ANALYSIS. Shivinder Singh’s exit from Fortis raises questions on timing and future role

There was little indication in the run-up to Fortis Healthcare’s shareholder meeting on Wednesday that Shivinder Mohan Singh, or SMS as he is known in industry circles, was set to step down.

After all, the Fortis chain of hospitals is literally Shivinder’s “baby”, as older brother Malvinder Mohan Singh (MMS) focussed on their erstwhile drug-company Ranbaxy.

And yet, Shivinder’s decision to step down as Executive Vice-Chairman of Fortis and take up full-time Sewa at the Radha Soami Satsang Beas (RSSB) has not entirely surprised those who knew him well.

They do, however, question the timing of the announcement and the nature of SMS’ future involvement with both Fortis and RSSB. The maternal side of the Singh brothers’ family (grandfather and uncle) have headed the RSSB, and Shivinder often talks about the sect, say people familiar with the Singh family. In fact, the RSSB is not a typical religious sect, but more oriented towards a way of life and living, explains one of the persons known to Shivinder.

The Singh brothers are sons of late Parvinder Singh. It was their family that promoted one of India’s earliest drug companies that dared to venture into foreign markets. But in 2008, the Singh brothers shocked industry circles when they sold their entire stake in the drug company to Japanese drug major Daiichi Sankyo for over $4 billion. Ranbaxy though continued to hit the headlines as the company ran into rough weather with the regulator in the US.

Subsequently, as the brothers focussed their energies on growing Fortis, they continued to show their business acumen by clinically acquiring and exiting business ventures in local and foreign markets. The Singh brothers have a combined equity of over 70 per cent in Fortis. And then there’s Religare, their financial services company. In fact, some inter-group transactions in their businesses have come in for some sharp scrutiny by analysts.

But given the brothers’ ability to take the cold, difficult decision, the latest announcement from the younger brother has caught many a little off guard.

Shivinder’s role with RSSB is not clear. Is it a calling, or is it an executive sort of role there, asks another person familiar with the family. And then comes the third hard-nose business view – are the Singh brothers preparing to do a Ranbaxy on Fortis, laying the stage for a possible sale sometime?

That’s a tough one to predict, says an industry-hand, given the Singh brothers’ ability to play their cards close to the chest.

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