CORPORATE REVIEW 1 TRANSFORMING TO ENHANCE VALUE ANNUAL REPORT 2015-16 INDEX CORPORATE REVIEW OUR ENTERPRISE MEASURES OF SUCCESS OUR PATH OUR VALUES BOARD OF DIRECTORS STRATEGIC REVIEW CHAIRMAN’S LETTER MANAGING DIRECTOR’S LETTER BUSINESS REVIEW MANAGEMENT DISCUSSION AND ANALYSIS MAX INDIA MAX HEALTHCARE MAX BUPA ANTARA SENIOR LIVING MAX SKILLFIRST BUSINESS RESPONSIBILITY REVIEW FINANCIAL REVIEW MAX INDIA FINANCIALS - STANDALONE MAX INDIA FINANCIALS - CONSOLIDATED CORPORATE REVIEW 3 04 6 8 10 11 12 20 22 26 30 32 34 38 48 56 62 64 69 69 116 4 CORPORATE REVIEW 01 CORPORATE REVIEW OUR ENTERPRISE MEASURES OF SUCCESS OUR PATH OUR VALUES BOARD OF DIRECTORS 6 CORPORATE REVIEW OUR ENTERPRISE Max India Limited, a multi-business corporate, owns and actively manages a 46% per cent 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 Launched in 2008, Max Bupa is a Launched in 2013, Antara is a is an equal JV partnership between 51:49 JV with Bupa Finance Plc., 100% subsidiary of Max India. Max India and Life Healthcare, UK. It is one of India’s leading It is pioneering the concept of South Africa. It is a leading provider standalone health insurance ‘Age in Place’ for people over of standardised, seamless and companies with Gross Premium of 55, by developing Senior Living world-class healthcare services, ` 476 crore, about 13,000 agents communities in India. The first focused on tertiary and quaternary and tie-ups with over 3,600 quality Antara community will open in late care. Max Healthcare Network has hospitals across over 350 cities in 2016 near Dehradun, Uttarakhand. revenues of ` 2,181 crore from over India. 2,500 beds across 14 hospitals. CORPORATE REVIEW 7 Max Financial Services owns and actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed Company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance. Launched in 2000, Max Life is a joint venture with MS&AD, Japan. It is India’s largest non-bank private life insurer, with revenues of ` 9,216 crore and a customer base of 3.8 million across 215 offices in 138 cities in India. Max Ventures & Industries is the holding Company for Max Speciality Films and serves as the Group’s entrepreneurial arm to explore the ‘wider world of business’, especially taking cues from the economic and commercial reforms agenda of the present Government, including ‘Make in India’, ‘Skill India’, ‘Digital India’, among others. Education Max I. Limited Vertical Launched in 1988, Max Max Estates will leverage Max I. Ltd, a fully owned MaxVIL’s Education Speciality Films is a the Max Group’s in-house subsidiary, will provide vertical recognises the subsidiary of MaxVIL, based experience in activities intellectual and financial gap in provision of quality in Railmajra, Punjab. It is aligned with Real Estate and capital to early-stage education in India and a leading manufacturer of its access to the sponsor’s organizations, with sound views this as a genuine speciality packaging films, private and Group land business models and opportunity not merely with revenues of ` 710 crore bank. The Company has proven revenue stream, in terms of business but already commenced work across identified sectors. also in terms of making a on our maiden project in significant positive social Dehradun. 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 17,00,000 people in over 600 locations since its inception. 8 CORPORATE REVIEW MEASURES OF SUCCESS Max India Limited 26% CAGR Equity shares listed on the in Max Healthcare BSE and the NSE w.e.f. July 14, 2016 revenues since FY 2011 Treasury corpus of ` 367 crore* Focus on high growth and under-penetrated sectors Max Bupa reaches over Antara Dehradun 1 million retail community set to commence customers operations in Q3 FY 2017 * As at June 30, 2016 Growth numbers calculated against restated numbers for previous year for like to like comparison CORPORATE REVIEW 9 Max Healthcare Max Bupa GWP turns profitable, grows at a strong 28% PAT at ` 10 crore 2 Major Hospital acquisitions in Delhi/NCR provide a platform to more than double bed capacity to over at 5,000 beds Strong and deepening Investor base comprising Benefitted over relationships with our marquee global financial 17 lakh lives in Joint Venture institutions such as 580 locations Partners Life Goldman Sachs, across India through Healthcare and IFC Washington, Max India Foundation Bupa Temasek, Fidelity, New York Life, Nomura and Invesco 10 CORPORATE REVIEW OUR PATH Our Vision To be the most admired Company for health and life care needs of its customers, patients and their families. Our Mission Be the most preferred category choice for customers, patients, shareholders and employees Deliver exceptional and ever changing standards of medical and service excellence Operate to uncompromising ethical standards consistently Lead the market in quality and reputation Maintain cutting edge standards of governance CORPORATE REVIEW 11 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. 