Warburg Pincus partners with Max Healthcare

Warburg Pincus partners with Max Healthcare

Max Healthcare Institute Limited, a subsidiary of Max India Limited, today announced its decision to make a preferential allotment of shares to Madison Holding Limited and Melany Holdings Limited, registered FIIs belonging to the Warburg Pincus Group. The allotment approved by the Board represents a 13.8% stake in the equity base of the Company. The planned investment, totaling Rs. 25 crore, is for 1,88,67,925 equity shares of Rs 10/- each at an issue price of Rs. 13.25 per share. This represents a premium of 32.5% per share. With this investment, Max Healthcare joins the select group of Indian companies in which Warburg Pincus has made investments. The total investment of Warburg Pincus in India is over US$ 850 million.

Mr. Analjit Singh, Chairman, Max India said, “Max has always partnered with the best in class, such as now with Warburg Pincus who are the highest pedigree private equity investor internationally. Max believes in service excellence and financial strength and this partnership would, therefore, accelerate our growth plans in the healthcare sector to emerge as a leading healthcare provider in the National Capital Region. We welcome Warburg Pincus to the Max family.”

Mr. B. Anantharaman, Jt. Managing Director, Max India said, “The proposed investment by Warburg Pincus acknowledges the strong business fundamentals of the Max Group as it builds the country’s top quartile private life insurance business and an integrated Healthcare delivery business in the National Capital Region.” “The equity infusion by Warburg Pincus in Max Healthcare will help meet the long-term funding needs of this capital intensive business,” he added.

About Warburg Pincus

Warburg Pincus has been a leading private equity investor since 1971. The firm currently has approximately $14 billion under management, including $4 billion available for investment in a range of industries including business services, energy, financial services and technologies, healthcare and life sciences, information and communication technology, media and real estate. Warburg Pincus is an experienced partner to entrepreneurs seeking to create and build durable companies with sustainable value. The firm has an active portfolio of about 125 companies.

Warburg Pincus is the largest international private equity investor in India with investments of over US$ 800 million in the country. The firm’s key portfolio companies include Bharti Tele-Ventures, Gujarat Ambuja, Moser Baer, Nicholas Piramal, Rediff and WNS Global Services.

About Max Healthcare

Max Healthcare is the country’s first comprehensive provider of standardized, seamless, integrated and world-class healthcare services. It is committed to the highest standards of medical and service excellence, patient care, scientific knowledge and medical education. Focused on the National Capital Region (NCR) in the first phase, Max Healthcare has a primary care clinic (Dr. Max™ Clinics) located in South Delhi and three secondary care hospitals at Panchsheel Park in South Delhi, Noida and Pitampura in North Delhi. The fourth hospital, Max Balaji Hospital, at Patparganj in East Delhi, is scheduled to be commissioned in early 2005 and the fifth hospital in Gurgaon shall be launched in 2006. Max Healthcare’s flagship tertiary care Hospital at Saket is scheduled to be opened in phases, with the first wing- Max Devki Devi Heart & Vascular Institute, all set for launch.

Max Healthcare has a medical collaboration with Singapore General Hospital in areas of medical practices, research and training.

Max Healthcare has over 400 leading doctors, 280 corporate clients and a patient base in excess of 1, 70,000. By 2006, it will have over 1400 patient beds and 6 Hospitals in the NCR; emerging as a dominant player in North India.

For more details contact:

Nitin Thakur

Head – Communications
Max India
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 196
Cell # +91 9873347428+91 9873347428
E-mail: nthakur@maxindia.com

Rahul Gossian

Communications Specialist
Max India
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 145
Cell # +91 9873154228+91 9873154228
E-mail: rgossain@maxindia.com

Max India Limited Announces Audited Results For FY 2003-04

Max India today announced its audited results for the financial year ended March 31, 2004. The Company has reported a surge in its profit before tax, which increased from Rs. 3.23 crore in FY 2002-03 to Rs. 30.64 crore in FY 2003-04. Consequently, net worth of the Company increased from Rs. 450.82 crore as of March 2003 to Rs. 471.03 crore as of March 2004. The Company has successfully reduced its debt from Rs. 144.01 crore as of March 2003 to Rs. 93.08 crore as of March 2004. Interest burden in FY 2003-04 significantly reduced to Rs. 17.82 crore from Rs. 26.28 crore in the previous year.

