The Hindu Business Line : Shriram group buys 40% stake in Philippines co

Chennai June 8 The Chennai-based Shriram group has picked up a 40 per cent stake in Monarch Insurance Company, a non-life insurance company based in Makati City, Philippines.

The deal was consummated recently for a consideration of about Rs 7 crore, the Shriram group's Chairman, Mr R. Thyagarajan, told Business Line today.

The deal was done through a Singapore-based subsidiary of the group, in which the Ceylinco group of Sri Lanka has a 20 per cent stake. The Singapore subsidiary is a special purpose vehicle set up for the purpose of holding investments in insurance companies around the world.

Terming the stake-take a "small step", Mr Thyagarajan said the Shriram group had global ambitions and was keen on gaining entry in whichever country provided an opportunity.

Indonesian venture

The next investment could well be in Indonesia, where the group is negotiating with an insurance company for a 60 per cent stake.

He said that Shriram's partner in the Indian life insurance venture, Sanlam of South Africa, might also pick up some stake in the Singapore-based subsidiary.

Meanwhile, it is learnt that Shriram group's non-life venture in India, again in collaboration with Sanlam, is waiting for a licence from the Insurance Regulatory and Development Authority. The delay appears to be because Bank of Maharashtra intends to join the venture and has to get a go-ahead from its regulator, Reserve Bank of India.

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