INTRODUCTION

The story of Max is the story of Enterprise, Perseverance, and Credibility. These have enabled our birth, energized our life, and continue to define our path forward. We have tempered Enterprise with Knowledge, Perseverance with Systems and Processes, Credibility with Values and Operating Principles, to create business acumen and culture, uniquely our own. This has led us to believe in People. To recognize human capital as our most vital resource and our greatest intrinsic worth.

Enterprise and Knowledge have led us to find the 'new' through the 'unknown'. We have grown with a 'hands on' approach. With the building blocks of Enterprise, Knowledge, and People, we have created diverse businesses from the ground up. Each of these has emerged as a distinguished organization. Our mature businesses enjoy leadership positions in their area of activity; our emerging businesses are well on their way to creating industry benchmarks.

MAX INDIA – THE REIVENTION PHASE

The telecom sector in India was dynamic. It was on an upward growth spiral, yet it faced a slew of regulatory and industry issues, and was addressing what may well be called, an emerging market. Hutchison Max was the largest, the best regarded, and the most profitable of all telecom players. In its circle of operation (the western region of India, including Mumbai), Hutchison Max was the undisputed leader in cellular phone services, and paging services. 'Max Touch' and 'Max Page' were leading consumer brands.

At this unrivalled height of success, Max India took a decision, unprecedented in corporate India. The Company decided to divest 90% of its stake in Hutchison Max. .

Max India did this for two reasons, one as important as the other. The first was sheer long-term business sense. Whilst working its way to the top, Max India had acquired incisive, first-hand understanding of ground realities governing the telecom business. However, its aspiration of being a national brand was not shared by its business partner.

With Hutchison's concurrence, Max India tried to grow the business nationally, in concert with British Telecom, as 'Max BT'. The idea was to acquire four telecom circles, covering the states of Maharashtra, Gujarat, Karnataka, and Punjab. This could not be realized. As a result, Max India 's national ambition could not be fulfilled. Max India knew the challenges and the shape of things to come, and could appreciate the finer aspects of this highly regulated industry. Business sense dictated that it unlocks value and exits while it was still the leader. Subsequent developments in the telecom sector endorsed this astute business decision.

If the first reason to exit telecom was a business decision, the second rested on our commitment to philosophy. At birth, Max India had promised itself that it would always stay true to its spirit of enterprise. This meant that we had to reinvent ourselves in order to emerge as an admired company in the 21st century. It meant that we had to alter our business paradigm to identify core businesses, and retain only those ventures, which had overall synergy with this core.

THE REINVENTION PROCESS

After divestment in Hutchison Max, Max India Limited spent a year answering fundamental questions about itself. This was a period of introspection, study, and self-definition.

We decided to move away from being a predominantly manufacturing driven business-to-business company, and move towards being services driven business-to-consumer company. We chose service excellence and world-class quality, as over-riding value propositions. Our competitive advantage was identified as :

- The quality of our human capital
- our proven leadership
- our experience in executing start-up businesses
- our familiarity with regulated sectors
- our financial capital
- our best-in-class partnerships

We undertook an organization-wide restructuring exercise for all of 2000, and most of 2001. It was a paradigm shift, which led Max India to the businesses of :

· Life Insurance (Max New York Life Insurance)
· Healthcare (Max Healthcare)
· Clinical Studies (Max Neeman)

Today, Max India is into the business of ‘Life’. Businesses built on Knowledge, delivered through People, and distinguished by Service Excellence. Each of these offered the potential of developing into institutions, of adding lasting value to people's lives, and optimizing the intrinsic genius of India. Each of these offered Max India complementary windows of geographical reach and business maturity.

Business View
- Core Businesses

The service driven core businesses which operate on the business to consumer model are :

- Life Insurance
- Healthcare
- Clinical Research
- Max Bupa (To start operations shortly)

Core businesses define the 'new' Max India.

Traditional Businesses
The manufacturing driven traditional business, which operate on the business to business mode is:

- Speciality Packaging Products

Traditional businesses are mature, proven, stand-alone businesses, which will grow organically

Divestments
Businesses like Electronic Component Distribution, Plating Chemicals, and Penicillin based bulk drugs as well as generic bulk drugs, were too narrowly specialized to be incorporated in the new business restructuring. Max India exited them.