TRANSFORMATIONAL GROWTH THROUGH FOCUS AND EXECUTION ANNUAL REPORT 2016-17 TABLE OF CONTENTS CORPORATE REVIEW 06 Our Enterprise 08 Measures of Success 10 Our Path 11 Our Values 12 Board of Directors STRATEGIC REVIEW 20 Chairman’s Letter 24 Managing Director’s Letter 28 Business Review MANAGEMENT DISCUSSION 72 CORPORATE GOVERNANCE AND ANALYSIS REPORT 32 Max India 38 Max Healthcare 84 GENERAL SHAREHOLDER 48 Max Bupa INFORMATION 56 Antara Senior Living 62 Max SkillFirst 89 FINANCIAL REVIEW 64 Business Responsibility Review Standalone Financial Statements Consolidated Financial Statements CORPORATE REVIEW OUR ENTERPRISE MEASURES OF SUCCESS OUR PATH OUR VALUES BOARD OF DIRECTORS Corporate Review OUR ENTERPRISE Max India Limited, a multi-business corporate, owns and actively manages a 45.95% stake in Max Healthcare, a 51% stake in Max Bupa Health Insurance and a 100% stake in Antara Senior Living. Launched in 2000, Max Healthcare is an equal JV partnership between Max India and Life Healthcare, South Africa. It is a leading provider of standardised, seamless and world-class healthcare services, focused on tertiary and quaternary care. Max Healthcare has revenues of ` 2,567 crore from over 2,500 beds across 14 hospitals. Launched in 2008, Max Bupa is a 51:49 JV with Bupa Finance Plc., UK. It is one of India’s leading standalone health insurance companies with Gross Written Premium (GWP) of ` 594 crore, about 17,000 agents and tie-ups with over 3,600 quality hospitals across over 350 cities in India. Launched in 2013, Antara is a 100% subsidiary of Max India. It is pioneering the concept of ‘Age in Place’ for people over 55, by developing Senior Living communities in India. The first Antara community was launched in April 2017 near Dehradun, Uttarakhand. 6 Max Financial Services owns and actively Max Ventures & Industries (MaxVIL) serves as manages a majority stake in Max Life Insurance the Group’s entrepreneurial arm to explore the Company Limited, making it India’s first listed ‘wider world of business’, especially taking cues company focused exclusively on life insurance. from the economic and commercial reforms Max Life is a joint venture with Mitsui Sumitomo agenda of the present Government, including Insurance (MSI), a Japan headquartered global ‘Make in India’, ‘Skill India’, ‘Digital India’, leader in life insurance. among others. Launched in 2000, Max Life offers comprehensive long term Launched in 1988, Max Speciality Films is a subsidiary of savings, protection and retirement solutions through its high MaxVIL, based in Railmajra, Punjab. It is a leading manufacturer quality agency distribution and multi-channel distribution of speciality packaging films, with revenues of ` 666 crore. partners. It is India’s largest non-bank private life insurer, with revenues of ` 12,937 crore and a customer base of 3.9 million across 210 offices in 143 cities in India. Max Estates will leverage the Max Group’s in-house experience in activities aligned with Real Estate and its access to the sponsor’s private and Group land bank. The Company has already commenced work on its maiden project in Dehradun. Max I. Limited Max I. Ltd, a wholly owned subsidiary, will provide intellectual and financial capital to early-stage organizations, with sound business models and proven revenue stream, across identified sectors. Max Learning MaxVIL’s Education vertical recognises the gap in provision of quality education and views this as a genuine opportunity not merely in terms of business but also in terms of making a significant positive social impact. Launched in 2008, Max India Foundation (MIF) represents the Max Group’s social responsibility aspirations. The Foundation’s work is focussed on healthcare for the underprivileged and has benefitted over 28,00,000 people in over 730 locations since its inception. 7 Corporate Review MEASURES OF SUCCESS Max Healthcare Network Gross Revenues: ` 2,567 Cr., Max Healthcare Network EBITDA: grew 18% ` 281 Cr., grew 31% Treasury Corpus of ` 301 Cr.* Max Bupa Gross Written Premium: ` 594 Cr., grew 25% Max Super Speciality Hospital, Saket earned prestigious JCI Accreditation * As at 31st March, 2017 8 Investor base comprising marquee global financial institutions such as Goldman Sachs, IFC, Ward Ferry, Mirae Mutual Fund, New York Life, Nomura, Stronger and deeper relationships DSP Blackrock and L&T Mutual with our Joint Venture Partners Fund Life Healthcare and Bupa First Antara community Benefitted over 28,00,000 launched near Dehradun, Uttarakhand in April 2017 lives in 730 locations across India through Max India Foundation 9 Corporate Review OUR PATH Our Vision Our Mission To be the most • Be the most preferred category admired company choice for customers, patients, for health and shareholders and employees life care needs of its customers, • Deliver exceptional and ever patients and their changing standards of medical families. and service excellence • Operate to uncompromising ethical standards consistently • Lead the market in quality and reputation • Maintain cutting edge standards of governance 10 OUR VALUES Sevabhav We encourage a culture of service and helpfulness so that our actions positively impact society. Our commitment to Seva defines and differentiates us. Excellence We gather the experts and the expertise to deliver the best solutions for life’s many moments of truth. We never settle for good enough. Credibility We give you our word. And we stand by it. No matter what. A ‘No’ uttered with the deepest conviction is better than a ‘Yes’ merely uttered to please, or worse, to avoid trouble. Our words are matched by our actions and behaviour. 