Delhi-based diversified Max Group has reshuffled its top management as part of a larger organisational restructuring that would see the firm being split into three separate listed companies housing different businesses.
The firm will demerge into three business verticals—life insurance, health & allied businesses and manufacturing.
Post demerger, Max India will be renamed as Max Financial Services Ltd (MFS) which will focus solely on the group's flagship life insurance activity through its majority holding in Max Life. The second unit (Max India) will house the investments in the health verticals, including hospital chain operator Max Healthcare, health insurance JV Max Bupa and Antara Senior Living. The third spin-off will house manufacturing subsidiary—Max Speciality Films. It will be rechristened as Max Ventures and Industries Ltd (MVIL).
While promoter Analjit Singh has taken the position of founder and chairman emeritus for the group as well as two of the resulting firms MFS and Max India, he would be chairman of MVIL.
Rahul Khosla, currently managing director of Max India, would retain his organisational hierarchy as the top non-promoter in the management. Khosla, who had joined the group in 2011 from Visa, will hold the newly formed position of president, Max Group.
He will also assume various roles in the group companies as executive president of MFS besides chairman of Max India, Max Life Insurance (subsidiary of MFS) and Max Healthcare (subsidiary of Max India). He will also become a board member of MVIL subsequently. Additionally, he will continue to be on the boards of Max Bupa and Antara Senior Living (both subsidiaries of Max India) and will be a permanent invitee to the boards and committees of all Max Group companies.
Among other key group executives, Mohit Talwar, currently deputy managing director of Max India, is being elevated to the position of managing director of MFS as well as the new Max India. He will in effect lead the business operations of the key group units—life and health insurance as well as hospitals.
In addition, Talwar will become vice chairman of MVIL and chairman of its subsidiary, Max Speciality Films. He will also join the board of Max Life Insurance.
Most of the other heads of respective business units will continue to head them with new or spruced up designations, as was originally planned.
Rajesh Sud, MD and CEO of Max Life Insurance, has been redesignated as vice chairman and MD of the firm while retaining the role as chairman of health insurance firm Max Bupa. Max Bupa would be headed by Ashish Mehrotra, who taken over as MD and CEO two months back.
Rajit Mehta, who was elevated as MD and CEO of hospital chain Max Healthcare, too will retain that role.
Some promoter family members also retained their roles. Tara Singh Vachani (daughter of Analjit Singh) would remain CEO besides sporting the designation of MD of Antara while being a board member of Max India. Her husband Sahil Vachani will assume the position of MD of MVIL and as a board member of its subsidiary Max Speciality Films.
Among others, the group said Naina Lal Kidwai, who recently stepped down from HSBC India as chairperson, will join the group as chairperson of the life insurance firm's holding arm MFS.
The Max Group had a total customer base of 7.5 million, nearly 300 offices across India and 17,000 employees as of March 31, 2015. Analjit Singh holds 40.4 per cent stake in the company while other major shareholders include Goldman Sachs, Temasek, IFC and New York Life Insurance.
The firm has fixed January 28 as the record date for ascertaining the shareholders of Max India who would be allotted shares of the new companies that would be listed separately soon.