MIRA
INFORM REPORT
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Report Date : |
07.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
MAX INDIA LIMITED |
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Registered Office : |
Bhai Mohan Singh Nagar, Railmajra, Tahsil Balachur,
District Nawanshahr – 144 533, Punjab |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
24.02.1988 |
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Com. Reg. No.: |
008031 |
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CIN No.: [Company
Identification No.] |
L24223PB1988PLC008031 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTLM11648A |
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Legal Form : |
Subject is a public limited liability company. The shares of the company are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and Marketing of Pharmaceuticals and speciality
products comprising of BOPP, Metallised Films and Leather Finishing Foils. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 40130024 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and diversified company having fine track. Available information indicates high
financial responsibility of the company.
Trade relations are fair.
Financial position is good.
Payments are correct and as per commitments. The company can
be considered good for any normal business dealings. It can be
regarded as a promising business partner in a medium to long – run. |
LOCATIONS
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Registered Office/Factory : |
Bhai Mohan Singh Nagar, Railmajra, Tahsil Balachur,
District Nawanshahr – 144 533, Punjab, India |
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Tel. No.: |
91-1881-289607/289611 |
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Mobile No.: |
91-9818233816 |
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E-Mail : |
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Website : |
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Head Office : |
11th Floor, DLF Square, Jacaranda Marg, DLF City II, Gurgaon – 122 001, Haryana |
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Tel. No.: |
91-124-26561717 |
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E-Mail : |
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Corporate Office : |
Max House, 3rd Floor, 1, Dr. Jha Marg, Okhla, New Delhi – 100 020 |
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Tel. No.: |
91-11-26933601–06 |
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Fax No.: |
91-11-26933620/26324126 |
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Email: |
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Website: |
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Genral Office: |
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Overseas
Office 1 : |
Covenhan House, Downside Bridge Road, Cobham, Surrey 3 EP, UK |
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Tel No.: |
91-44 1932 862 444 |
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Fax No.: |
91-44 1932 862 445 |
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Overseas Office 2 : |
Frente al Centro Nacional De Rehabitacion (Center – La Uruca, San Jose 250-1000, Costa Rica) |
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Tel No.: |
91-506 2904242 |
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Fax No.: |
91-506 2963531 |
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Overseas Office 3 : |
110, Corning Road, Suite 130, Cary North Carolina - 27511, USA |
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Tel No.: |
91-19-19 4243302 |
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Fax No.: |
91-1- 919 852 5574 |
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Overseas Office 4 : |
5-A, Tung Shan Mansion, 11 Taiko Shing Road, Hong Kong |
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Tel No.: |
91-8-52 93172627 |
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Overseas Office 5 : |
40 Brunswick Avenue, Suite 202 B, Edison , New Jersey 008817 USA |
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Tel No.: |
91-1-7322876575 |
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Fax No.: |
91-1-7322876574 |
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Factory : |
Max Pharma
No. 18, 56 – 58, KIADB Industrial Area, Nanjangud, Mysore – 570 023, Karnataka |
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Branches 1 : |
167, Ready Money Terrace, Worli Naka, Worli, Mumbai – 400 018, Maharashtra |
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Tel. No.: |
91-22-24965358/24932003 |
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Fax No.: |
91-22-24930936 |
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E-Mail : |
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Branches 2 : |
SCO 86-87, Madhya Marg, Sector 8-C, Chandigarh – 160 008 |
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Tel No.: |
91-172-2544232/2544320/2544326 |
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Fax No.: |
91-172-2543435/2544559 |
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Other Branches: |
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DIRECTORS
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Name : |
Mr. Analjit Singh |
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Designation : |
Chairman |
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Date of Birth/Age : |
53 years |
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Experience : |
29 years |
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Qualification : |
BA, BS, MBA, (Boston) |
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Date of Appointment : |
30.10.2001 |
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Name : |
Dr. S. S. Baijal |
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Designation : |
Director |
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Name : |
Mr. Ashwani
Windlass |
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Designation : |
Director |
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Name : |
Mr. N. C. Singhal |
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Designation : |
Director |
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Name : |
Mr. Bharat Sahgal |
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Designation : |
Director |
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Name : |
Mr. Rajesh Khanna |
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Designation : |
Director |
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Name : |
Mr. N. Rangachary |
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Designation : |
Director |
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Name : |
Mr. Piyush Mankad |
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Designation : |
Director |
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Name : |
Mr. Nitin Sibal |
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Designation : |
Director |
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Name : |
Mr. B.
