The project sponsor is Max India Ltd, a listed company (Bombay and National Stock Exchanges), which commenced operations in the 1980s. It is a multi-business company with interests in life insurance, healthcare, clinical research, specialty plastics and health staffing. It’s Chairman and founder, Analjit Singh, along with other promoters, owns 41% of Max India. The remaining shares in Max India are owned by foreign institutional/other investors and resident individuals. Max India owns 70% of Max Healthcare and Warburg Pincus is the other main shareholder of Max Healthcare with a 23% shareholding.

The total project cost is estimated at $90.0 million. The proposed IFC investment is a $66.7 million equity and quasi-equity investment for IFC’s own account.

67.14 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	67.14

* These investment figures are indicative

The project comprises expansion of existing secondary and tertiary facilities as well as construction of new hospitals in the North Capital Region, which includes New Delhi and its approximate surroundings, and Dehradun, located 250km north of Delhi.

The project will expand healthcare infrastructure and thus provide greater access to quality healthcare services to increased numbers of patients in NCR and beyond Delhi. The project also complements the Government of India’s endeavors to expand access to healthcare, including provision of healthcare to government employees. It is also expected to create over 4500 jobs (medical industry and during the construction phase).

IFC’s equity investment would provide the company critical ‘breathing space’ in its important ramp-up growth period. The Sponsor and Company also value IFC’s global experience in financing healthcare companies and its expertise in and knowledge of the private healthcare sector in developing countries. It also recognizes that IFC, as a widely respected international financial institution, would bring credibility and discipline to the company as it approaches its proposed IPO. Further, IFC would be able to contribute to improving the corporate governance and environmental, social and insurance standards and operating practices of the company’s hospitals, in which the Sponsor has expressed interest.

While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

- PS1: Social and Environmental Assessment and Management Systems with respect to corporate environmental, social, and health and safety management systems policies and procedures and their implementation across its existing and proposed operations, including national and local government permitting requirements;

- PS2: Labor and Working Conditions including occupational hygiene, health, safety and training programs and protocols for all employees, and specific measures for housekeeping, radiation, kitchen and other at-risk employees and contractors;

- PS3: Pollution Prevention and Abatement including environmental and social issues typical of health care projects such as air emissions and noise; water and wastewater; power (including fuel storage); hazardous materials management, storage, handling and disposal; and minimization, recycling and disposal of solid and hazardous wastes; and

- PS4: Community Health, Safety and Security including fire and life safety and emergency response, community consultation and disclosure, and corporate social responsibility efforts including HIV/AIDS awareness; and

- PS5: Land Acquisition and Involuntary Resettlement as applicable if land acquisition results in compensation payments and physical and/or economic resettlement.

Complete details on IFC’s Environmental and Social assessment of this project may be found in the Environmental and Social Review Summary prepared by IFC, which also will be made publicly available on the IFC website.

Environmental Documents will be made accessible at the following location:

Max House
3rd Floor, 1, Dr. Jha Marg, Okhla Phase III
New Delhi, 110-020