The $2 billion multi-diversified Hinduja Group is all set to foray into the insurance sector following a memorandum of understanding (MoU) inked recently with a leading European company which would be its foreign partner. The foreign partner is expected to hold 26% stake in the venture, while the Hinduja Group would hold the majority stake. “Our insurance venture would have a different concept,” Hinduja Group chairman SP Hinduja said without detailing the concept or divulging the name of its foreign partner or the details of the deal.

The Indian insurance sector has caught the fancy of the insurance majors globally, and particularly from Europe. A few of them keen to enter India include ACE Insurance, Fortis Insurance, France-based Axa and Aviva, which is now weighing an entry into the general insurance business. Among Indian majors, the Tata Group, the Anil Dhirubhai Ambani Group, the Birla Group, the Bajaj Group and Kotak are already in the insurance business. The Indian insurance sector currently boasts of 21 players comprising eight life and 14 general insurance players, since the sector was opened in 2000. Talking about the insurance venture, Prakash P Hinduja, chairman, advisory board, Hinduja Group of Companies said “We would cater both the segments, life as well as general.”

The group is also planning to add over 80-90 branches of IndusInd Bank across the country, which will be used to distribute its insurance products across the country. The bank already has over 176 branches across the country.

(www.financialexpress.com)