Birla Group's role in the insurance sector.

After playing a major role in most of the industries in India, which ranges from oil to cement, The Birla Group, has made their foray in the insurance sector. The Birla Group has christened the Birla Sun Life Insurance Company, which is a joint venture of The Aditya Birla Group and Sun Life Financial Services. Sun Life Financial is a leading international financial services organisation and a reputed global name in the insurance sector.

The joint venture companies are currently engaged in the activities of asset management, retail distribution and handling stocks. This partnership has now been extended to life insurance and pensions since this sector is currently privatised. Sun Life Financial Services has contributed immensely in the areas related to Product Structuring, Underwriting and Technology, which will result in creating a greater customer value. Breifing on the structure pattern and their present competitors, Kumarmangalam Birla, Chairman, The Aditya Birla Group, stated that, " Our vision is to be among the top five insurance companies in India. As far as competition is concerned, Life Insurance Company (LIC), due to their reach and market, at present is one competitor we can think of."

Birla Sun Life promises to be more customer focussed and the parent group's extensive presence in India, could be of great advantage, which insurance business might leverage. "We hope to expand our business modules in different parts of India as soon as we clean up our process and working modules which will first be activated in Delhi and Mumbai, and hence forth will be repeated elsewhere", asserts S K Mitra, Managing Director, Birla Global Finance.

Almost 74 percent of the company's holding is with Indian Rayon and current capitalisation of the joint venture stands at Rs 120 crores. With new players coming in, the company is anticipating a faster growth rate compared to yesteryears. "Lot of conjecturing will go on before we can actually get down to track the future market share of the company. We are expecting a growth of around 30 to 35 %, and our market share could be around 5-6%, of the new business" said Vijay Singh, Vice President, Sun Life Financial, India.

Don Stewart, the Chairman & CEO of Sun Life Financial Services, will take over as the Chairman of the Birla Sun Life Insurance and will operate from Canada. S K Mitra, Managing Director, Birla Global Finance, and Vijay Singh, Vice President, Sun Life Financial Services, will join the company and take care of the operations in India. With their vast esperiance and their brand name, the company hopes to be the first preference for the customers for insurance solutions through its superior value creation and technology.

For further information, contact:

Dr Pragnya Ram
Senior President - Corporate Communications,
Aditya Birla Group.
Tel: 022 282 2918
Fax: 022 282 2069
Email: pragnyaram@adityabirla.com

By: Sharmistha Chakraborthy

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