Date:03/01/2006 URL: http://www.thehindubusinessline.com/2006/01/03/stories/2006010302580600.htm

Back Hindujas plan insurance foray

Our Bureau

Mumbai , Jan. 2

THE Hinduja group is entering the insurance business in India. The group has already tied up with an overseas partner for a life insurance venture, Mr S.P. Hinduja, Chairman of Hinduja Group, said on Monday.

Mr Hinduja, however, did not disclose the name of the partner and investment details. IndusInd Bank, the group's bank may initially invest in the new business.

Though there are more than a dozen private companies in the life insurance business in India, the group thinks there is enough scope for new entrants. "We will be bringing innovative concepts in the insurance segment," said Mr Hinduja. Life Insurance Corporation currently has more than 74 per cent share in the life insurance market in the country.

One of the latest entrants in this segment is the Shriram Group.

Mr Hinduja said the group is planning fresh investments in the existing business, including automobile, financial services and media. "Raising capital is not an issue to the group. We will make investments in areas where we see long-term growth. We would not like to exit any venture that we have entered," he said.

"We expect the market capitalisation of the group in India to go up from $2 billion to $5 billion in the next few years," said Mr Gopichand Hinduja, President, Hinduja Group. The listed companies in the group include Ashok Leyland, Gulf Oil, Hinduja TMT and IndusInd Bank. Other areas the group is keen to invest include infrastructure and real estate, he said.

The group was also planning to revive its power project in Andhra Pradesh.