max india limited...max india limited. is a multi-business corporate, driven by the spirit of...
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Max India Limited
An Introduction
Reinventing : Paradigm shiftFrom B to B to B to C
From Intermediates and Commodities to BRANDS
Outcome of considered strategic choice
The Changing Face of ‘Max’
Renewal for Business Excellence
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.
From
Core Businesses•Life Insurance•Healthcare•Information Tech.
•Clinical Research•Telecom Services•Electronic component Distribution•Bulk Pharma•Specialty Plastics
Other BusinessesTo
Core Businesses•Life Insurance•Healthcare
•Clinical Research•Specialty Plastics
Other Businesses
Sharper focus
MAX INDIA - Revised Descriptor
Divestment of Pharmaceutical businesses
Divestment of Electroplating businesses
IT services business wound up
Divestment of Medical Transcription business at
CAGR of 58%
Divestment of VSAT/ related services business
Paid down Debt from $47 Mn in Dec ’02 to $21 Mn
Sharply Reduced Overheads, Reduction in Debt & Interest
2001-2004: Restructuring Phase Complete
Debt Reduction
From a peak of $47 Mn in Dec’02
$21 Mn, Currently
$6 Mn by FY 2006
Annual Interest Cost
From a level of $6 Mn in 2002-03
$3 Mn currently
$0.6 Mn by FY 2006
Reducing Debt and Interest
Dr. Bhai Mohan Singh – Lifetime Chairman EmeritusAnaljit Singh – ChairmanDr. S.S. BaijalN.C. SinghalAshwani WindlassBharat SahgalAnuroop SinghN. RangacharyPiyush MankadRajesh KhannaB. Anantharaman – Jt. Managing Director
Max India – Board of Directors
Core Businesses
Life Insurance
Healthcare
Strategic Investments
BOPP – Cash Cow
Clinical Research – Exponential Growth
Hutchison Max- A Valuable Asset
The Way Forward
US $ Mn
Investment in Core Businesses
* Life Insurance - Max India’s stake is 74%$ Healthcare - Max India’s stake is 70%
Business Current Equity Investment
Peak Equity Investment
Life Insurance * 104 135
Healthcare $ 67 72
Life Insurance
Joint Venture between Max India & New York Life International
NYL, ranked 68th in Fortune 500 companies provides insurance domain expertise
NYL is one of the oldest mutual life insurance company in the US with over $200 billion in assets under management
Max India contributes local market understanding and managing regulatory environment
MAX NEW YORK LIFE INSURANCE
1) Full Suite of products with a focus on protection
Long Tenor products , Young customer base
Unit Link in place : contributes 32% of total sales for the company for the period Jan – Apr 2005
2) Build best in class agency
Productivity order of magnitude higher than competition
Most reputed in-house training (about 70 trainers)
Over 400 hours of training
3) Wide geographic coverage
38 Own offices – future plans to cover 62 offices
Deep penetration in to Punjab – 8 offices and 32 rural branches
Corporate agent coverage extends to an additional 100 towns
Strong Co-operative bank relationships , Partnership from inception with Yes Bank
MNYL’S Strategy to build a Strong Life Insurance Business
6) High embedded value / appraisal value creation
4) Strong quality orientations to business
First life insurer to be awarded the ISO 9000 : 2001 certification6 sigma program underwayBalanced scorecard approach
Good Audit & Compliance orientation
5) Strong customer trust and credibility
High capital base of $104 Mn
Balanced investment approach with a very long term view
- 76% of portfolio consists of long tenor government paper
- 24 % in AA+ and better corporate bonds
No asterisks in advertising
Honest illustration
- Controlled centrally
- Sent along with policy
MNYL’S Strategy to build a Strong Life Insurance Business
Protection Oriented, Longer Tenor Life Insurance
33
22
31
Policy Proportion of Policies
(%, by number)
Whole Life 40
Endowment 31
Term 4
Deferred Annuity
2
Unit Linked 3
Money Back 19
Tenure (Years)
Age of Insured(Years)
29 29
MNYL Average MNYL Average
19
18
29
39
Actuarial Persistency of 76.7 % by Premium93% of portfolio is participating
As on March 31st , 2005
34
3311
23
37
As on March 31st , 2005
Top Quartile Fund Performance
Total No. of agents as of 31st
Mar 05 is 7567
Agent Training – MNYL’s Strength and Key Differentiator
Pre-licensing Training (100+hrs as mandated by the regulator -IRDA)
Basics of Life Insurance (LI)
LI products (incl. Whole Life, Endowment, Term, Annuity, Market Linked etc.)