On a consolidated basis, Max India reported a 31% year-on-year increase in total income, whilst still in nascent phase in the growth of its new businesses, from Rs. 390.62 crore in FY 2002-03 to Rs. 510.46 crore in FY 2003-04. The core businesses of Life Insurance and Healthcare achieved traction in their respective fields and continued their robust growth.

Max New York Life continues to be among the first quartile of private life insurance companies in India. Life insurance premium income increased from Rs. 96.59 crore in FY 2002-03 to Rs. 215.24 crore in FY 2003-04, a growth of 123% over the previous year. As of March 2004, Max New York Life had booked sum insured aggregating Rs. 11,123 crore, up 105% from Rs. 5419 crore as of March 2003. The product mix of Max New York Life continued to be dominated by whole life policies, which score very high on embedded value potential. The Company has sold more than 290,000 insurance policies till March 2004 and has successfully established a pan-India presence by having a network of 35 offices in 27 cities.

Max Healthcare continued to move forward to become a dominant player and a trusted provider of high quality healthcare services in the National Capital Region. Revenues from healthcare services witnessed a year-on-year increase of 111% from Rs. 11.44 crore in FY 2002-03 to Rs. 24.20 crore in FY 2003-04. The asset building process of Max Healthcare also continues and the first tertiary care hospital in Saket will be commissioned in Q3 of FY 2004-05. Another tertiary care hospital in Patparganj will also become operational around the same time. Max Healthcare, having a network of more than 335 leading doctors and an owned patient base in excess of 125,000 patients, is targeting to achieve bed capacity of 1,000 beds by 2006.

Comsat Max, which became a wholly owned subsidiary of the Max group in FY 2003-04, has been moving its service offerings further up the value chain. Comsat Max now offers services that cut across the industry segments of telecom, IT, BPO and are more broadly covered by IT enabled services in the area of networking, business continuity and knowledge solutions. To signify the strategic shift in the focus of the Company towards becoming a services centric business, its services revenue increased from Rs. 34.24 crore in the previous year to Rs. 37.68 crore in the current financial year.

Commenting on the results for the financial year 2003-04, Mr. B. Anantharaman, Group Finance Director said, “The fiscal year 2003-04 marked the successful culmination of financial closure for all the future business requirements of the Group. All the businesses have reported increased revenue and strong fundamentals. The core businesses of Life Insurance and Healthcare are poised to realize their full potential and emerge as leaders in their respective segments, generating long-term value for the investors.”

About Max India Limited

Max India Limited is a multi-business corporate, driven by the spirit of Enterprise, focused on Knowledge, People and Service oriented businesses of Healthcare and Life Insurance. Max also maintains interests in Clinical Research, Telecom services and Specialty Plastic Products businesses.

For more details contact:

Nitin Thakur

Head – Communications
Max India
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 196
Cell # +91 9873347428+91 9873347428
E-mail: nthakur@maxindia.com

Rahul Gossian

Communications Specialist
Max India
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 145
Cell # +91 9873154228+91 9873154228
E-mail: rgossain@maxindia.com

Warburg Pincus in strategic partnership with Max India Limited

To invest Rs. 200 crores through private placement

Max India Limited today announced its decision to issue preferential shares to Warburg Pincus. The issue approved by the Board represents a 29% stake in the fully diluted equity base of the Company. The planned investment, totaling Rs. 200 crore is for 10 million equity shares of Rs 10/- each at an issue price of Rs. 200 per share. With this investment, Max India joins the select group of Indian companies in which Warburg Pincus has made investments. The total investment of Warburg Pincus in India is over US$850 million.

Mr. Analjit Singh, Chairman of the Max Group said, “Raising additional capital at this stage of build-out of our new service sector businesses was a part of our long-term financial plan to support our two capital intensive businesses of life insurance and healthcare. Max has always partnered with the best in class, such as now with Warburg Pincus who are the highest pedigree private equity investor internationally. Max believes in service excellence and financial strength and this partnership would, therefore, accelerate our growth plans in the life insurance and healthcare provider sectors to emerge as leaders in their respective areas. We welcome Warburg Pincus to the Max family.”

Speaking on this occasion, Mr. Dalip Pathak, Managing Director, Warburg Pincus LLC said, “We are delighted to be investing in Max India. The life insurance and healthcare services sectors have high growth potential and Max India’s unrelenting commitment to professionalism has positioned it well for a leadership role in these sectors. Our investment is evidence of our confidence in the strong fundamentals of India’s economy, the company’s growth potential and its superior management team.”

