Max India Ltd

Dear Shareholders, Greetings !

As we strive to realign ourselves in the post-COVID world and adapt to the ‘new normal?, our belief is even stronger that an organization?s path to success is driven by reinvention, change, agility, and resilience. The erstwhile Max India has gone through a significant evolution since its restructuring in June 2020, which gave birth to the ‘new? Max India Limited.

Senior Care, as a sector, is witnessing rapid growth and evolution. Existing players are endeavouring to scale up and develop high-value products that cater to the rising demands of the senior population and new players are foraying into the sector with innovative offerings as well.

Key factors driving the senior care market include the increasing senior population in the country, rise in life expectancy, higher adoption of nuclear families, a larger cohort of financially independent and educated senior citizens with growing healthcare and evolving lifestyle needs.

Of the 20,000 senior living units in India, about 55% are operational, while the rest are in various stages of construction. The demand – pegged at about 240,000 units – is almost 12 times the available capacity.

Antara – Max Group?s Senior Care business – which is now the flagship business of our Company, has received a rousing response from the industry and customers alike. The dream first conceived in 2011, and then actualized in 2013 with the launch of Antara Senior Living facility in Purukul, Dehradun, has added many milestones in its decade-long journey.

More than 90% of the total available inventory has already been sold in Purukul and Antara Purukul Senior Living has also achieved an impressive 90%+ RSAT (Resident Satisfaction) score in FY22.

Antara has also launched a new senior living community in Sector-150, Noida, with 340 apartments in its first phase of development, which will cater to the healthcare, wellness, social, recreational, and spiritual needs of seniors and will be ready for possession by 2025. The response to the upcoming community has been phenomenal with more than 70% of the total inventory being sold already till March 2022.

During FY22, Antara Assisted Care services (‘AACS?) served 10,000 unique patients, attained patient satisfaction rate of 92%, added two care homes in Gurugram & Jasola Vihar, Delhi and increased bed capacity from 70 to 90 beds including 10 beds for memory care.

16 service lines are running under the Care at Home vertical and a wide range of medcare products aimed at facilitating patient recovery and well-being are being offered.

Antara follows international-class clinical protocols and has also received the prestigious QAI certification for its Care at Home Services, one of the youngest organisations to receive such recognition.

Though the ‘new? Max India Limited is just two years old, its philosophy is a continuum of the Max Group?s fundamentals of sevabhav, credibility and excellence. A highly agile and dynamic team is carrying forward the Group?s pursuit of setting an exemplary record of governance and creating value for all its investors.

We are pleased to inform the shareholders that the Hon?ble National Company Law Tribunal, Mumbai, has now approved the Scheme of Reduction of Capital. Eligible public shareholders will be given an option to tender their equity share entitlements for cancellation in consideration of Rs.85/- per share. This capital reduction is not a compulsory exit for the public shareholders. They may choose not to participate and enjoy a resultant increase in their percentage shareholding, post capital reduction, without additional investment.

Antara aspires to be a multi-location company over the next 5-6 years with 5 to 7 communities through its residences vertical, approximately 2,000 beds in Care Homes/Memory Care Homes, a robust Care at Home and Medical equipment business. The company will invest upto Rs.300 crore across these new business verticals as well as the existing ones.

Max India?s foray into Assisted Care Services was envisioned to provide an integrated care ecosystem for seniors. The shift has proven to be a success as consolidated revenues grew 83% to Rs.238 crore in FY22 and EBITDA loss reduced to Rs. 0.1 crore in FY22.

In FY22, Antara achieved promising results in its residences business, with 37 net sales for Dehradun and 96 net sales for Noida. Further, the entire project debt for Dehradun project was prepaid, making Antara Purukul Senior Limited both Cash and PBT positive. AACS, too, recorded a gross revenue of Rs.19 crore in FY 22, which is approximately 4x of its FY21 revenues. As envisioned the Gurugram Care Home achieved break-even within 2 years of its opening thereby validating unit economics and viability.

The net collections at the end of FY22 crossed the FY21 numbers and the total stood at Rs.113 crores for Dehradun and approximately Rs.50 crore for Noida.

We take pride in stating that Antara was well recognised for its efforts and received several accolades, including the Best Senior Living Project of the Year from Economic Times Realty for its upcoming senior living community in Noida Sector-150. Our journey in the senior-living space is helping us impact the quality of life for seniors besides achieving outstanding results and awards.

Further, the Max Group was voted among the top 25 organizations with best in-house communications in India. The Group?s presence in the list, which had some stellar corporate names, speaks volumes of the quality of talent being nurtured within the various Group companies.

what?s next

We have outlined a five-year aspirational plan for Antara following its initial success, where we intend to enter other geographies in addition to deepening our presence in Delhi-NCR. The strategy includes launching 5 – 7 senior living communities, 35-40 Care Homes / Memory Care Homes, strengthening the Care at home services portfolio and expanding the MedCare products vertical.

Globally, Assisted Care Services is an established and sought-after category, particularly in markets such as Japan, Singapore, the US, and many parts of Europe. The demand accelerated in India during COVID-19 and while we have been able to leave behind the trauma of the second wave of the pandemic, the post-COVID complications are still haunting us. The senior care market, still at a nascent stage, is expected to gather more momentum with an increase in the population of elderly, a significant proportion of whom are seeking specialized services.

It is estimated that home healthcare has the potential to replace up to 65% of the unnecessary/less serious hospital visits in India thereby reducing the overall hospital costs by 20%. In 2020, the Indian home healthcare market was valued at approximately $6.2 billion. It is expected to grow at a CAGR of 19.2% and reach $21.3 billion by 2027.

The potential market size of Senior Care opportunity in India, of which Antara is a key participant, is estimated at about $10 -12 billion.

Our vision is to create a loved and trusted brand for Seniors and dominate the senior care sector with an integrated offering catering to the rapidly evolving needs of Seniors With all good wishes and gratitude for your support and confidence.