11 Corporate Review BOARD OF DIRECTORS DR. S.S. BAIJAL MR. ANALJIT SINGH MR. RAHUL Khosla Mentor Founder and Chariman Emeritus, Max Group Chairman Dr. Baijal served ICI (India) Limited for Mr. Analjit Singh is the Founder and Mr. Rahul Khosla is a seasoned business over 35 years and was the Chairman of ICI Chairman Emeritus, Max Group, and leader with deep management experience, companies in India from 1983 to 1987. He Chairman of Max Ventures & Industries and broad leadership skills and wide business then played an active role on the Board Antara Senior Living. An industry statesman, perspectives developed over the last 31 of the erstwhile Max India from 1998 till he was awarded the Padma Bhushan, one years of working in India and globally. He 2009, where he added immense value of India’s top civilian honours in 2011. He is is currently President of the Max Group, to the company. He was the Chairman of also the Chairman of Vodafone India, and and also serves as Executive President, Max India during the years 1998-2000. On is on the Board of Sofina NV/SA, Belgium. Max Financial Services; Chairman, Max his retirement from the Board in 2009, he He has significant interests in real estate in India; Chairman, Max Life Insurance; and was elevated to the position of ‘Chairman India and lifestyle related ventures in the Chairman, Max Healthcare. He also serves Emeritus’ and to ‘Mentor’ in 2015 after the Western Cape, South Africa, pertaining to on the Boards of Antara Senior Living and demerger of the erstwhile Max India. viticulture, wine making and hospitality. Max Bupa Health Insurance Company. Mr. Analjit Singh is a member of the Founder Under his leadership, the Max Group has Executive Board of the Indian School of delivered superior financial performance, Business (ISB) and has served as Chairman of significantly grown market capitalization, Board of Governors of the Indian Institute of and concluded seminal corporate Technology (IIT), Roorkee. He was awarded transactions. He also led the mega- the Ernst and Young Entrepreneur of the restructuring of the erstwhile Max India Year Award (Service Category) in 2012 and into three new listed entities. Before joining the US India Business Council Leadership Max, Mr. Khosla spent 11 years based in Award in 2013. In 2014, he was awarded Singapore as the Group Head of Products with Spain’s second highest civilian honour, at Visa Inc for Asia Pacific, Central Europe, the Knight Commander of the Order of Middle East and Africa, following his role at Queen Isabella. He is an alumnus of Doon Visa Inc as Chief Operating Officer for the School and Shri Ram College of Commerce Asia Pacific region. He held several senior (SRCC), Delhi University, and holds an MBA roles prior to this – as Country Head for ANZ from Boston University. He also serves as the Grindlays’ consumer banking businesses Honorary Consul General of the Republic of in India; Head of Retail Assets, Strategy, San Marino in India. Finance and Legal at Bank of America. Mr. Rahul Khosla served as President, NatHealth, India’s leading multi-stakeholder platform for healthcare organizations in 2016 and is the President of the FICCI Committee on Health Services. In addition, he serves on the Executive Board of the Indian School of Business (ISB), one of Asia’s top B-Schools. 12 MR. MOHIT Talwar MR. ASHOK KACKER MR. ASHWANI Windlass Managing Director Independent Director Non-Executive Director Mr. Mohit Talwar is the Managing Director Mr. Kacker, M. Sc. (Physics), University of Mr. Ashwani Windlass was part of the of Max Financial Services and Max India, Allahabad (Topper of the 1972 batch), founding team at the erstwhile Max India, and Vice Chairman of Max Ventures & has more than 3 decades of experience having served the Max Group in different Industries Limited (MaxVIL). In addition, he in the Government as an Indian Revenue capacities including as its Joint MD as well is the Chairman of Max Speciality Films and Service (IRS) Officer. He has served as Chief as MD, Hutchison Max Telecom from 1994 serves on the Boards of Max Life Insurance, Commissioner of Income Tax and held until 1998. He has continued as a Board Max Healthcare, Max Bupa and Antara senior positions both in executive capacities member of the Company ever since.