires to turn and develop.”

The
Indian group, better known for running Ranbaxy, one of India’s largest
pharmaceutical companies, have got four healthcare companies under its fold; Fortis
Healthcare Limited , Fortis HealthStaff, Fortis Clinical Research and Fortis
Health World Pvt Ltd. Their name calling would stay unaffected but the grouping would
have to rebrand Fortis Financial Services Ltd.

The
European group’s three-way coverage articulation venture was a victim of the
uncertainty over the Fortis name. “The Ranbaxy grouping had objected to the
joint-venture ,” said IDBI Depository Financial Institution deputy sheriff managing manager Jitender
Balakrishnan.

Under
the agreement, IDBI Depository Financial Institution would have 48% equity while Fortis Insurance
International and Federal Soldier Depository Financial Institution would respectively ain 26%. At the clip of the
announcement, Fortis had said it hoped to kick off trading operations by ‘mid-2007
’, subject to regulating approval.