Sales Process
Basic Work Habits
Documentation and Processes
Post – licensing training – 18 months rigorous training schedule
MNYL products and riders
Selling Skills
Competition Overview and Analysis
Business Insurance
Insurance under HUF and MWPA
Presentation Skills
Customer Service
Underwriting
Claims
Advance Concepts in Insurance like Lapses, Reinsurance etc.
Agent Training – MNYL’s Strength and Key Differentiator
Mumbai
Chennai
Bangalore
Delhi
KolkataSurat
Indore
Nagpur
Amritsar
Jalandhar
Ludhiana
Chandigarh
Rajkot
Ahmedabad
Jaipur
Hyderabad
Pune
Coimbatore
Our Footprint
Visakhapatnam
Dehradun
Faridabad Jamshedpur
Vijaywada
Bhubaneshwar
Tirchy
Salem
Raipur
Jabalpur
Gwalior
Ranchi
Jamnagar
Hubli
Amravati
US$ Mn April 2004 – Mar 2005
No. of Policies Total New Business Premium (Rank)
ICICI Prudential 614519 (1) 327 (1)Bajaj Allianz 288047 (2) 190 (2)
Birla Sunlife 198283 (6) 118 (3)HDFC Standard Life 206123 (5) 97 (4)OM Kotak 63398 (10) 80 (5)ING Vysya 111046 (8) 59 (6)Tata AIG 228640 (3) 56 (7)
Max New York Life 216582 (4) 48 (8)Aviva 83178 (9) 41 (9)
SBI Life 126314 (7) 37 (10)AMP Sanmar 35193 (12) 19 (11)Metlife 46562 (11) 11 (12)Sahara 10201 (13) 0 (13)Total Private Life 2228086 1083
Note : Source is IRDA, , only individual sales included
Sales Performance (Apr’04 - Mar’05)
MAX NEW YORK LIFE INSURANCE
Mar-05 Mar-04 Dec-04 Dec-03
a) Sales Value (Annualized first year premium) $ Mn. 17.66 10.86 47.64 24.82
b) Average case size per active agent $ 367.10 218.21 272.00 263.22
c) Case rate per active agent per month No. 3.22 3.27 2.16 1.86
d) Number of agents No. 7,567 5,608 6,908 5,070
e) Net agents added No. 659 538 1,838 1,916
f) Overall persistency rate % 76.70 82.10 82.90 81.10
g) Gross written premium income $ Mn.First year premium 13.06 9.16 42.76 21.18Renewal premium 13.98 5.10 31.98 14.29Single premium 3.63 0.52 3.71 2.78Total 30.67 14.79 78.44 38.24
h) Number of Policies sold No. 62,647 54,224 214,347 113,287
h) Sum insured in force $ Mn 3,839.86 2,564.87 3,387.56 2,178.89
Key Business Drivers Unit Quarter Ended Year Ended
Healthcare
PRIMARYDr MaxTM Consult
GP/ FP ConceptSpecialist doctor consultationDiagnostics: X-Ray, ECGPathology CollectionTreatment Room
High-end Diagnostics:MRI, CTDoctor ConsultationSurgery & inpatientfacilities
Max Hospital-Saket
Dr Max™ Implant
Pathology CollectionFull time nurse/first aidPart time doctor
PRIMARY
SECONDARY TERTIARYMax
TertiaryHospital
Max Medcentre™
& Hospital
Dr Max™
Dr Max™Dr Max™
Dr Max™
Dr Max™
Max Medcentre™
& Hospital
Dr Max™
Dr Max™Dr Max™
Dr Max™
Dr Max™
Max Medcentre™
& Hospital
Dr Max™
Dr Max™Dr Max™
Dr Max™
Dr Max™
Max Medcentre™
& Hospital
Dr Max™
Dr Max™Dr Max™
Dr Max™
Dr Max™
Max Medcentre™
& Hospital
Dr Max™
Dr Max™Dr Max™
Dr Max™
Dr Max™
Max Hospital &Max Medcentre™
• Enable retention of patient traffic• Enable ‘start-to-finish’ comprehensive, seamless care : Consult & Diagnostics, Diagnostic
tests, pre-operative work up, operations, post-operative care.