Mr. B. Anantharaman, Group Finance Director, Max India said, “Having completed the restructuring of the Group, the Company has now fully tied up the long-term funding needs of its life insurance and healthcare businesses.” “The partnership with Warburg Pincus further underscores the strong value creation potential of Max India,” he added.

Max New York Life Insurance Company, a joint venture between New York Life, a Fortune 100 company, and Max India Limited brings innovative life insurance solutions based on New York Life’s global experience of over 158 years and Max India’s in-depth understanding of the Indian market. In recognition of Max New York Life’s high standards of service, it has become the first life insurance company in India to be awarded ISO 9001: 2000 certification. As of March 2004, Max New York Life Insurance Company has sold over 2.3 lakh policies, is having Rs. 11,238 crore as in-force sum assured and has a pan India presence through 35 sales offices in 27 cities.

Max Healthcare is all set to become India’s first truly world-class, fully integrated healthcare delivery system, offering within one model, all 3 levels of care – Primary, Secondary and Tertiary. The company plans to complete this multi-location facilities model in National Capital Region of Delhi, with a targeted investment of Rs. 520 crore, substantially within 2004-05.

As part of the final phase of its restructuring exercise, Max India exited its Pharmaceuticals and Medical Transcription businesses. This is in line with the Company’s strategic decision to focus on its core businesses of life insurance and healthcare. The Company continues to hold a 10% stake in Hutchison Max Telecom, operating cellular telephony services in the Mumbai circle.

About Warburg Pincus

Warburg Pincus has been a leading private equity investor since 1971. The firm currently has approximately $14 billion under management, including $4 billion available for investment in a range of industries including business services, energy, financial services and technologies, healthcare and life sciences, information and communication technology, media and real estate. Warburg Pincus is an experienced partner to entrepreneurs seeking to create and build durable companies with sustainable value. The firm has an active portfolio of about 125 companies.

Warburg Pincus is the largest international private equity investor in India with investments of over US$ 800 million in the country. The firm’s key portfolio companies include Bharti Tele-Ventures, Gujarat Ambuja, Moser Baer, Nicholas Piramal, Rediff and WNS Global Services.

About Max India Limited

Max India Limited is a multi-business corporate, driven by the spirit of Enterprise, focused on Knowledge, People and Service oriented businesses of Healthcare and Life Insurance. Max also maintains interests in Clinical Research, Telecom services and Specialty Plastic Products businesses.

For more details contact:

Nitin Thakur

Head – Communications
Max India
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 196
Cell # +91 9873347428+91 9873347428
E-mail: nthakur@maxindia.com

Rahul Gossian

Communications Specialist
Max India
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 145
Cell # +91 9873154228+91 9873154228
E-mail: rgossain@maxindia.com

Shiromani Vikas Award for Analjit Singh

The Shiromani Institute, a leading representative body of Sikh studies and culture, has awarded Mr. Analjit Singh, Founder & Chairman, Max India Ltd., for his sterling achievements in areas of Healthcare & Life Insurance. Justice O. P. Verma, Governor of Punjab, presented the prestigious award to Mr. Singh at a public function hosted in Chandigarh today.

Mr. Singh was amongst a host of other celebrities who were honoured for their contribution to the society. They included Mr. Harbhagwan Singh (Advocate General Punjab), Dr. (Mrs.) Inderjit Kaur, Prof. K. N. Pathak (Vice Chancellor of Punjab University), Mr. K. T. S. Tulsi, Dr. Kewal Krishan (Speaker of Punjab Vidhan Sabha) and Mr. Harbhajan Singh (Cricketer).

Mr. Singh is the founder of Max India Limited, and has been the driving force behind the Company’s sustained growth and success since 1985. As its first Managing Director, he personally led the Company into the manufacture of Bulk Pharmaceuticals by founding Max GB, followed by endeavours in the areas of Telecom Services, Speciality Plastic Products, and Electronic Components.

In 1998, Mr. Analjit Singh commenced a re-structuring of Max India Limited and identified the service led businesses of Healthcare and Life Insurance as Max’s core focus area. As Chairman, Max New York Life Insurance Company Limited, and Chairman & CEO Max Healthcare, he is guiding Max towards its vision of emerging as ‘one of the most admired service companies in India’.

