Giving shape to his succession plan, Max India founder Chairman Analjit Singh today said he would step down as the Managing Director of the company and has appointed a professional, Rahul Khosla, for the position.
"Well, it is momentous, it is landmark. In companies where families have significant single largest shareholding, it is not the typical pattern, because typically...This position is occupied by somebody from within the family," Singh told PTI.
"It is part of our momentum of institutionalising the company. Two years ago, we started our journey into board governed company.... So, this is one more step and maybe a very large final step in that direction...To get the management of the board governed company in the hands of a younger more able more experienced manager," he added.
Singh, whose three children Piya, Veer and Tara are engaged in various other start up businesses, said he was not looking at them taking up the operational role at the Max India level anytime soon.
"If they ever have anything directly to do with Max India, it could be in a board role but not in an operating role. So, in that sense it is a succession towards Rahul ...To use the normal language the future MD of Max India will be a professional and not a family member," he added.
Singh said he took this step to ensure that operational functions of the group, which is into insurance and healthcare businesses, are handled by a professional who would help it more than double the revenues in five years and improve profitability.
"It is a business move. It is a voluntary choice of how I want to spend my business life and it is a succession plan to indicate that the managing director or the person at the helm of affairs of this company will not be or not necessarily be a family person and will be Rahul," he said.
Singh will continue as executive chairman of Max India as well as its subsidiaries Max New York Life, Max Healthcare and Max Bupa.
Khosla, who has a wealth of experience in banking and insurance, is joining Max from Visa where he is Group head of Products for Asia-Pacific, Central Europe, the Middle East and Africa markets. He will take charge of his as Max MD from August 18, 2011.
On consolidated basis, Max India had revenues of about Rs 7,900 crore in the last financial year. As much of 80% of that came from the insurance business and about 10% from the healthcare.
"We plan to grow at a CAGR of about 25% over the next five years," Singh said.
