Max India to be split into three separate companies

Splits life insurance, health business into separate entities

Max India Ltd, which has interests in areas including insurance and healthcare, said its board had approved splitting the company into three different entities to streamline the business structure and sharpen focus.

Under the restructuring, Max India will be renamed Max Financial Services Ltd, and will focus on the group's flagship life insurance business, a joint venture between Max India and Mitsui Sumitomo Insurance Co. Ltd.

The second company will manage investments in the health and related businesses, including Max Bupa Health Insurance, of which 74% is owned by Max India Ltd and the rest by British health insurance provider Bupa.

The group will also hive off its speciality packaging films business into a separate company, Max India said in a statement to stock exchanges on Tuesday.

Separately, Max India said the group will sell its clinical research arm to a Canadian contract research firm for $1.5 million, as it was not able to scale up the business due to regulatory challenges.