Chennai-based Shriram Capital, the holding company of Shriram Group, would soon enter the general insurance sector in Indonesia and Philippines. The company is in talks with an insurance major in Indonesia for forming a joint-venture. Shriram Group will hold a majority stake in the proposed venture.
“We plan to tap some of the overseas general insurance market and we have already identified Indonesia and Philippines for the purpose as we believe there is scope to expand the market in these countries,” Arun Duggal, chairman, Shriram Capital told Hindustan Times without divulging any further details.
Duggal said that the JV would be inked soon.
After these two southeast Asian countries, the company could look at other markets as well.
In India, Shriram General Insurance Company Limited is a joint-venture between Shriram Capital and South Africa-based Sanlam Limited.
The bill to amend the Insurance Regulatory and Development Authority Act (IRDA) to raise the foreign direct investment (FDI) cap in private sector insurance companies to 49 per cent is still pending in the Rajya Sabha. The South African insurance major has already indicated that it would increase its stake in the company to 49 per cent as soon as the government increases the FDI cap in the sector.
A finance ministry source said that there was no hurry to take up the insurance bill. “There are other issues in the financial services sector which are pending and the government would like to focus on those on an urgent basis, the bill may not be taken up immediately,” the source said.