Max Healthcare Model
Heart & VascularNeurosciencesJoint Replacement & orthopaedicsMother & ChildMinimally Invasive Surgery
Our Locations
Existing Max HospitalsDr Max Clinics & ImplantsProposed Max HospitalsTertiary care Hospital
Addressable Market
NCR:
Population 15 million; growing at 3.9% p.a.
Addressable households with income of over Rs 2.4 Lacs p.a.; 4.7 million growing at 10% p.a.
North India
Centers of excellence for top end specialties
International Markets
Medical tourism
Patient flow from neighboring countries
Service Profile: Constituents of Private Healthcare Market
Addressable Market
Current Facilities
Secondary Care Max Hospitals operational at:
Current Facilities
PANCHSHEEL PARK (February 2001)
•20 inpatient beds•1+1 OT•Full range diagnostics•PHP & OPD
PITAMPURA(February 2002)
•100 inpatient beds•2+1 OT•Full range diagnostics•PHP & OPD
NOIDA(August 2002)
•40 inpatient beds•2+1 OT•Full range diagnostics•PHP & OPD
HEART & VASCULAR INSTITUTE- SAKET
• 250 patient beds
• 3 Operation Theatres, 2 Cardiac Catheterization Labs
• Total covered area of approx.150000 sq. ft.
• Post Surgery Critical Care Unit
• High Dependency Unit
• Apex Coronary Care
• Advanced Coronary Care Unit
• Exclusive well equipped ‘Observation Bay’and ‘Post Cath. Recovery’
• Centralized Emergency Command withAdvanced Cardiac Life Support Ambulancesand Air Evacuation Service.
Operational since January 2005
Current Facilities
MAX HOSPITAL - PATPARGANJ
125 Bed Hospital; only one of its kind in East Delhi comprehensive with full range of services include
• Catheterization Lab• Non-invasive Cardiology• Mother & Child• PHP• Dialysis• Blood Bank• Traumatology• All other Specialties
Operational since May 2005
Current Facilities
600 leading Doctors• Number of Physicians on rolls – 150• Number of visiting consultants – 450
300 leading Corporate Clients
Patient base of over 220,000
70% Brand Awareness amongst target residents of NCR
Current Status
Total Targeted Bed Volume- 1400 by 2008
Operations
Jan – Mar 04(per month)
Feb – Apr 05(per month)
Average IP Admissions
Average Surgeries*
Average IP Admissions
Average Surgeries*
South Hub 200 95 221 126
North Hub 242 121 294 145
East Hub 168 69 226 84
Saket - - 228 217
*Include Procedures.