Anantharaman |
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Designation : |
Joint Managing
Director |
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Date of Birth/Age : |
52 years |
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Experience : |
28 years |
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Qualification : |
B. Com, FCA, FICWA, FCS |
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Date of Appointment : |
07.02.2001 |
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Name : |
Mr. Anuroop Singh |
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Designation : |
Director |
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Name: |
Mr. Neeraj Basur |
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Designation : |
Director |
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Date of Birth/Age : |
38 years |
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Experience : |
15 years |
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Qualification : |
M. Com, ACA, ACS |
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Date of Appointment : |
01.05.2002 |
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Name : |
Mr. Kaushik P.K. |
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Designation : |
Director |
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Date of Birth/Age : |
56 years |
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Experience : |
35 years |
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Qualification : |
B. Sc, LPRI |
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Date of Appointment : |
09.10.1989 |
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Name : |
Mr. Mathur S. K. |
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Designation : |
Director |
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Date of Birth/Age : |
54 years |
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Experience : |
31 years |
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Qualification : |
B.Tech, PGDBM |
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Date of Appointment : |
06.10.2005 |
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Name : |
Mr. Prabhat Nagr |
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Designation : |
Director |
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Date of Birth/Age : |
51 years |
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Experience : |
28 years |
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Qualification : |
B.Com, LLB |
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Date of Appointment : |
17.08.2004 |
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Name : |
Mrs. Sujatha Ratnam |
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Designation : |
Director |
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Date of Birth/Age : |
43 years |
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Experience : |
18 years |
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Qualification : |
B. Com, ACA |
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Date of Appointment : |
12.07.2004 |
KEY EXECUTIVES
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Name : |
Mr. V. Krishnan |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Category |
No. of Share held |
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Indian Promoters |
166002 |
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Persons acting in
concert |
11649957 |
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Non-Promoters
Holding |
11248201 |
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Mutual Funds and
UTI |
248769 |
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Bank, Financial
Institutions |
176157 |
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FIIS |
556 |
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Private Corporate
Bodies |
748450 |
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Indian Public |
7372151 |
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NRIs/OCBs |
2702118 |
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BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of Pharmaceuticals and speciality
products comprising of BOPP, Metallised Films and Leather Finishing Foils. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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BOPP Film |
Tonnes |
29.150 |
15182.96 |
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Soft Leather Finishing Foil |
Millions [SFT] |
32.000 |
11.890 |
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GENERAL
INFORMATION
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No. of Employees : |
3000 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Associates |
New York Life International Inc., U.S.A. Singapore General Hospital, Singapore Harvard Medical International, U.S.A. HealthScribe Inc., U.S.A. Hutchison Telecommunications Limited, Hong Kong (Group Company of DSM, The Netherlands) (Group Company of Lockheed Martin Inc., U.S.A.) Alta Cast LLC Atotech Decutschland, GmbH, Germany. Atotech India Limited Avnet Inc., U.S.A. Avnet Max Limited Comsat Investments Inc., U.S.A. DSM Anti Infectives India Private Limited Gist Brocades International B. V., The Netherlands. MindCrossing Inc., U.S.A. Pharmax Corporation Limited Liquid Investments and Trading Company New Delhi House Services Limited Transmoney Express Private Limited Neeman International (Asia) Limited Medicare Investments Limited Maxopp Investments Limited Cheminvest Limited Pen Investment Limited Pivet Finances Limited Gaylord Impex Limited Lakeview Enterprises Delhi Guest House Private Limited Argus Finance Limited Ajay Bahl and Company |
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Subsidiaries: |
Comsat Max Limited Costa Rica Curacao Healthscribe India Limited Malsi Estates Limited Max Asia Pac Limited Max Ateev Limited Max Estates Limited Max Healthcare Institute Private Limited Max Medical Services Private Limited Max New York Life Insurance Company Limited Max Telecom Ventures Limited Max UK Limited Max Visions Inc., U.S.A. Neeman ICIC SA Neeman Medical International B.V. Neeman Medical International Inc., U.S.A. Neeman Medical International N. V. Neeman Medical International N.V. Neeman Medical International Plc. U.K. |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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460000000 |
Equity Shares |
Rs. 2/- each |
Rs. 920.000
millions |
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800000 |
Preference Shares |
Rs.100/-each |
Rs. 80.000
millions |
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TOTAL |
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Rs. 1000.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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179902055 |
Equity Shares |
Rs. 2/- each |
Rs. 359.804 millions |
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Notes:
Paid up
Share Capital includes:
- 5,76,60,400 Equity Shares of Rs. 2/- each (Previous year
1,15,32,080 Equity Shares of Rs. 10/ each) allotted as fully paid up by
way of bonus shares out of Securities Premium Account; and
- 9,88,330 Equity Shares of Rs. 2/- each (Previous year 1,96,150
Equity Shares of Rs.10/- each) allotted under employees stock option plan
INANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
359.804 |
349.103 |
272.486 |
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2] Warrants against Share Capital |
0.000 |
24.372 |
81.558 |
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3] Reserves & Surplus |
9672.702 |
9222.303 |
5285.890 |
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NETWORTH |
10032.506 |
9595.778 |
5639.934 |
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LOAN FUNDS |