12 CORPORATE REVIEW BOARD OF DIRECTORS DR. S. S. BAIJAL MR. ANALJIT SINGH MR. RAHUL KHOSLA Mentor Founder & Chairman Emeritus 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 Chairman Emeritus, Max Group, leader with deep management of ICI companies in India from 1983 and Chairman of Max Ventures & experience, broad leadership skills and to 1987. He then played an active Industries and Antara Senior Living. An wide business perspectives developed role on the erstwhile Max India Board industry statesman, he was awarded over the last 30 years of working in India from 1998 till 2009, where he added the Padma Bhushan, one of India’s top and globally. He is currently President, immense value to the company. He civilian honours in 2011. He is also the Max Group, Executive President, Max was the Chairman of the erstwhile Chairman of Vodafone India, and is on Financial Services, Chairman, Max Max India during the years 1998-2000. the Board of Tata Global Beverages India, Max Life and Max Healthcare. On his retirement from the Board in and Sofina NV/SA, Belgium. He has Under his leadership, the Max Group 2009, he was elevated to the position significant interests in real estate in has delivered superior financial of ‘Chairman Emeritus’ in 2009 and to India and lifestyle related ventures performance, significantly grown ‘Mentor’ of new Max India in January in the Western Cape, South Africa, market capitalization, and concluded 2016 after the demerger of the erstwhile pertaining to viticulture, wine making seminal corporate transactions. Max India. and hospitality. Mr. Analjit Singh is He led the mega-restructuring of a member of the Founder Executive the erstwhile Max India into three Board of the Indian School of Business new listed entities and is currently (ISB) and has served as Chairman spearheading the proposed merger of Board of Governors of the Indian of Max Life and Max Financial Services Institute of Technology (IIT), Roorkee. with HDFC Life, which will result in the He was awarded the Ernst and Young creation of India’s largest private life Entrepreneur of the Year Award insurance company. Before joining (Service Category) in 2012 and the Max, Mr. Khosla spent 11 years based US India Business Council Leadership in Singapore as the Group Head of Award in 2013. In 2014, he was Products at Visa Inc for Asia Pacific, awarded with Spain’s second highest Central Europe, Middle East and civilian honour, the Knight Commander Africa, following his role at Visa Inc as of the Order of Queen Isabella. He is Chief Operating Officer for the Asia an alumnus of Doon School and Shri Pacific region. He held several senior Ram College of Commerce (SRCC), roles prior to this – as Country Head Delhi University, and holds an MBA for ANZ Grindlays’ consumer banking from Boston University. He also serves businesses in India; Head of Retail as the Honorary Consul General of the Assets, Strategy, Finance and Legal at Republic of San Marino in India. Bank of America. CORPORATE REVIEW 13 MR. MOHIT TALWAR MR. ASHOK KACKER MR. ASHWANI WINDLASS Managing Director Independent Director Non-Executive Director Mr. Mohit Talwar is the Managing Mr. Ashok Kacker, M. Sc. (Physics), Mr. Ashwani Windlass was part of the Director of Max Financial Services University of Allahabad (Topper of the founding team at Max India, having and Max India, and Vice Chairman of 1972 batch), has more than 3 decades served the Max Group in different Max Ventures & Industries Limited. In of experience in the Government as an capacities including as its Joint MD as addition, he is the Chairman of Max Indian Revenue Service (IRS) Officer. He well as MD, Hutchison Max Telecom Speciality Films and serves on the has served as Chief Commissioner of from 1994 until 1998.