Dear Shareholders,

It is a cliché worth repeating that well begun is half done. Three years ago, when the idea of MaxVIL was conceived, no one thought that within the first year of its operations, this entity would register such an impressive performance.

The numbers speak of achievement. In less than a year since MaxVIL’s stock commenced trading on the bourses, the share price has more than doubled and boasts of a 30x improvement in its treasury corpus compared to when it was demerged from Max India in January 2016.

Needless to say that such a performance at the markets would not have been possible without the unflinching support of our esteemed investors.

While the Annual Report shall detail the major developments in each of the business verticals, for me, there were two remarkable developments which will have a significant impact in the longterm journey of this young Company. Namely, the New York Life investment and the Joint Venture with Toppan Printing.

In January 2017, we brought on board New York Life (NYL) Insurance Company, as a key strategic shareholder with an investment of ₹ 121 crore for a 22.51% stake in MaxVIL. Max has a long-standing relationship with NYL. The Company was our first major partner when Max was reinvented as a serviceoriented company in 2001. Therefore, it is very special to have them with us at the take-off stage of MaxVIL. This investment will be utilised towards MaxVIL’s focus areas including manufacturing, real estate and education.

The second major development was the Joint Venture between MaxVIL and Toppan Printing Co., Limited from Japan. If NYL, was the first partner for Max post its reinvention in FY 2001, then in the same vein, association with Toppan is also rather special, considering that the first ever joint venture for the Max Group in 1985 was Toyo Jozo, also a Japanese firm. Post the Joint Venture, His Excellency Mr. Kenji Hiramatsu, Honourable Ambassador of Japan to India, visited the Max Speciality Films’ manufacturing facility at Railmajra near Chandigarh.

Toppan will serve as a strategic partner in MSF and share their expertise to manage a global speciality films business, as well as, leverage their global sales network. Under this partnership, Toppan, which is a large global buyer of BOPP products (MSF’s key offering), will also serve as a customer of MSF. A substantial portion of the proceeds from this transaction will be utilised for MSF’s ongoing capacity expansion.

In less than a year since MaxVIL’s stock commenced trading on the bourses, the share price has more than doubled and boasts of a 30x improvement in its treasury corpus compared to when it was demerged from Max India in January 2016.

Toppan’s industrial experience of over 100 years, their expansive global sales network and cutting-edge technological capabilities makes them an ideal partner for us at this juncture in MSF’s journey. I am confident that the partnership will provide us the necessary global market access and technological support to drive long-term growth in the new and existing markets.

At a macro level, the forecast for the Indian economy looks bullish in the short, medium and long term. With an expected GDP growth rate of 7% for the next five years (as per World Bank estimate), India would remain a fast, if not the fastest growing major economy in the world.

Apprehensions of demonetisation slowing down the economy have thankfully not come true.

The success of the BJP in some of the crucial provincial elections has further strengthened Shri Narendra Modi’s position as the undisputed political leader in India. This political strength gives the ruling party a solid handle on the economic reform process. Significant reforms, recapitalisation in financial sector and consolidation in other sectors are expected. The implementation of GST that dismantles interstate barriers to trade in goods services, by collapsing 17 central, state and local body taxes in a single levy is a major reform. The long-term prospects of the Indian economy look upbeat with stock market indexes up 20% this year, making Indian markets amongst the world’s best performing capital markets. Appreciation in rupee and buoyancy in bond markets, point to investors’ long-term confidence in India.

Last year, in this letter, I cautiously spoke of a positive start to MaxVIL’s journey. This year, I feel a far superior sense of achievement and pride in the Company we have created and I’m positive that with your continued faith in our collective vision, MaxVIL will go on to scale far greater heights.

I have complete faith in the able leadership of Sahil Vachani and his passionate team who will help MaxVIL grow manifold in the coming years, while adhering to the highest standards of corporate governance and business ethics.

With good wishes,

Analjit Singh

Chairman, Max Ventures and Industries Limited