Max Group splits into 3, Analjit steps down as chairman of 2 firmsbusiness Updated: Jan 15, 2016 23:03 IST
File photo of Analjit Singh, founder of the Max Group.(Ronjoy Gogoi/ HT Photo)
After a period of conservative growth plans, Max Group is finally ready to press the pedals to accelerate growth.
The group on Friday announced its demerger into three listed companies — Max Financial Services Ltd, Max India Ltd and Max Ventures and Industries Ltd. The idea behind the split is to provide investors a choice to continue to be associated with all these businesses, or with respective businesses that suit their investment objectives.
Alongside, the company’s founder, Analjit Singh, has formally stepped down from the chairmanship and board of two companies — Max Financial Services Ltd and Max India Ltd. However, Singh will remain chairman of the company’s younger venture, Max Ventures and Industries Ltd (MVIL). “I will chair the new kid, MVIL, which is virtually a startup. Now I don’t want to be seen as a promoter but as a sponsor,” Singh said at a press conference.
Singh will be the founder and chairman emeritus of Max Group and Rahul Khosla will be the new president.
HSBC India’s former chairman Naina Lal Kidwai, who joined the Max Group, will be the chairman of Max Financial Services. Singh’s son-in-law, Sahil Vachani, will be MVIL’s new MD.
The company will evaluate new ideas in the “wider world of business”, Singh said. “New wave of possibilities that is appearing in the market are driven by digital technologies, e-commerce, affordable solutions... I would be disappointed if we don’t find one new area in next 12 months to do.”
“Investors are reaching out to us and yes, there are conversations around acquisition plans. In the next nine to 18 months, there can be a lot of traction in the financial services category..,” Khosla said. “The demerger will lead to a more specific value discovery for each vertical. Also, it will provide sharper management focus to each underlying business.”
Max group recorded a consolidated turnover of Rs 14,877 crore in 2014-15. Its investor base includes institutions such as Goldman Sachs, IFC Washington, Temasek, Fidelity and New York Life.
Among other rejigs, Mohit Talwar, currently deputy MD of Max India, is being elevated to the position of MD, Max Financial Services and Max India. Rajesh Sud will be vice-chairman and MD, Max Life Insurance. He will also continue to be chairman, Max Bupa, and will lead the group’s activities in the insurance and financial services sectors. Tara Singh Vachani, CEO, Antara Senior Living, has been elevated as its MD.