Kolkata, July 28 (Inditop.com) Financial services company Magma Fincorp Ltd has signed a joint venture agreement with Germany-based HDI-Gerling International Holding to foray into the general insurance segment in India, a top official said here Tuesday.
“The total investment in the insurance company would be around Rs.100 crore where the foreign partner will hold 26 percent stake,” Sanjay Chamria, vice-chairman and managing director of the city-based Magma Fincorp, told reporters.
The joint venture is yet to get the approval of the Reserve Bank of India and the Insurance Regulatory and Development Authority to start business.
“We are in the process of applying to the regulators and expect to start operations by early 2010-11,” Chamria said.
Magma would leverage its existing network of branches in semi-urban and rural areas that sell used commercial vehicles and tractors, he said.
HDI-Gerling International is part of Germany’s Talanx-Group.
