Wockhardt acquisition could bring in Rs 360-crore revenue for Fortis Page 1 of 4

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Wockhardt acquisition could bring in Rs 360-crore revenue for Fortis Page 2 of 4

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Wockhardt acquisition could bring in Rs 360-crore revenue for

Fortis
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Posted: Saturday, Jan 23, 2010 at 0109 hrs IST
Updated: Saturday, Jan 23, 2010 at 0109 hrs IST

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New Delhi: The country’s second largest hospital chain, Fortis Healthcare Ltd, expects that acquisition of Wockhardt will bring revenues of
over Rs 360 crore per annum. The impact of the acquisition of the ten Wockhardt hospitals has started reflecting on the balance sheet of Fortis
with the chain of hospitals contributing Rs 15 crore in 15 days in the third quarter of this financial year.

Shivinder Mohan Singh, managing director, Fortis Healthcare, said that in times to come, the company would strive to better the estimated
annual revenue of Rs 360-370 crore from the Wockhardt hospitals. However, he added that the company doesn’t give guidance on
performance. Around 3,200 medical and non-medical employees and the full senior management of the erstwhile Wockhardt hospitals have
been successfully transitioned to the new company.

Fortis Healthcare Limited has recently announced the successful completion of the Rs 909-crore acquisition of Wockhardt hospitals. The
acquisition has been made under a wholly-owned subsidiary, Fortis Hospitals Limited, and funded partly by the recently concluded rights
issue, internal accruals and debt. The deal was originally announced on August 24, 2009, when Fortis executed a binding agreement to acquire
the hospitals.

After crossing its target of 6,000 beds and 40 hospitals two years in advance, Fortis has set a goal of achieving a profit target of Rs 100 crore in
next four to five years. “After having accomplished our targets before time, we think the time has come when quantifying future goals in terms
of number of beds and hospitals has lost significance for us. The focus now should shift to achieving higher average revenue per bed. We aim
to achieve a profit target of Rs 100 crore in the next five years. But, going by our track record, we should be able to achieve it in the next three
to four years,” said Singh.

“The addition of the erstwhile Wockhardt family is going to create a new set of opportunities. It allows us to leverage our joint leadership
position. As is being witnessed quarter-on-quarter, our growth strategy is paying rich dividends not just financially but in bringing superior
quality clinical care,” Singh said.

The net profit of the company jumped 330% to touch Rs 22 crore in the third quarter of this financial year compared to the corresponding
quarter of the previous fiscal. The third quarter revenue stood at Rs 229 crore, up 44% compared with the same quarter in the...

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