Birla Group's role in the insurance sector.
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.
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.
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
For further information, contact:
Dr Pragnya Ram
Senior President - Corporate Communications,
Aditya Birla Group.
Tel: 022 282 2918
Fax: 022 282 2069
By: Sharmistha Chakraborthy