The Hindu Business Line : IFFCO-Tokio plans to infuse Rs 120-cr capital

The company, which reported a 53 per cent increase in premium revenues in March 2005, has targeted an income of Rs 750 crore this year. Till November, it has already recorded an income of about Rs 500 crore.

Mr Ajit Narain, Managing Director, said that the proposed capital infusion will take place this year.

"We intend to strengthen our portfolio by introducing new products, some of which will be tailor-made for specific customer groups," he told newspersons.

The company is also seeking to leverage its distribution tie-ups with banks and other financial institutions, some of which are in States such as Andhra Pradesh, Karnataka, and Gujarat.

IFFCO-Tokio, a joint venture between Indian Farmers Fertiliser Co-operative and Tokio Marine, is of the view that the latest FDI norms on insurance will be used proactively by the two partners.

The latter is ready to consider an upgraded arrangement, it is noted. Details, however, are not known at this stage.

The company has been recording an improved return on equity, which stood at roughly 33 per cent in March this year. Its pre-tax profit (Rs 23.6 crore) has increased 66 per cent compared to the previous year.

Its market share as at the end of October 2005 was 4.14 per cent, according to IRDA figures.

To roll out more farm cover

IFFCO-Tokio, which has identified weather insurance as a potential growth area, has proposed to roll out new products aimed at the farming community.

It is, for instance, working on the possibility of insuring against excess rainfall - a risk that agriculturists in India are likely face every now and then.

The company, which has already covered nine districts in four States through its `Barish Bima Yojana', hopes to extend it to other geographical locations.

"There is a demand for such products," Mr Narain said while referring to the diverse needs of the market.

The company's marine liability insurance has now started covering barges, tugs, and smaller vessels.

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