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Max India takes majority stake in HealthScribe

Our Bureau

BANGALORE, July 10

MAX India has acquired a 71.4 per cent stake in HealthScribe India (HSI) for Rs. 8.5 crores. For Max, the move marks its entry into IT-enabled services _ one of the three areas that the company has identified for itself as a focus.

HealthScribe India, a medical transcription company, has a turnover of Rs. 25 crores and is expected to grow to a Rs. 600-crore business over the next five years.

``After valuating the company and taking into account its potential, Max decided to buy shares in the company at a 70 per cent premium,'' said Mr. Vivek Jetley, CEO, Max India.

The joint venture company will continue to work closely with HealthScribe Inc, HSI's parent in the US. The divestment in the Indian arm will allow HealthScribe Inc to focus on technology and the front-end operations. HSI had been looking for a joint vent ure partner who could bring in investments and know the Indian market well enough to create a larger capacity here, according to HSI officials.

HealthScribe Inc has committed one billion lines of transcription to the Indian company till 2004.

HSI had been planning to double its operations in India and increase its strength to 1,000 people.

Max will enter into other joint ventures in the IT-enabling areas, said Mr. Jetley, but did not elaborate on it.

In the IT sector, it has invested $4 millions in MindCrossing Inc for a 15 per cent equity. Max MindCrossing will develop software for its other businesses and Web-based businesses. It also plans to set up a B2B site.

Max India has invested $7 millions in AltaCast to pick up 21.9 per cent equity in the company.

Max's entry into the financial services and the insurance sector is also through joint ventures. It has tied up with New York Life to enter the insurance area and is awaiting the IRDA clearance before going ahead with its investment.