Berger Paints branches out into insurance broking

In a major diversification move, country's third largest paints company Berger Paints is joining hands with Vijaya Bank, Punjab National Bank and Principal Financial Group of US to form a joint venture insurance broking firm.

The new entity, for which a shareholding agreement will be signed up on March 5, will take up insurance brokerage and pension fund business.

In a notice to stock exchanges, the firms said its board has approved the insurance venture with a maximum investment of Rs 30 crore.

Subir Bose, managing director of Berger, said, the company has a healthy balance-sheet and it is looking for opportunities in the new area.

"The insurance brokerage business will benefit all the stakeholders of the company, including its shareholders and dealers," Bose added.