New Delhi: The Chandras, the promoters of Unitech, India's second largest real estate company, are looking to venture into the sunrise general insurance sector. This will be the second major diversification move by the promoters after the telecom foray sometime back. A top Unitech executive confirmed the family's interest in the insurance sector. "It is being looked at as a family investment, but not actively as yet", he said. The partner and the proposed investments have not been finalised, but sources indicated that the foray may be undertaken in partnership with a foreign company.
A total of 26 per cent foreign investment is allowed in the insurance sector and the limit is proposed to be increased to 49 per cent soon. The Chandras are among India's richest business families. They have nearly 75 per cent holding in the listed Unitech, which is worth Rs 19,293 crore (over $4.5 billion) as of today.
The group patriarch Ramesh Chandra is the chairman, while sons Sanjay and Ajay Chandra run the business as managing directors. Sanjay, who oversees finances and new businesses such as the wireless communications foray, is the public face of the group, while Ajay handles land acquisition in south Indian markets.
The general industry consists of 14 players. The 14 non-life players grew their businesses by 12.6 per cent to Rs 28,130 crore in fresh premium in 2007-08 as against Rs 24,975 crore in 2006-07.
Shriram General Insurance Company made its debut into general insurance market this year and some more players are expected to enter the fray. The general insurance market which was detariffed from January 2007 has witnessed an unprecedented decline in the prices of fire and engineering covers. However, the health insurance and motor insurance have performed well.
The Insurance Regulatory and Development Authority is expected to give freedom to insurers soon to change the terms and conditions of contracts.
Source: Business Standard
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