New Delhi, Delhi, India
Max India Ltd. (Max India), one of the three holding companies formed after the demerger of the erstwhile consolidated Max India, today announced its financial results for the first quarter of FY2016-17. These are the first set of financial results to be declared since the Company’s stock commenced trading on the NSE and the BSE in July 2016.
Max Healthcare (MHC), the largest operating company under Max India, reported Gross Revenues of Rs. 633 Cr. for its network of owned and managed hospitals, growing an impressive 28% over the corresponding quarter in the last financial year. MHC, which is an equal joint venture with South Africa-based Life Healthcare, reported a 34% growth in network EBITDA to Rs. 61 Cr. The robust growth in revenues was primarily driven by contribution from tower specialities such as Renal Sciences, Cardiac, Orthopaedics, among others. With 12.5% contribution to overall revenues, Oncology was the highest revenue contributor.
In the past one year, MHC has undertaken significant expansion efforts including two large acquisitions in the Delhi/NCR region — Pushpanjali Crosslay Hospital in May 2015 and the marquee South Delhi-based Saket City Hospital in October 2015. Together the two hospitals immediately increased MHC’s existing bed capacity by over 25%. The company plans to further expand the Saket City Hospital facility (renamed Max Smart Super Speciality Hospital) by 900 additional beds over the next few years, thereby expanding its capacity to 1200 beds. Combined with Max Healthcare’s existing and contiguously located flagship facility (Max Super Specialty Hospital – Saket), Max Healthcare will have a footprint of more than 2,000 beds in Saket, creating one of the largest and highest quality healthcare facilities across Asia.
Max Bupa, one of India’s leading standalone private health insurers, also reported significant improvement in its topline with Gross Written Premium of Rs. 122 Cr. in Q1 FY2017, growing 21% over last year. The last quarter was also marked by other significant developments at Max Bupa – Max India’s JV partner Bupa, a leading international healthcare group, acquired additional stake in Max Bupa, increasing shareholding from 26% to 49%.
In addition, Max Bupa recently inked a bancassurance corporate agency agreement with Bank of Baroda (BoB), one of India’s largest public sector banks. Max Bupa will now be able to offer its comprehensive health insurance offering to BoB’s diverse customer base across the country. Max Bupa already has bancassurance arrangements and strategic alliances with leading institutions such as Standard Chartered Bank, Federal Bank, Ratnakar Bank, Muthoot Finance and Bajaj Finserv. One of the fastest growing players in the segment, Max Bupa is now the 9th largest private health insurer in the country, recently achieving a milestone of 1 million retail customers. The Company now serves as a trusted health insurance partner to more than 2 million customers, including rural customers covered under the Government’s Rashtriya Swasthya Bima Yojana (RSBY) scheme.
Antara Senior Living, the third operating company under Max India, is pioneering the concept of ‘Age in Place’ for the elderly by developing Senior Living communities in India. Antara will launch its maiden community with over 200 apartments in December 2016 near Dehradun, Uttarakhand.
Commenting on Max India’s performance, Mr. Rahul Khosla, Chairman, Max India said, “These results reflect the tremendous growth opportunity in our key underlying businesses. With only about 5% penetration of health insurance and 1.3 hospital beds per 1000 people, both Healthcare and Health Insurance sectors have very low penetration and therefore huge growth potential. Senior living is a sunrise industry in which Antara Senior Living is a pioneer.”
Mr. Mohit Talwar, Managing Director, Max India, added, “The ‘new’ Max India is, in many ways, a reflection of the old Max India with immense opportunities to grow shareholder value across its portfolio. Our businesses will continue to set the pace in their respective industries, while focusing on sustained profitability and growth over key fiscal metrics. Backed by high quality leadership teams, we are well placed for another successful year.”
In January 2016, the Max Group concluded an important corporate restructuring wherein the erstwhile Max India was demerged into three separate entities, Max Financial Services, Max India and Max Ventures & Industries. With the listing of the Max India stock in July 2016, all three holding companies of the Max Group are now listed.
About Max Group
The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY 2016, the Group recorded consolidated revenues of Rs 14,237 Cr. It has a total customer base of 9 million, nearly 240 offices spread across India and people strength of 22,500 as on 31st March 2016.The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, KKR, IFC Washington, Temasek, Fidelity and New York Life.
The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.
About Max India Limited
Max India, the holding company for Max Healthcare, Max Bupa Health Insurance and Antara Senior Living, is focused on health and allied businesses. Max Healthcare and Max Bupa Health Insurance are joint ventures with global leaders, Life Healthcare (South Africa) and Bupa Finance Plc. (UK), respectively. These businesses have well-entrenched positions in their respective categories, and are recognized for their outstanding service standards. The Company owns and actively manages a 45.95% per cent stake in Max Healthcare, a 51% stake in Max Bupa Health Insurance and a 100% stake in Antara Senior Living.