Max New York Life, a joint venture between Max India Limited and New York Life, a Fortune 65 company, is one of India’s leading private life insurance companies. Offering individual and group life insurance solutions, the company has established a wide distribution network across India and has the best trained agency force in the country. Its vision is to become the most admired Life Insurance Company in India.

Recently, Max New York Life launched a significant initiative aimed at providing life insurance coverage in rural India. In the first phase, the company opened an area office in Patiala. Patiala marks the start of a major thrust on the company’s part to tap the rural potential that exists in Punjab. Capt. Amarinder Singh, Chief Minister, Punjab, inaugurated the office.

In November 2003, Senator Hillary Clinton, on behalf of The Indian American Center for Political Awareness (IACPA), awarded Mr. Singh for his ‘outstanding achievement’ in presenting the international community with an understanding of a modern and vibrant India.

For more details contact:

Nitin Thakur

Head – Communications
Max India
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 196
Cell # +91 9873347428+91 9873347428
E-mail: nthakur@maxindia.com

Rahul Gossian

Communications Specialist
Max India
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 145
Cell # +91 9873154228+91 9873154228
E-mail: rgossain@maxindia.com

ChrysCapital to invest in Max India Limited

Max India today announced a preferential issue of equity shares in the Company to ChrysCapital. The issue approved by the Board today represents a 10.71% stake in the fully diluted equity base of the Company. The proposed investment, totaling Rs. 49.82 crore, is for 27,67,699 equity shares of Rs. 10 each at an issue price of Rs. 180 per share.

Mr. B. Anantharaman, Group Finance Director said, “This marks the second phase of the group’s restructuring exercise. The Company has substantially retired debt and infused over Rs. 380 crore in its Life Insurance and Healthcare businesses, which have demonstrated strong performance.” Mr. Anantharaman added, “The proceeds of the preferential issue would further strengthen the balance sheet of the Company. Max India, with a current paid up capital of Rs. 23 crore, has free reserves in excess of Rs. 425 crore.” The Company reported profit before tax of Rs. 29 crore for the 3rd quarter ended December 31, 2003.

Mr. Analjit Singh, Chairman of the Max Group, said, “The proposed investment by ChrysCapital demonstrates the strong business fundamentals of the Company as it builds the country’s top quartile private Life Insurance business through Max New York Life Insurance Company and an integrated Healthcare delivery business in the National Capital Region through Max Healthcare, to be a dominant Healthcare player in the North.”

Max New York Life Insurance Company, a joint venture between New York Life, a Fortune 100 company, and Max India brings innovative life insurance solutions based on New York Life’s global experience of over 158 years and Max India’s deep understanding of the Indian market. In recognition of Max New York Life’s high standards of service, it has become the first life insurance company in India to be awarded ISO 9001: 2000 certification. As of January 2004, Max New York Life Insurance Company has sold close to 200,000 policies, is having Rs. 10,000 crore as in-force sum assured and has a pan India presence through 26 sales offices in 21 cities.

Max Healthcare is all set to become the first truly integrated healthcare delivery system in India, offering within one model, all 3 levels of care – Primary, Secondary and Tertiary. The Company plans to complete this multi-facility model in National Capital Region of Delhi, with a targeted investment of Rs. 420 crore substantially within 2004-05.

As part of the first phase of its restructuring exercise, Max India had exited its Pharmaceutical and Medical Transcription businesses recently. The Company continues to hold a 10% stake in Hutchison Max Telecom, operating cellular telephony services in the Mumbai circle.

About ChrysCapital

ChrysCapital is a private equity firm with approximately $ 200 million under management across two funds. It invests in a number of growth-oriented industries including Financial Services, Specialized BPO, IT Services, Pharmaceuticals & Health Care and Business Services. ChrysCapital’s investors include prestigious institutional investors like Harvard Management, IBM, HSBC, Government of Kuwait, Microsoft, Stanford University and Government of Singapore, individual investors who are founders of many premier technology firms in the US, CEOs of multinational firms, and partners of top-tier global private equity firms.

For more details contact:

Nitin Thakur

Head – Communications
Max India
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 196
Cell # +91 9873347428+91 9873347428
E-mail: nthakur@maxindia.com

Rahul Gossian

Communications Specialist
Max India
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 145
Cell # +91 9873154228+91 9873154228
E-mail: rgossain@maxindia.com