Ready to invest more in Shriram group: Steven Mostert

Interview with Managing Executive, Sanlam India

South Africa-based financial services group Sanlam recently invested around Rs 1,275 crore in Shriram group's financial services arm - Shriram Capital. Steven Mostert, managing executive of Sanlam India spoke to T E Narasimhan on the significance of its investment and said they were interested to infuse further money into the company, especially in insurance. Edited excerpts

What kind of interest Sanlam has in India?
We treat India and China as growth engines of the modern world. There are greater areas of mutual co-operation between India and South Africa, especially the intergovernmental and business level. People are now realising the potential of India and the insurance business in an under-penetrated market like India. With the rising disposable incomes, we find greater opportunities in India.

What are your expectations from the government and insurance regulator?

The government here is working to stimulate the foreign investment inflows. More importantly, we wish to see FDI cap removed in the insurance sector. At present, the regulation doesn't permit foreign holding beyond 26 per cent. The move (increasing FDI limit) would lead to increased investments by multinational companies. Regulation is tough on the product side no doubt, but in a way it is good also.

What does India mean for Sanlam?
South Africa has reached the saturation point in the life insurance business. In terms of India, with its low penetration, we're quite happy to have partnered with Shriram group for providing life insurance services to millions of population. The industry is currently witnessing a growth kind of developing phase. It will get better as we move along.

What kind of learning you planned to take back to South Africa from Shriram?
Doing business in rural areas is one of the key learnings from Shriram. We also foresee big potential for growth in rural parts of South Africa. Besides, the Shriram group's credit businesses have helped lakhs of people to come up in their life and these businesses have uplifted people and empowered them to be financially sound. This is one more learning we want to take back.

Would Sanlam infuse more funds into Shriram?
We are certainly open to the idea. As I have said , India would be the growth engine for Sanlam and it is important for us to see how we can grow in India. Currently, we're concentrating on other investment opportunities within the Shriram group.

Are you targeting at investment opportunities in India other than Shriram group?
Very difficult to give a definite yes. However, we have taken a deliberate decision to have Shriram as our partner in India. From our side, we will try to do things as much as possible within the Shriram partnership.