Patanjaria Yurventives Limited, known for its herb and nature-based products, is making a major transition into the insurance sector by acquiring Magma General Insurance Limited for around 4,500 crores, along with the Dalampal Satya Pal Group. Subject to regulatory approval, the acquisition marks the strategic expansion of Patanjali across the FMCG sector in financial services, taking advantage of India’s unperturbed general insurance market.
A spokesman for Patanjali highlighted the rationale behind the move, citing ongoing regulatory reforms in the sector and the Insurance Regulation and Development Bureau of India (IRDAI) Vision of “insurance for all insurance until 2047”.
Exciting reforms
The spokesman said, “This sector is 100% open with FDI and undergoing exciting regulatory reforms. Magma’s general insurance can benefit immensely from its ability to inject growth capital. Patanjari Yulbed products are available at national level chains including 2,00,000 counters, Reliance Retail, HyperCity, Star Bazaar and 250 Patanjari Megastores, so it has a huge distribution strength, including access to rural markets.”
Patanjali aims to promote insurance accessibility, expand the range of magma general insurance markets and expand its broader financial inclusion targets in India with deep rural penetration and brand trust.
Sanoti Properties LLP, owned by Adar Poonawalla, has approved the sale of its insurance subsidiary Magma General Insurance Ltd (formerly Magma HDI General Insurance Company Ltd).
The transaction is constituted through a Stock Purchase Agreement (SPA) with Celica Developers and Jaguar Advisory Services, along with Sanoti Properties LLP.
Magma General Insurance offers a wide portfolio of over 70 insurance products, covering both retail and commercial categories. Retail insurance includes motors (cars, two-wheels, commercial vehicles, tractors, tractors), health, personal accidents, and home insurance, while commercial insurance covers fire, engineering, liability, and marine insurance.
The company reported a Gloss Written Premium (GWP) of 3,295 crores in 2024, and is projected to achieve a GWP of 3,650-3,700 crores in 2025, with a predicted profit (PBT) of 20-25 crores before tax.
Adar Poonawalla said: “In the last few years, Magma General Insurance is proud to have carefully built a business, both in retail and business, with over 18,000 agents, over 2,000 companies, 14 OEMs including all large OEMs, and more than 80 players in the financial services business. It has brought growth rates of 26% over the past five years. We are confident that we will continue to contribute strongly to the general insurance industry under the new ownership of Patanjali Aurveved and DS Group.”