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1] Secured Loans |
1008.423 |
220.000 |
321.600 |
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2] Unsecured Loans |
0.000 |
1331.821 |
1758.718 |
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3] Loans and
Debentures |
6.182 |
0.000 |
0.000 |
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4]Advance from
others |
1742.055 |
0.000 |
0.000 |
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TOTAL BORROWING |
2756.660 |
1551.821 |
2080.318 |
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DEFERRED TAX LIABILITIES |
110.489 |
52.450 |
80.071 |
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Advance from Others |
0.000 |
0.000 |
0.000 |
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TOTAL |
12899.655 |
11200.049 |
7800.323 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1674.829 |
549.814 |
596.475 |
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Capital work-in-progress |
39.171 |
79.608 |
4.430 |
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INVESTMENT |
10582.780 |
10249.760 |
6454.554 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
133.361 |
113.476 |
106.811 |
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Sundry Debtors |
297.063 |
216.614 |
217.987 |
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Cash & Bank Balances |
81.496 |
49.017 |
73.362 |
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Other Current Assets |
0.000 |
5.403 |
65.969 |
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Loans & Advances |
464.667 |
657.576 |
664.689 |
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Total
Current Assets |
976.587
|
1042.086 |
1128.818 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
374.036 |
292.001 |
340.162 |
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Provisions |
63.012 |
431.698 |
66.966 |
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Total
Current Liabilities |
437.048
|
723.699 |
407.128 |
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Net Current Assets |
539.539
|
318.387 |
721.690 |
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MISCELLANEOUS EXPENSES |
63.336 |
2.480 |
23.174 |
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TOTAL |
12899.655 |
11200.049 |
7800.323 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
1553.448 |
1478.768 |
1391.914 |
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Other Income |
124.900 |
0.000 |
0.000 |
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Total Income |
1678.348 |
1478.768 |
1391.914 |
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Profit/(Loss) Before Tax |
204.244 |
35.150 |
64.543 |
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Provision for Taxation |
62.043 |
(23.733) |
59.266 |
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Profit/(Loss) After Tax |
142.201 |
58.883 |
5.277 |
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Earnings in Foreign Currency : |
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Export Earnings |
308.117 |
204.195 |
258.728 |
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Total Earnings |
308.117 |
204.195 |
258.728 |
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Imports : |
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Raw Materials |
1124.789 |
196.561 |
154.056 |
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Others |
0.000 |
0.000 |
0.000 |
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Total Imports |
1124.789 |
196.561 |
154.056 |
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Expenditures : |
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Manufacturing and Other Expenses |
1654.349 |
0.000 |
0.000 |
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Financial Expenses |
49.177 |
0.000 |
0.000 |
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Depreciation & Amortization |
57.608 |
0.000 |
0.000 |
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Other Expenditure |
0.000 |
1443.618 |
1327.371 |
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Total Expenditure |
1761.134 |
1443.618 |
1327.371 |
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QUARTERLY / SUMMARISED
RESULTS
|
PARTICULARS |
|
30.06.2007 1st Quarter |
30.09.2007 2nd Quarter |
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Sales Turnover |
|
482.600 |
721.200 |
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Other Income |
|
133.500 |
255.700 |
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Total Income |
|
616.100 |
976.900 |
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Total Expenditure |
|
521.500 |
728.500 |
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Operating Profit |
|
94.600 |
248.400 |
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Interest |
|
33.200 |
36.600 |
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Gross Profit |
|
61.400 |
211.800 |
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Depreciation |
|
27.300 |
28.500 |
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Tax |
|
1.200 |
14.800 |
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Reported PAT |
|
38.100 |
169.200 |
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KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt Equity Ratio |
0.22 |
0.24 |
0.37 |
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Long Term Debt
Equity Ratio |
0.21 |
0.21 |
0.28 |
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Current Ratio |
1.25 |
1.14 |
1.12 |
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TURNOVER RATIOS |
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Fixed Assets |
1.08 |
1.37 |
1.27 |
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Inventory |
14.21 |
12.85 |
12.09 |
|
Debtors |
6.83 |
6.51 |
6.07 |
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Interest Cover
Ratio |
4.08 |
0.92 |
0.94 |
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Operating Profit
Margin (%) |
14.74 |
10.52 |
14.98 |
|
Profit Before
Interest and Tax Margin (%) |
11.45 |
6.21 |
10.24 |
|
Cash Profit Margin
(%) |
9.25 |
5.46 |
4.08 |
|
Adjusted Net
Profit Margin (%) |
5.97 |
1.15 |
[0.67] |
|
Return on Capital
Employed (%) |
1.68 |
0.94 |
1.88 |
|
Return on Net
Worth (%) |
1.07 |
0.22 |
[0.17] |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY :
The company obtained the Certificate of Commencement of Business on 8th April, 1982.
Subject was promoted by Bhai M Singh and Analjit Singh as a public limited company. Maxxon India, promoted by the company, was merged with it in 1993.
Subject was incorporated for manufacturing of 6-amino penicillinic acid. It was promoted by Bhai Mohan Singh and Analjit Singh in the joint sector with Punjab State Industrial Development Corporation Limited at Ropar, Punjab. In the year 1987, the company commenced manufacturing of 7-ADCA with technology arrangement with Chementechno, Italy. In the year 1989, the company promoted Maxxon India Limited for manufacturing of BOPP films, Maxxon was merged with the company in 1993 as the former made huge losses.
Subject is a well-diversified company with interests in speciality chemicals,
BOPP film, electronics, telecom and pharmaceuticals through its various joint
ventures and subsidiaries. The company
has joint ventures with Gist Brocades International for penicillin and penicillin-based
bulk drugs; Hutchison Telecommunications for cellular phones and paging
services; Comsat Investment for VSAT services, etc.
In December, 1995, it came out with a rights issue to set up a multi-purpose
chemical synthesis plant to manufacture a wide range of bulk drugs; to set up a
facility to manufacture high-quality leather finishing foils and for strategic
investments in telecommunications and pharmaceuticals. The estimated project
cost was Rs. 1460 millions.
