The Hindu Business Line : Societe Generale eyes insurance market with jt venture plans

Growth areas
In private banking, NRI clients are catered to by teams in Singapore, London etc
Fleet management initiative takes care of over 100 clients with about 2,000 vehicles
Asset management will continue to be a focus area for the company

Kolkata June 25 Societe Generale, the diversified French group, is looking at the Indian life insurance market for a possible joint venture with one or more local partner.

SG, for which core businesses include retail banking, asset management and investment banking, is considering various options, regulatory issues such as the FDI limit notwithstanding.

The group regards an entry into the Indian insurance market a feasible option, said Mr Jean-Francois Gautier, Head of Specialised Financial Services Division of SG, conceding that the market has already seen the entry of a number of large overseas players, courtesy tie-ups with local corporate houses.

"Yes, we are looking at insurance," he told newspersons, while elaborating on SG's overall plans for India.

It has already rolled out a number of businesses - private banking, corporate & investment banking, car leasing & fleet management and asset management.

The group's India strategy is in line with its plans for Asia Pacific, a region where it is eyeing major growth opportunities, especially in emerging markets such as India and China.

In private banking, for instance, it has significant plans, having rolled it out in December 2005.

This now has over 40 employees in Delhi and Mumbai; NRI clients are catered to by teams based in Singapore, London and elsewhere. The fleet management initiative too has taken off, catering now to over 100 clients with about 2,000 vehicles.

Asset management, where it has a partnership with SBI Funds Management, will continue to be a focus area for SG. The latter holds over 30 per cent in the asset management venture.

However, it is currently the third-largest Indo-overseas joint venture, with about $4.4 billion under management.

As for the possibility of doing retail banking in India, SG will have to deal with regulatory norms, Mr Gautier said.

Achieving organic growth will be a major challenge on this front, he added.

Rolls out consumer finance brand

Societe Generale, which last year acquired the Kolkata-based Apeejay Finance, has rolled out its consumer finance brand, christening it Family Credit.

This will now be spread to retail markets. Incidentally, Societe Generale Consumer Finance has an 89 per cent holding in the company.

The group, said Mr N.V. Swaminathan, CEO, Family Credit, offers auto and two-wheeler loans and loans for consumer durables.

It also intends to offer personal loans soon.

Family Credit is looking at a business of Rs 4,000 crore in the next three to five years, he said, adding that its distribution model will encompass a variety of channels, including direct sales agencies.

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