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 35% of Max India. The remaining shares in Max India are owned by Warburg Pincus (22%), foreign institutional/other investors and resident individuals. Max India owns 70% of Max Healthcare.

The total project cost is estimated at Rs. 4.72 billion (approximately $93 million). The proposed IFC investment is a Rs. 1.5 billion (approximately $30 million) equity investment in Max India for IFC’s own account. Max India is committed to utilize a minimum of Rs. 1.5 billion for its healthcare business during the project implementation.

42.39 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	42.39

* These investment figures are indicative

The project comprises expansion of existing Max facilities in the North Capital Region of Delhi, as well as the construction of new hospitals in Shalimar Bagh and Greater Noida.

The project will expand healthcare infrastructure and thus provide greater access to quality healthcare services at an affordable price to increased numbers of patients in NCR and people living outside the main urban center. In addition, the project will enhance the skill pool of the country since Max Healthcare provides education and training to a large number of people.

IFC’s equity investment will bring much needed capital and provide a strong signal of support to the health sector in India, which is experiencing difficulties raising affordable funding in the current environment. 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.

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;
PS 2: 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;
PS 3: 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
PS 4: 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
PS 5: 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.