In September, 1995, the company commissioned cellular phone services in Mumbai. In April 1996, Max Pharma began commercial production at its Rs 350 millions bulk drugs plant at Nanjangud. In March 1996, Max Electronics formed a joint venture with Atotech, The Netherlands, for PCB plating and general metal finishing chemicals.
Subject has entered into an alliance with Harvard Medical International (HMI),
a non-profit subsidiary of the Harvard University for setting up of two
speciality hospitals in New Delhi at an investment of Rs. 2000 millions. It is also setting up a joint venture
company, Max Avnet, to establish a design centre for products on consumer,
computer and telecom products. The
company will hold 40% stake while the rest 60% would be held by the foreign
partner.
Max Corporation (MCL), a wholly owned subsidiary of the company has been
amalgamated with it with appointed date July, 1, 1999. MCL stood dissolved
without winding up, and all assets and liabilities of MCL were transferred to
and vested with the company effective January, 14, 2000.
The company too forayed into insurance sector by making Joint Venture with
Fortune 100, company "New York Life Insurance Company (NYLI). In the
Healthcare sector, the company, had decided to take stake of 21.9% in AltaCast
/ HealthCast LLC to enter in healthcare sector.
In February, 2001, the company has struck a deal with the Dutch pharma giant
DSM for offloading its 21% stake in their joint venture - Max GB - to the
latter. It has hived off its newly set up IT services and e-business solutions
division into a new subsidiary company, called Max Ateev, and all its IT and IT
infrastructure-related subsidiaries have been brought under one business group.
Subject had collaborated with MindCrossing Inc. U.S.A. to tap the business opportunity
for e-business and also enter into B2B e-business market by acquiring 15% stake
in that company.
In 1990, the company entered into technical collaboration with Schering AG, Germany for plating chemicals for PCBs in India. In 1991-92, the company entered into pharmaceutical operations and entered into an arrangement with Pharmax Corporation Limited for supply of formulation. The company has also tie up with Upjhon, U.S.A. for marketing of its formulations in India. In 1993, the Beta-lactum facilities (7-ADCA) were transferred to Max GB, a joint venture between the company and Royal Gist-Brocades, The Netherlands. In 1997, the company divested its 40% stake in Hutchison Max Telecom Limited. In 1998, the company transferred its electronics division to Avnet Max in joint venture with Avnet Inc., U.S.A.
In December 1995, company came out with a rights issue to set up a multi-purpose chemical synthesis plant to manufacture a wide range of bulk drugs, to set up a facility to manufacture high quality leather finishing foils and for strategic investments in telecommunications and pharmaceuticals. The estimated project cost was Rs. 1460 millions.
The company commissioned cellular phone services in Mumbai In September 1995. In April 1996 Max Pharma began commercial production at its Rs. 350 millions bulk drugs plant at Nanjagud. Max Electronics formed a joint venture with Atotech, The Netherlands, for PCB plating and general metal finishing chemicals.
RESULTS OF
OPERATIONS
Fiscal 2006-07 represents a major growth milestone for their company. During the
year, Max speciality products (MSP) commissioned its 3rd BOPP
production line, which enhanced its production capacity from around 9000 tonnes
per annum to 29,000 tonnes per annum. This capacity expansion will enable MSP
to regain its market share and strengthen its position as a niche player in
high-end speciality packaging films segment. During the year, MSP registered an
impressive 24% yearon- year growth in its gross sales. Sales volume of BOPP
films grew by 17.5% at 11,985 tons as compared to 10,200 tons in 2005-06.
During 2006-07, sales volume of metalised films and thermal films grew by
around 26% and around 65% respectively over the previous year, in line with
MSP's focus on high contribution and high value-addition products. As part of
its strategy to expand its footprint outside India, MSP registered 47% growth
in export sales of BOPP films from Rs. 199.700 Millions in 2005 06 to Rs.
294.400 Millions in 2006-07. All the production lines operated at 100% capacity
utilization. Additionally, the business continued to improve its operational
efficiencies with a strong focus on quality parameters.
Raw material prices continued their increasing trend during
the year due to increase in global crude prices. Further, the competitive
landscape became stiffer with an overall addition of 35°/o BOPP production
capacity during 2006-07. However, as a result of optimization of its production
processes and continuing improvements in production efficiencies, MSP was able
to minimize fall in its contribution margins as compared to previous year.
During the year, MSP also commissioned its 3rd metalliser in
August, 2006, one month ahead of its schedule. Further, in order to augment its
presence in high value added segment, MSP is in the process of installing a
second thermal coating line with an annual capacity of 144 million square
meters, which is expected to get commissioned in September, 2007. Sales volume
of leather finishing foil division of MSP increased by 14% from 965 thousand
sq. meters to 1101 thousand sq. meters. Major portion of increased volume of
foil came from exports. Exports increased by 72% at 340 thousand sq meter in
2006-07 from 198 thousand sq meter in 2005-06.
Profit before tax was Rs. 204.200 Millions in the current
year as compared with Rs. 35.200 Millions in the previous year. The reserves of
their company increased from Rs. 9222.300 Millions as of March 31, 2006 to Rs.
