India’s economy is growing at a rapid pace and every company in the world is looking to invest in India. In this series, Africa’s largest insurance company is gearing up to compete with Asia’s top businessman Mukesh Ambani. In fact, Africa’s top insurance company Sanlam Limited is gearing up to make a big bet in India. This South African company is the largest company in Africa in terms of market capitalization. Let us tell you in detail what the company’s plan is and who it will be joining hands with and working with in India.
According to a Bloomberg report, the company is joining the race to enter India’s emerging wealth and asset management industry. To do so, the company plans to increase its partnership with Shriram Capital Group. Both companies are forming a joint venture that will provide wealth and advisory services. The company will double its initial investment in 2005. This company is already in the credit and insurance sector in India.
Why does the company want to invest in India?
Paul Hanratty, CEO of Sanlam, said in an interview that a large number of people in India are coming out of the poverty trap and focusing on their future. In fact, India is at a point where a large section of the population is now able to save and invest for the future. At the same time, the IMF has also estimated the growth of the Indian economy. According to the IMF, India’s economy will grow by 6.8% this year, while South Africa’s growth rate is estimated at 0.9%. According to Boston Consulting Group, India is expected to acquire wealth worth $730 billion by 2028. This is the reason why companies like HSBC Holdings and Barclays are expanding their business in India.
What is Mukesh Ambani’s plan?
SBI is deploying 2,000 bankers to woo the rich. It is the country’s largest bank with more than 22,500 branches. In April, the world’s largest fund manager, BlackRock Inc., signed an agreement to form a joint venture with billionaire Mukesh Ambani’s Jio Financial Services Limited. The two companies will set up wealth management businesses in the country. A brokerage firm will also be set up. Hanratty said India’s economy is growing rapidly and every company in the world wants to do business here.
Sanlam will compete like this.
Now, if we talk about how the African company will compete with Ambani, then Mukesh Ambani is also planning to do business with BlackRock. At the same time, Sanlam has also planned very well to expand its business in India. According to the company’s CEO, they have a very wide distribution area. They just need to take their business forward in the right way. Then gradually start expanding it to the existing branch and customer base. Sanlam’s Indian business earned nearly 16% profit during the half-year ended June 30, up from 10% in 2021. The company’s revenue rose 43% from the same period last year due to gains in life and health insurance, a jump in general insurance and improvements in investment management.
