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| L&T to enter general insurance biz |
| Press Trust of India / Mumbai Aug 17, 2009, 21:14 IST |
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Multi-crore, diversified group Larsen & Toubro (L&T) today said it would enter the general insurance in the next six months and would go solo in its new venture.
"We have decided to enter into general insurance business considering the long-term potential of the business going forward," L&T Chief Financial Officer Y M Deosthalee told reporters here.
There are about 20 players, including four public sector firms, in the non-life insurance business.
"We are not partnering with anybody at this point of time for our general insurance foray which will take shape in six months. We would like to go on our own," he said.
As per the existing guidelines, a foreign partner is allowed 26 per cent stake in non-life ventures. They, however, cannot set-up wholly-owned subsidiaries in India.
General insurance would be a separate entity and the money required for the venture essentially will be in the form of equity and that will be from the parent L&T, the engineering and construction major, Deosthalee said.
Asked about funding for the insurance foray, Deosthalee said it would depend on the business plan which is in the process of being finalised.
L&T, which has a significant presence in IT and finance, is expected to approach the Insurance Regulatory and Development Authority (IRDA) for approval.
The company is also venturing into the asset management business but this is still in the preliminary stage, he said.
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