The Hindu Business Line : Max NY Life inks pact with rural retail chain

Triveni Khushali Bazar (TKB), a chain of retail stores aimed at meeting the needs of the farmers and farming families, has tied up with Max New York Life (MNYL) to sell its life insurance policies through the retail outlets.

TKB currently has 11 rural malls and plan to set up 2-3 every month to take the total to 45 by March 2007, Mr Dhruv Sawhney, Chairman and Managing Director of Triveni Engineering & Industries Ltd, told newspersons today. (The TKB chain is run by Triveni Engineering's wholly owned subsidiary, Triveni SRI).

The chain is expanding through the dual mode of company-owned stores as well as franchisee stores.

Simultaneously, the company is expanding its sugar capacity and would have around 1.5 million farmers in its coverage area.

This would give the opportunity to reach out to a large section of the population that needs life insurance cover, he said.

The tie-up will strengthen MNYL's rural presence in West Uttar Pradesh, said Mr Gary Bennet, Managing Director and CEO, after signing the agreement.

The company will tailor its products according to the needs and affordability in the rural areas, taking into account important factors like children's education, daughter's marriage, and flexible premium payment options, while planning the products, he said. "Given the huge size of the rural market and the increasing propensity to save, the potential that exists in the rural market is enormous," Mr Bennet added.

To pump in Rs 400 cr; break-even by 2008

MNYL plans to induct Rs 400 crore fresh equity into the company's paid-up capital over the next two years and expects to break even by 2008. This would take the company's equity base from Rs 557 crore now to more than Rs 900 crore.

"Our current paid-up capital is Rs 557 crore and we are increasing it by another Rs 400 crore by 2008 to meet business demands," said Mr Gary Bennett, Managing Director.

The company expects to notch up a total premium income of Rs 1,000 crore this fiscal, compared to Rs 634 crore last year.

"We expect the new premium income to be around Rs 650 crore this year against Rs 427 crore last year," he added.

The company has so far sold 9.3 lakh policies, out of which 2.3 lakh were rural policies; the total sum assured is over Rs 27,000 crore. "Already 25 per cent of our total policies comes from rural areas," he said.

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