On April 12, Sunil Munjal-owned Hero Enterprise Investment and Burmans of Dabur India announced their decision to bid for Fortis Healthcare Ltd (FHL) at an investment of ₹1,250 crore. This did come as a surprise for many. Though Munjals and Burmans, already jointly hold approximately 3 per cent in FHL, this bid created a flutter as till now Munjal has been quoted as saying that he was “happy being an investor”. In a quick chat with BusinessLine Munjal shared the intent behind this bid and why the partnerships with Burmans should not be seen as not in sync. Excerpts:
What prompted this offer? What kind of due diligence was done by you? (If I remember correct earlier Hero had decided against bidding).
Both families have been engaged and interested in the healthcare sector for several years, and have always been on the lookout for opportunities to increase their contribution in this sector. Fortis is a wonderful healthcare brand that is going through a difficult period, we believe we can step in as investors, and help with an immediate cash infusion.
We only have public information and have not done any due diligence, so, to show our deep and long-term commitment in Fortis, and have offered to bring in the first tranche of ₹500 crore without any due diligence. It is a risk we are taking, but our conviction is very strong.
How does it synergise with your current business?
The Burman family has been involved in pharma, home-care and oncology.
Our family has been involved in non-profit healthcare for decades. Through a managing society, we take care of one of North India’s largest multi-speciality hospitals – plus a medical college and a nursing college — in Ludhiana with over 1,500 beds.
We also run a large insurance distribution business, which is already into health and general insurance.
Burmans and you make a very unlikely partnership is how everyone is seeing it. How do you perceive it?
Partnerships are based on trust, compatibility, mutual trust and respect. The Burman and Munjal relationship is based on these pillars — our families have known each other for long, and we share similar values, which make it much easier to do business together. Anand Burman is a close and trusted friend for a long time and he and Mohit Burman are the owners of one of India’s most respected consumer companies.
You have said you are happy being an investor. So, does that mean if someone else gets the deal you would be ok with it?
We do not wish to speak about the others or their chances, we believe we are in a position to offer the best deal. It is not only the quickest and the simplest, it also benefits the entire universe of Fortis.