The Hindu : Business : Exide to invest more in ING Vysya

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Friday, Dec 01, 2006
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Exide to invest more in ING Vysya

Special Correspondent

To support expansion plans of IVL

KOLKATA: Exide Industries plans to make further investments in ING Vysya Life Insurance Company Pvt. Ltd. (IVL) in which it acquired a majority stake in July 2005.

S. B. Ganguly, EIL Chairman, and Director, IVL, said at a press meet here on Wednesday that the board had committed to support the expansion plans of IVL, which was now readying itself for a national rollout by 2007. At present it is a strong player in the South.

"One and a half years ago we made this investment (acquisition of majority stake) as we were looking for opportunities to park our reserves. We feel we can be assured of our investments and plan to invest over Rs. 100 crore shortly,'' he said, adding that Exide had a healthy balance sheet with huge surplus and profits.

IVL's equity to go up

IVL's Rs. 540-crore equity base is set to increase to Rs. 1,380 crore by 2009 with the partners contributing proportionately.

At present, Exide holds a 50 per cent holding in IVL with the Dutch financial institution ING holding 26 per cent and Gujarat Ambuja and Enam Investments holding the remaining 24 per cent. To a question on whether EIL would either step up or dilute its equity in the event of the Government allowing FDI in the insurance sector (beyond 26 per cent), he said: "We will stay put at 50 per cent.''

Kshitij Jain , IVL Managing Director and CEO, said IVL would expand its branch network to 320 that by 2007, from 130 now. The total income target for 2009 had been pegged at Rs. 5,000 crore against Rs. 700 crore in 2006 calendar.

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