MANAGEMENT DISCUSSION

AND ANALYSIS

Mr. Rajender Sud

Chief Executive Officer

Mr. Anshuman Kamthan

Vice President & Key Account Manager

Mr. Pushkar Saran

Senior Vice President & Head Business-Operation & Strategy

Ms. Sarika Swarup

Vice President & Head - Content

Ms. Simar Deep Kaur

Vice President & Head - Human Resources

Mr. Sudhir Nair

Vice President & Key Account Manager

Mr. Sunil Solanki

Vice President & Key Account Manager

Max SkillFirst Limited (MSF) is a wholly-owned subsidiary of Max India, founded with the vision of impacting the sales and service culture in India by being the most admired Learning and Development organisation. The Company employs more than 330 professionals and 1,000 freelance trainers from premier institutes with vast experience in the fields of distribution, operations, strategy, human resource and finance, among others.

HIGHLIGHTS OF FY 2017

In FY 2017, MSF imparted over 4.3 lakh hours of training to more than 55,000 trainees through more than 1,25,000 sessions. During the fiscal, Max SkillFirst reported revenues of ₹ 44.6 crore, growing 27%, with profits of ₹ 4.7 crore.

CONTENT AS BUSINESS DRIVER

Content is one of the key business drivers of Max SkillFirst. In FY 2017, Max SkillFirst won the Brandon Hall Excellence Award - Gold for the “Best Use of Games or Simulations for Learning” for two of our flagship programmes – ‘Selling Skills Workshop (SSW) and Recruitment Skills Workshop (RSW)’, an acknowledgement of our world-class content design and delivery.

Max SkillFirst has developed 1,061 hours of new and refurbished content across all accounts by using instructional design principles. For Max Life, the Company has created a deviceagnostic content, which includes induction, on-boarding across roles, sales and recruitment skill builders and interactive gamebased e-learning modules for various Max Life products. MSF has also developed content for different channels of Max Bupa, viz. Agency, Bancassurance, Direct sales, Tele-sales along with leadership videos and customised videos on processes. For Max Healthcare, we have developed videos on frequently-occurring scenarios for Nurses, Front office and Security guards. Also, videos were developed on vision, mission & values featuring the Managing Director & CEO of Max Healthcare.

TECHNOLOGY

In FY 2017, MSF expanded the existing technologies and launched various new interventions. Max SkillFirst mobile/tabletbased app has been launched to provide a digital platform for learning and training. The modules of the app were customised as per the clients’ requirements to suit their business needs. Most recent addition to this series of development is the rollout of MSF app-world of BoB (Bank of Baroda) for Max Bupa, in order to simplify the business processes for Max Bupa BoB employees such as the facility to digitally fill the forms.

PEOPLE CULTURE

More than 120 employees were hired in FY 2017, which represents 36% of the current workforce. A 90-day induction module was initiated for capability development for all new hires in front line training roles. A robust mechanism has been developed for the smooth induction and on-boarding of trainers. As part of our employee value proposition, Max SkillFirst has continued to deliver on its promise of employee enablement through Heart, Mind & Soul alignment workshops by delivering training on the same to 276 employees in FY 2017.

NEW TRAINING INITIATIVES

In FY 2017, Max SkillFirst launched the Power to Perform (P2P) programme for prior and established class agents to improve their performance by providing an engagement platform through the training on sales cycles, products, taxation, understanding customers, etc. MSF also provides training for the newly launched products. The most recent in this series is product training for HAv2 (Health Assurance version 2) for over 800 employees of Max Bupa and more than 950 agents. HBv4 (Heart Beat version 4) product training was also completed across all branches of all partner banks. Another major training initiative was the training of over 2,500 bank personnel across more than 1,000 branches of Bank of Baroda (BoB) in 13 different zones, which was carried out for Max Bupa’s new bancassurance alliance with BoB.

OUTLOOK

The Indian training market is estimated to be around ₹ 5,000 crore and is growing at an annual rate of 10-12%. BFSI is the most attractive sector for B2B training, accounting for 50% of the total B2B training spends, while BFSI and Healthcare are the key sectors for B2C (source-skill-deploy model). Max SkillFirst has prepared itself to grow through different channels. As the B2B training market has huge potential and is the most attractive segment, Max SkillFirst is gearing up to expand its existing B2B training business. Recently, Max SkillFirst acquired its first external client, Magma Fincorp, one of India’s leading NBFCs, after two years of providing training services exclusively to Max Group entities. As part of this new engagement, Max SkillFirst will offer sales management programmes to Magma Fincorp’s Branch Managers and Territory Managers, while guiding their employees through sales and product training.

On the other hand, the B2C market is moving towards the source-skill-deploy model across industries including B2C healthcare training which is expected to touch ₹ 200 crore. Demand for allied healthcare professionals in the healthcare industry is estimated to be 1.9 million. Max SkillFirst has taken over Allied Healthcare Diploma business verticals from MIHER (Max Institute of Health Education & Research) to train aspirants on four healthcare disciplines viz., Lab technician, Operation theatre technician, Dialysis technician and Radiology technician. The focus is on incubation of this segment and scaling up the existing diploma training business from current annual enrolment of 180 students to 1,200 in the next 3 years.