9672.700 Millions as of March 31, 2007. Service and other income for the current
year includes income of Rs. 218.100 Millions from treasury corpus with the
company and Rs. 50.500 Millions arising from the divestment of their company's
stake in subject and malsi estate limited erstwhile subsidiaries.
The operating subsidiaries of their company continued to do
well, made excellent progress and posted robust business performance for the
year under review. A brief update on the business achievements of their
company's key operating subsidiaries is provided below:
Max New York Life Insurance Company Limited:
Max New York Life Insurance Company Limited (MNYL) continues
to rank amongst the top quartile of private life insurance companies in India.
MNYL ranked number 4 amongst private life insurers in FY 2006-07 in terms of
the number of policies sold. During the year under review, MNYL grossed premium
income of Rs.15000.000 Millions recording a growth of 90% over the previous
year. The first year premium increased to Rs. 9120.000 Millions, as compared to
Rs. 4710.000 Millions in the previous financial year. MNYL has around 1.1
million policies in force as at March 31, 2007 with over 550,000 policies sold
during the year. MNYL expanded its distribution capacity by taking its agent
strength to around 25,000 as of March 31, 2007 and added 60 sales offices
during 2006-07 taking the total number of offices to 165 spread over 121
locations in India. As of March 31, 2007, the sum assured in force was around
Rs. 450.000 Millions. The agency distribution channel, which is the primary
distribution channel for the company, recorded a growth of 106% with first
year's new business sales from this channel at Rs. 6500.000 Millions in 2006-07
due to increased geographical coverage, better penetration in the existing
geographies and improved productivity of agents.
Max Healthcare:
Max Healthcare (MHC) provides comprehensive, integrated and
world-class healthcare services with state-of-art infrastructure designed in
accordance with international norms. Max Healthcare owns and operates a network
of five hospitals, two speciality medical centers and nine clinics/implants
located in new delhi and surrounding NCR region. Two super specialty hospitals
in its network located at saket in new delhi have been accredited with NABH
certification for patient care. It continues to improve its healthcare
infrastructure and equipment through acquisition of sophisticated healthcare
equipment such as the brain SUITE, 64 slice CT Angio as well as other modern
equipment, thereby improving outcomes for patients. As of March 31, 2007, MHC
had approximately 1,250 physicians, of which approximately one-third were
full-time employees, including several doctors of international repute. MHC
follows a model aimed towards healthcare excellence based on focused management
and leadership, established systems and protocols, professional development for
its healthcare professionals through continuing medical education and training
courses, superior infection control and patient safety measures, stringent
audit measures, continuous monitoring of patient feedback as well as nquality
patient care.
During the year ended March 31, 2007, MHC's network of
hospitals performed 790 cardiac surgeries, 1,490 angioplasties and 3,025
angiographies. In addition, during the year these hospitals performed 1,600
ortho surgeries, 495 neuro-surgeries and 5,925 general surgeries. From 663 beds
across its network of five hospitals, MHC intends to increase its capacity to
over 1,200 within next three years. In addition, a 108-bedded multi-speciality
healthcare facility commenced operations in July 2007 at Gurgaon, Haryana. In
fiscal 2007, the average occupancy rate for MHC's network of hospitals was
approximately 63.5% of the operational beds as compared to
56.3% in last fiscal. During 2006-07, MHC's network of
hospitalsb generated total income of Rs. 2450.000 Millions, a growth of 79%
over Rs. 137 crore in 2005-06. As of March 31, 2007, MHC had a patient base of
more than 400,000 patients. In the last quarter of fiscal 2007, MHC averaged
over 100,000 patient episodes per month.
Neeman Medical International:
Neeman Medical International (NMI) is a contract research
organization that provides a broad range of clinical research services, to a
cross section of pharmaceutical and biotechnology companies as well as other contract
research organizations. NMI augments the research and development activities of
pharmaceutical and biotechnology companies by offering high quality, value
added clinical research services to reduce drug development time and expense.
During 06-07, NMI enhanced its services spectrum from existing phase-ll,
phase-Ill and phase-IV clinical trial design and management and site management
services to monitoring of trials, clinical data management, bio-statistical
analysis, medical report writing and supply chain management of clinical trial
material.
During 2006-07, NMI shifted its delivery base in India and
its US office focus on business development initiatives. Further, various adverse
business conditions and continued operating losses led NMI decide to cease its
operations in costa rica in October, 2006. During the fiscal 2007, NMI provided
services to 21 clients over 45 contracts. During fiscal 2007, NMI doubled its
client base to 29 from 14 in fiscal 2006. NMI increased its employee base to
102 as on March 31, 2007 from 77 as on March 31, 2006. As of March 31, 2007,
NMI had several active contracts representing an income of approximately US$
2.3 million over the remaining life of those contracts.
Max Healthstaff:
Max HealthStaff (MHS) provides value added end-to-end
placement solutions of healthcare resources in the U.S. currently, MHS provides
solutions relating to nursing staff, through strategic alliances with multiple
healthcare staffing companies in the U.S. MHS sources and enrolls nurses from
various cities in India, including new delhi,
chandigarh, Kottayam (Kerala) and Chennai. These cities
represent regions with a traditionally strong supply of nurses. upon
enrollment, MHS provides training support to these nurses, assists them to take
certain examinations, facilitates their immigration process to enable them to
work in a U.S. hospital setting in a clinical area of their expertise.
