Max India Limited, a major multi-business corporate in the business of life and care, and Bupa Group, a leading international health and care company, have formed a new partnership to enter the health insurance market in India.
The two companies today announced the creation of a joint venture called Max Bupa Health Insurance Limited which, subject to regulatory approval, will offer a suite of products to both consumer and business customers. The initial share capital of the JV will be Rs.100 crores (£12million).
Bupa Group will take a 26 per cent stake in Max Bupa, the maximum allowed under current Indian rules on foreign investment in the country.
India has potential to be one of the largest health insurance markets in the world. With over 70 per cent of India’s healthcare spend being in the private sector, Max India Ltd and Bupa Group believe the new joint venture can be grown into a major health insurance business.
Mr Analjit Singh, Chairman of Max India Ltd, said:
“Max India has been in dialogue with leading international players for the Health Insurance business. Our decision to partner with Bupa was based on the synergies and unique strengths that Bupa brings to this venture. Bupa has the expertise in creating and delivering differentiated health-insurance products and a proven ability to operate in and adapt to international health care markets. Through Max India, we will capitalize on our knowledge and experience in the Health and Life Insurance sectors.”
“I am very excited about this new journey that we are about to embark on and I am confident that with our expertise in forging successful partnerships and working efficiently and successfully in joint ventures alongside global leaders, this collaboration with Bupa will be a momentous one.”
Chief Executive of Bupa Group, Ray King said:
“The Indian health insurance market has massive potential, with a growing, young, population. We believe that many of its citizens will be looking for the high quality of care and customer service that Max Bupa will be well placed to offer.”
“We are pleased that in Max India we have found a partner with sound experience, excellent knowledge of the marketplace, and a set of values which match Bupa’s.”
“This is an exciting opportunity for both Bupa and Max India Ltd. It also emphasises Bupa’s determination to identify, and participate in, new opportunities for health and care provision in international markets.”
Max India is a multi-business corporate, driven by the spirit of Enterprise, focused on People and Service oriented businesses of Life Insurance (Max New York Life Insurance), Healthcare (Max Healthcare), and Clinical Research (Max Neeman Medical International). Max India’s other businesses are Speciality packaging products (Max Speciality Products) and Healthcare Staffing (Max HealthStaff). Max India Limited is listed on National Stock Exchange of India and the Bombay Stock Exchange.
The Company’s vision is “to be one of India’s most admired corporates for service excellence.” Towards this end, it has established niche businesses that are today recognised as being at the forefront of service excellence, in each of the industry sectors where it operates.
For the financial year 2007-08, the Max India Group reported revenues of Rs. 3,611 crore (US$ 860 Mn), registering a growth of 81% over the previous year. The Group had a treasury corpus of Rs. 1,261 crore (US$ 300 Mn) with total investments of Rs. 4,840 crore (US$ 1.2 Bn) as on March 31, 2008.
The Group is today in an expansionary phase in its existing businesses. In addition, keeping in mind the core interests in the Life Insurance and Healthcare space, and its business advantage because of significant presence in these areas, Max India is expanding into the business of Healthcare Insurance.
Bupa has 10 million customers in over 200 countries and more than 55,000 employees. In 2007, it celebrated its 60th anniversary, having formed in 1947 as the British United Provident Association. Bupa was founded ‘to prevent, relieve and cure sickness and ill health of every kind’. Six decades on, that remains its goal. As a broad-based health and care group, Bupa continues to help people around the world enjoy longer, healthier lives. Bupa’s core businesses are health insurance, and care homes for the elderly, although it also owns hospitals and has a long history of healthcare provision and illness prevention. With significant operations in the UK, Spain, Australia, United States, New Zealand, Saudi Arabia, Hong Kong and Thailand – Bupa is a leading international healthcare company.
For more details contact:
Max India Ltd.
Tele # 91 011 2693 361091 011 2693 3610 extn. 174
Tele # 0044 (0) 20 7656 26320044 (0) 20 7656 2632