Rejig @ Max

Analjit Singh is stepping down as chairman of Max India and leaving its board as part of a three-way split as he hands over charge of the group he founded to professional management led by Rahul Khosla.
The elaborate process will result in three entities -Max Financial Services Ltd (MFSL), Max India Ltd and Max Ventures and Industries Ltd (MVIL) -each of them housing components of the group, according to a statement issued to the exchanges. Veteran banker Naina Lal Kidwai will join as chairman of MFSL, having recently stepped down as chairman of HSBC India. Singh will be chairman emeritus Max Group. Khosla, now managing director of Max India, will become president, Max Group.
The recast is aimed at unlocking shareholder value and providing a sharper focus to each business.
The existing Max India will be renamed MFSL and become the holding company for Max Life Insurance. Singh will quit as chairman of Max Life Insurance and leave its board. Khosla will now chair Max Life Insurance board.
The new Max India will become the holding company for healthcare and will own a 46% stake in the Max hospital chain and 51% of Max Bupa, the health insurance joint venture with Bupa. It will also be the holding company for Antara Senior Living. Khosla will become the chairman of the new company (Max India) and will be a permanent invitee to the boards and committees of all Max Group companies.
Singh will be chairman of MVIL, which will be the holding company for the specialty films unit. He will also be chairman of Antara Senior Living. He will be a permanent invitee to the boards and committees of all Max Group companies and will continue to provide guidance to them. He will also leverage his entrepreneurial skills and experience toward incubating new businesses in MVIL and nurturing Antara to maturity .
Singh's daughter Tara Singh Vachani, CEO of Antara, will join the board of Max India as non-executive director. She is also being elevated as managing director of Antara. Her husband Sahil Vachani will become managing director of MVIL and a board member of Max Speciality Films.
Mohit Talwar, currently deputy managing director of Max India, will become MD of MFSL and MD of Max India. In addition, he will become vicechairman of MVIL and chairman of its subsidiary, Max Speciality Films. He will join the board of Max Life and will con tinue to be a director in all the other operating companies.
Max Life CEO Rajesh Sud will become vicechairman while retaining his current position. He will also continue to be chairman of Max Bupa and will lead the group's activities in insurance and financial services.
Max will look to Kidwai's expertise and experience to help shape the future for MFSL and Max Life. “This process of `passing of the baton' from the `founder sponsor' demonstrates an evolution, which very few Indian business groups have been able to accomplish and signals high standards of transparency , governance, and forward thinking,“ Analjit Singh said.

After the restructuring, the erstwhile Max India's existing shareholders will retain one equity share of Rs.2 each in MFSL. They will additionally get one equity share of Rs.2 each of the new company Max India for every share held in MFSL and one equity share of  Rs.10 each in MVIL for every five in MFSL. The company has already applied for approval from the Foreign Investment Promotion Board to enable issuance of new shares “I look to the future with a strong sense of enthusiasm.We have created a solid foundation by establishing a high performance culture, supported by a firm bedrock of values to achieve industry leadership in each of our businesses,“ said Khosla. “Going forward, my focus will be to leverage this strong position and significantly grow our businesses, further strengthen governance, enhance our brand & reputation, optimise capital, and drive value creation for our stakeholders.“