Max Financial Services: Company worth ₹24,000 crore running with only 12 employees

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Max Financial Services: Company worth ₹24,000 crore running with only 12 employees
BCCL
  • Ranking 166th on the Hurun list, Max Financial Services Limited (MFSL) share price witnessed a 8% increase within the past week.
  • MFSL manages an 81.83% majority stake in Max Life Insurance, India’s largest non-bank, private life insurance company.
  • The group started off as a manufacturer of penicillin-based drugs.
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A holding company with only 12 employees has made it to India’s top 500 most valuable companies, according to the Burgundy Private Hurun India 500 list released on Thursday, December 1.

Ranking 166th on the list, the market value of the 38-year-old financial services company Max Financial Services Limited (MFSL) was at ₹24,436 crore, according to the Hurun list.

MFSL was ranked second in the Hurun list of ten most valuable companies with the least number of employees. The company which had the lowest number of employees was Kama Holdings with only three employees.

Both these companies are holding companies which hold stake in companies that generate value. Max Financial Services is a holding company that owns and actively manages an 81.83% majority stake in Max Life Insurance, India’s largest non-bank, private life insurance company.

Max Financial Services is listed on NSE and BSE, and its stock has also been rising for the last one week, going up by 8%. MFSL is a part of the Max Group, a $4.5 billion Indian conglomerate that provides healthcare, clinical studies and IT enabled services.

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But the group pivoted to many businesses over the years. “Starting off as a manufacturer of penicillin-based drugs, bulk active pharmaceuticals and packaging films, Max India evolved by partnering with global leaders like New York Life, Gist-brocades, Elf Atochem, Hutchison Telecommunications, Motorola, Comsat etc. Max India's key joint ventures partners include Life Healthcare and Bupa Finance Plc and Toppan Printing Co,” Max Financial blog stated.

Besides a 15% holding by Analjit Singh and sponsor family, some of the other group shareholders include MSI, Ward ferry, New York Life, Baron, GIC, Vanguard, Jupiter, Blackrock, and the Asset Management Companies of Nippon, HDFC, Canara, ICICI, Robeco Prudential, Sundaram, Mirae, DSP and Kotak. In spite of 17 different shareholders, the company has only 12 employees.

Financial services on the top

Most of the companies that featured on the 2022 Burgundy Private Hurun India 500 list, with lowest employees belonged to the financial services. To make it to this coveted list, companies require a minimum value of ₹6,000 crore, equivalent to approximately $725 million.


Companies with least number of employees
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RankCompanyNumber of EmployeesIndustry Value (INR Cr)
1Kama Holdings3Investments8,388
2Max Financial Services12Financial Services24,436
3Bajaj Holdings & Investment21Investments74,128
4Tata Investment Corporation22Investments11,871
5GMR Airports Infrastructure40Construction & Engineering 22,605
6Mensa Brands48Investment8,300
7Rattanindia Enterprises 97Energy6,725
8Tagros Chemicals123Healthcare7,300
9Rajesh Exports135Jewellery20,420
10Farmson Pharmaceutical140Healthcare10,100
10Hasura 140Software & Services8,300

Source: Hurun Research Institute, 2022 Burgundy Private Hurun India 500

In general, the list of most valuable 500 private companies is dominated by financial services. “Financial services has the largest share with 73 companies. Healthcare comes second with 60 companies. Software & Services and Chemicals with 37 companies each follow. The Financial Services sector is the biggest contributor to the 2022 Burgundy Private Hurun India 500 with 15% or 73 companies, down by 5% compared to last year,” Hurun reported.

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