Mumbai: Insurance and healthcare major Max India targets to achieve a revenue of $5 billion by 2011-12 and has restructured its joint venture with its insurance partner New York Life Insurance, said Analjit Singh, chairman.
The company modified the terms of options available to its foreign partner for purchasing an additional 24 per cent stake in Max New York Life Insurance Company, to increase its stake to 50 per cent, he said at a press conference in Mumbai, today.
"This option will be available for a period of eight years for them and will be offered at 10 per cent discount than the market price," said Analjit Singh. The restructuring was done as part of an understanding among the partners to hold 50 per cent each in the joint venture. He explained that an option deposit was given by New York Life to Max India, and the company has paid back Rs 175 crore, a week ago. The option deposit will be used to purchase additional equity.
He said the company was expected to break even by 2011. It plans to increase the number of life insurance agents from 47,000 to three lakh and to open 215 offices every year. The target is to add 900 agency offices and 700 rural offices by 2011-12.
The company has planned a capital expenditure of Rs 3600 crore and the two promoters have already infused about Rs 1232 crore for the proposed expansion. He said the company will start a standalone new joint venture health insurance project within 15 months with Bupa Finance of UK. Bupa will have 26 per cent stake, Max India 50 per cent stake and Analjith and family will have the remaining 24 per cent stake in the new venture.
Source: Business Standard
Thursday, July 24, 2008
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