Revenue
*Projected
US$ Mn
Upcoming Facilities
Launch in December 2005Completion in end March 2006
• 225 beds (including 70 critical care beds)
• To include:
•7 OT s, 20 Consult Chambers
•Total imaging including CT & MR
•Tower Specialties – Ortho, Neuro & MIS
•DSA Lab (for Neuro Sciences)
• Emergency Services
• Estimated Project Cost – Rs 115 Crores
MAX HOSPITAL - SAKET
Upcoming Facilities
MAX HOSPITAL- GURGAON
• 100 bed Hospital with 4 OTs
• Tower Specialties to include:
• Woman & Child (incl. Infertility)
• Health Checks
• Nephrology & Urology
• Plastic & Reconstructive Surgeries
• 24-hour Chemist
• General & Minimally Invasive surgeries
Upcoming Facilities
Operational by April 2006
OPTHALMOLOGY & DENTAL CENTER - PANCHSHEEL
• Lasik ,OPD and Diagnostics.
• Dental – 3 chambers, OPG and lab.
• Support Services and Offices ( N & S)
• Training /Conference room
• Stores– accounts, LSS, HR ,MRD etc
• Operational by Oct 1st ,2005
Upcoming Facilities
Future expansion
• Saket to be scaled up to 500 beds
• Patparganj has capacity to add another 300 beds in adjoining land
• Dr Max Clinics at key locations for patient drainage into the hospitals
• Tie ups / management contracts with other smaller hospitals
Medical Assistance Collaboration with
Singapore General Hospital
• Medical
• Nursing
• Paramedical
• IT
• Telemedicine
• Facility Services
Max Healthcare – Project Cost
$ Mn.Equity
Max India LimitedCurrent 32Future 5
Warburg Pincus 31Other Foreign Investors 4
72
DebtHDFC 23Other Indian Banks/Financial Institutions 38Total Debt 61
Total Project Cost 133
Debt/Equity Ratio 0.84
INVESTS Rs. 115 CRORES AT Rs. 40 PER SHARE
WARBURG PINCUS ENHANCES STAKE IN MAX HEALTHCARE
Total Investments in Max Healthcare stands at Rs 140 Crore
Other Businesses
North America
AlabamaGeorgiaMassachusettsNew YorkNorth CarolinaTexasWisconsinArizonaFlorida
San Jose, Costa Rica
Small, concentrated population, vulnerable to range of diseasesEstablished brand and service quality
Mumbai /Delhi India
32 sites in 8 Major CitiesLarge diverse population
Latin America
NicaraguaBrazilArgentinaMexico
NEEMAN MEDICAL INTERNATIONAL
EXPANDING GEOGRAPHIES
NEEMAN MEDICAL INTERNATIONAL
Revenues slated to grow from $5 million to $50 million over next 3 years
Neeman continues to increase its therapeutic expertise and nowalso has capabilities in Ophthalmology, InterventionalCardiology, Rheumatology and Psycho Geriatrics
Customers include all major Pharma companies like GSK,Wyeth, Pfizer and CROs like Quintiles, PPD etc.
Neeman Asiaa) Already profitable, margins exceed 35%
b) Aggressively expanding capacities – tied up for research sites with
i. Indo American Cancer Hospital, Hyderabad (100 Beds; 70,000 OPDs p.a.)
ii. Mediciti Hospital, Hyderabad (150 Beds; 175,000 OPDs p.a.)
c) Favorable Patent Regulations to catalyze exponential growth
d) Impressive operating standards – first US FDA approved site in India
Neeman Latin America• Currently operating in Costa Rica and Nicaragua
• Shortly expanding to Brazil, Mexico and Argentina
• Having 13 years of Clinical Research operations
• 140 trials conducted. Audited by US FDA 5 times
Neeman USA• Located in 7 states across North America
• Working with all pharma majors as well as leading CROs
• Aggressively expanding capacities and operational capabilities
NEEMAN MEDICAL INTERNATIONAL
Steady business – generates annualized revenue of US$ 25-30Mn and positive EBITDA of US$ 3-4 Mn
100% capacity utilization – Installed capacity 8,800 tons perannum
Having niche products and exclusive customer base
High production yield
Highest return on net capital employed – 21%, better thancompetitors
BOPP Business
Thank You