Since inception, MHS has enrolled over 1,000 nurses into its
training and placement programs, of which more than 50 nurses have been placed
with staffing companies in the U.S. since November 2005.
As of March 31, 2007, an additional 137 nurses were in the
different stages of immigration process. Number of billable nurses placed with
MHS staffing partners increased from 23 in the year 2005-06 to 52 in the year
2006-07 resulting into increase of revenue of MHS by 351.8% from Rs. 5.600
Millions in 2005-06 to Rs. 25.300 Millions in 2006-07.
WEBSITE DETAILS
PRESS RELEASES
Max India Dismisses news reports of sale of
its healthcare business
New Delhi, 6th November 2006
Max India refers to the news report that appeared in the Economic Times of Nov
4, 2006 of the purported sale of its healthcare subsidiary, Max Healthcare
Institute Limited
This news report is totally baseless and factually incorrect.
The group wishes to affirm to all its employees, shareholders, customers and
other stakeholders that this news item is seen as mischievous. The company or
its officers have neither been in contact with anyone in the ADAG group or for
that matter any other party, for the sale of its healthcare business.
To the contrary as already reported in their latest investor release the
company has reported robust growth for Max Healthcare and plans are afoot to
expand the business both within and beyond the National capital region.
This clarification is all the more necessary as both Healthcare and Life
Insurance are businesses of Trust and such misleading information is
detrimental to the reputation of the Company.
Max Telecom Ventures to divest its stake in Hutchison Essar Telecom
- to receive Rs. 6570 millions at Rs. 607 per share –
New Delhi, 18th October 2005
Max Telecom Ventures Limited (MTVL), a subsidiary of Max India today announced its decision to divest its entire 3.16% stake in Hutchison Essar Telecom to Essar Teleholdings Limited for an all cash deal aggregating Rs. 6570 millions at a sale price of Rs. 607 per share. MTVL today signed a MoU in this regard. The proposed sale is subject to ratification and approval by the Board of Max India Limited
Max India Limited holds 60.8% stake in MTVL while 39.2% is held by Il and FS
Trust Company Limited
Mr. B. Anantharaman, Joint Managing Director, Max India Limited said,
"Hutchison Essar Telecom has created tremendous value for its
stakeholders. By exiting the investment, MTVL has optimized value creation for
its shareholders." "Max India takes great pride having created a
fundamentally strong telecom business in Mumbai, which now forms the backbone
of Hutchison Essar Telecom." "Divestment of this stake is a strategic
decision and will mark a complete exit of Max India from the telecom sector
", he added.
Press Releases
Max India announces results for the quarter ended September
30, 2007
Strong
Quarter-on-Quarter Performance...
- Consolidated Revenue at Rs. 8450.000 Millions, up 100% -
- Operating Cash Profit at Rs. 2270.000 Millions, up 104% -
- Group investments at Rs. 39.580 Millions up 153% -
- Life Insurance Business: peak capital commitment increased from Rs.
10.000 Millions to over Rs. 26.000 Millions
- Healthcare Business: Reports positive EBITDA; another secondary
hospital with 108 beds commissioned in Gurgaon
- Speciality plastic products: New BOPP line of 20,000 tpa
commissioned in March’07 achieves stabilization and high capacity
utilization; Second thermal coating line commissioned
New
Delhi, October 29, 2007
Subject today announced its un-audited results for the
quarter and six months ended September 30, 2007.
The company has reported consolidated revenue of Rs. 15.460
Millions during six months ended September 30, 2007 as against Rs. 7540.000
Millions in the corresponding previous period, a growth of 105%. Consolidated
revenue for the quarter ended September 30, 2007 at Rs. 8450.000 Millions grows
100% as against Rs. 4230.000 Millions in the corresponding previous quarter.
Operating cash profit at Rs. 4320.000 Millions during six months
ended September 30, 2007 as against Rs. 1870.000 Millions in the corresponding
previous period, a growth of 131%. Operating cash profit for the quarter ended
September 30, 2007 grows 104% at Rs. 2270.000 Millions as against Rs. 1110.000
Millions in the corresponding previous period.
Group Investments as at September 30, 2007 at Rs. 39.580
Millions against Rs. 15.670 Millions as at September 30, 2006 grows 153%.
Commenting on the results, Mr. B. Anantharaman, Joint Managing Director, Max India Limited, said,
“Their life insurance and healthcare businesses have done exceedingly well
riding on the strong macro economic environment and favorable demographic
profile. We expect these businesses to continue reporting impressive growth
going forward as well, in line with their strategic plans. We have armed
ourselves with necessary capital required to support growth in these
businesses.”
Max New York Life
Gross premium income of for the quarter ended September 30, 2007
at Rs. 5390.000 Millions grows 85% year-on-year. Annualized First Year Premium
(new sales) for the quarter at Rs. 3160.000 Millions grows 72% year-on-year.
The company has over 1.3 million policyholders with 160,000 policies sold
during the quarter. Sum assured in force as at September 30, 2007 around US$ 14
billion (Rs. 543 billion) has grown 62% year-on-year. The shareholders infused
Rs. 750.000 Millions as fresh capital in the quarter taking the total
capitalization of the business to Rs. 8070.000 Millions.
“Encouraged by impressive performance of the life insurance
business since inception, the Company has committed itself to strong growth
plans for the business. The shareholders of MNYL have increased the peak
capital commitment for the business from Rs. 10.000 Millions to over Rs. 26.000 Millions We will invest
over Rs. 18.000 Millions in the
business in next 3 years. This will see MNYL adding around 90-100 offices every
year going forward and increasing its distribution strength to over 200,000
agents in next four to five years. The enhanced capital commitment will allow
MNYL to support its continuing rapid growth”, Mr. Anantharaman added.
Max Healthcare
Max Healthcare has turned EBITDA positive. Considering that
the two tertiary care hospitals are just around 2 years old, the financial
performance of these hospitals has been far better than the industry norms.
Revenue across network of hospitals for the quarter ended September 30, 2007 at
Rs. 92 crore grows 56% year-on-year. Healthcare business reported positive
EBITDA of Rs. 5 crore during the quarter against negative Rs. 6 crore during
the same quarter previous year. MHC has around 1,250 doctors in its network,
including 538 doctors on its rolls. With the total patient transactions during
the quarter averaging at over 140,000 patients a month, the average occupancy
across all healthcare care facilities is at 64%. MHC has a registered patient
base of over 500,000 patients.
Max Speciality Products (MSP)
The third production line, barely 6 months old is already
being operated at around 85% capacity utilization. Early in October, the second
thermal coated film line plant got operationalized. Revenue for the quarter
ended September 30, 2007 at Rs. 78 crore grows 81% year-on-year. PBT for the
quarter at Rs. 60.000 Millions grows 115% year-on-year. EBITDA margin for the
quarter improved to 16% with return on capital employed maintained at 18%.
Subject is a multi-business corporate, driven by the spirit
of Enterprise, focused on Knowledge, People and Service oriented businesses of
Life Insurance (Max New York Life Insurance), Healthcare (Max Healthcare), and
Clinical Research (Neeman Medical International). Subject other businesses are
Specialty Plastic Products for the packaging industry (Max Speciality Products)
and Healthcare Staffing (Max HealthStaff).
Max New York Life
(MNYL) is a joint venture between New York Life, a Fortune 100 company and Max
India Limited. MNYL has positioned itself firmly on the quality platform. In
line with its vision ‘To be the most admired life insurance company in India’,
it has developed a strong corporate governance model based on the core values
of excellence, honesty, knowledge, caring, integrity and teamwork.
MNYL has established a robust distribution network across the country. With 175
offices in 122 locations and more than 28,500 agent advisors, 17 bancassurance
relationships, 14 corporate agents and around 450 people strong direct sales
team, the company has built a robust distribution network to support strong
growth.
Max Healthcare (MHC) is
one of India’s leading provider of 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.
MHC operates eight healthcare centers in the NCR, offering services in over 30
medical disciplines with super speciality services in Cardiac care,
Neurosciences, Orthopaedics, Paediatrics, and Obstetrics and Gynaecology.
As part of its network, MHC operates two tertiary care
hospitals at Saket. Both the hospitals have recently received NABH
accreditation, two of only seven hospitals in India to receive such
accreditation until now.
Neeman Medical International
(NMI) is a Clinical Research services provider offering a various services
across the value chain of new drug development to a growing list of
pharmaceutical, biotech and CRO clients, in India and abroad. NMI continues to
focus on developing alliances with mid sized pharma and biotech companies to
transition their drug development work to India. NMI continues to focus on
building business development pipeline through organic measures and intends to
explore inorganic growth options as well.
Max Speciality Products
(MSP) specializes in manufacturing of wide range of sophisticated barrier and
packaging films. The BOPP division of MSP has an installed capacity of 29,000
tons per annum. MSP’s leather finishing foil business division manufactures a
range of leather finishing and laminating foils. MSP has recently
commissioned a new thermal coating line with a capacity of 144 million square
meters.
Max HealthStaff International
(MHS) is an international healthcare staffing company, founded on world class
quality and service excellence. It is committed to be India’s leading
healthcare staffing company, placing professionals at healthcare institutions
in India and abroad. MHS offers a comprehensive overseas nursing program to
Indian nurses. MHS operates its business through 7 training centers located
in Delhi, Chandigarh, Kottayam and Chennai.
Max India raises fresh capital
Rs. 10000.000 Millions raised through Qualified
Institutional Placement (“QIP”)
- Max India’s offering is the second largest QIP –
- Broad based investor participation through a global road show-
New Delhi, June 20, 2007: Max
India today announced that it has raised Rs. 10000.000 Millions through a QIP,
which was subscribed 2.3 times by broad based investors, spread globally.
Investors having long-term horizon subscribed around 80% of the offering. CLSA
acted as the sole book runner and global coordinator for the issue.
The QIP raises FII holding in the company to 39% from around 26% earlier. Max
India has an investment limit of 49% for FIIs.
Mr. B. Anantharaman, Joint Managing Director, Subject,
said, “They chose to go for a global road show in order to spread thematic
awareness about the core sectors they are in and also share robust growth and
impressive progress made by each of our businesses with a large number of
investors. They met over 100 potential investors over the course of the road
show in India, Singapore, Hong Kong, UK, Germany and North America and one out
of every four investors we met submitted a bid.”
“Strong sectoral growth prospects, increasing awareness of the Indian economy
coupled with the robust performance of their Life Insurance and Healthcare
businesses attracted the attention of these investors. The above, along with
the credibility and reputation enjoyed by the Max Group enthused the
cross-section of potential investors to a large extent”, Mr. Anantharaman added.
The company has issued 41,666,660 new shares at a price of Rs. 240/- per share.
Each share of Max India has a face value of Rs. 2/- and therefore, the new
shares have been issued at a premium of Rs. 238/- per share. The new shares
aggregate 18.8% of the fully diluted equity base of the company. About 40 % of
the allocation went to US based investors while the remainder was split evenly
between Asia and Europe based investors.
Subject plans to use the net proceeds from this issue to meet its additional
funding requirements in line with its strategic business plans to further grow
each of its existing businesses. A portion of the proceeds is also expected to
be used for general corporate purposes including acquisitions and investments
in new ventures.
Encouraged by an almost 100% CAGR of its life insurance business since
inception, the company has committed itself to growth plans for this business.
As per SEBI regulations
governing QIPs, the shares can be placed with only 49 investor accounts
(including any sub-account). The final allocation of shares was made by Max
India to a group of 24 investors represented by 42 investment accounts.
Max India is a multi-business corporate, driven by the spirit of Enterprise,
focused on Knowledge, People and Service oriented businesses of Healthcare (Max
Healthcare), Life Insurance (Max New York Life Insurance), and Clinical
Research (Neeman Medical International). Max India’s other businesses are
Specialty Plastic Products for the packaging industry (Max Speciality Products)
and Healthcare Staffing (Max HealthStaff).
Max New York Life (MNYL) is a joint venture between New York
Life, a Fortune 100 company and Max India Limited. MNYL has positioned itself
firmly on the quality platform. In line with its vision ‘To be the most admired
life insurance company in India’, it has developed a strong corporate
governance model based on the core values of excellence, honesty, knowledge,
caring, integrity and teamwork.
MNYL has established a
robust distribution network across the country. With 165 offices in 121
locations and more than 25,000 agent advisors, 17 bancassurance relationships,
14 corporate agents and around 300 people strong direct sales team, the company
has built a robust distribution network to support strong growth.
Max Healthcare (MHC) is one of India’s leading provider of
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. MHC operates seven healthcare
centers in the NCR, offering services in over 30 medical disciplines with super
speciality services in Cardiac care, Neurosciences, Orthopaedics, Paediatrics,
and Obstetrics and Gynaecology.
As part of its network, MHC operates two tertiary care hospitals at Saket. Both
the hospitals have recently received NABH accreditation, two of only five
hospitals in India to receive such accreditation until now.
MHC commissioned its 4th secondary hospital in Gurgaon in June’07 taking the
total number of healthcare facilities under its management to 8 in the NCR
region. MHC has embarked upon the next phase of its expansion, which will
involve addition of 3 new hospitals, 2 in the NCR region and 1 in Dehradun.
These expansion plans are expected to be completed by mid 2009 and are expected
to add 450 additional patient beds taking the overall number of patient beds
under MHC’s management to over 1,200.
MHC has secured approval from IFC Washington to fund its Phase II expansion. Of
the total Rs. 3000.000 Millions approved by IFC, Rs. 500.000 Millions will be
infused by way of fresh equity investment in MHC and the remaining Rs. 2500.000
Millions will be injected through preferential capital. This proposal is
currently awaiting approval of the Ministry of Finance.
Neeman Medical International (NMI) is a Clinical Research
services provider offering a various services across the value chain of new
drug development to a growing list of pharmaceutical, biotech and CRO clients,
in India and abroad. NMI continues to focus on developing alliances with mid
sized pharma and biotech companies to transition their drug development work to
India. NMI continues to focus on building business development pipeline through
organic measures and intends to explore inorganic growth options as well.
Max Speciality Products (MSP) specializes in manufacturing of
wide range of sophisticated barrier and packaging films. The BOPP division of
MSP has an installed capacity of 29,000 tons per annum. MSP’s leather finishing
foil business division manufactures a range of leather finishing and laminating
foils. MSP has recently concluded its capacity enhancement program, which
resulted in the overall capacity getting trebled by adding a state of the art
new production line.
Max HealthStaff International (MHS) is an international
healthcare staffing company, founded on world class quality and service excellence.
It is committed to be India’s leading healthcare staffing company, placing
professionals at healthcare institutions in India and abroad. MHS offers a
comprehensive overseas nursing program to Indian nurses. MHS operates its
business through 7 training centers located in Delhi, Chandigarh, Kottayam and
Chennai.
Fixed Assets:
- Land (Freehold)
- Building
- Leasehold Improvements
- Plant and Machinery
- Furniture, Fittings and Equipments
- Vehicles
- Software
- Previous Years
- Capital Work in Progress
CMT REPORT (Corruption,
Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.47 |
|
UK Pound |
1 |
Rs.80.09 |
|
Euro |
1 |
Rs.57.65 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|