Aviva is planning to start asset management business in India. The UK based insurance major who has a partnership with Burmans of Dabur Group for life insurance venture in India is juggling with various options including a greenfield set-up, a JV or acquiring an existing asset management company(AMC), reports .
The financial sector meltdown has forced a number of AMCs operating in India to go up for sale and some other firms such as Goldman Sachs to postpone their asset management business. Some of the deals which have already happened include: Religare-Lotus, IDFC-StanChart Mutual Fund.
“As part of our expansion strategy in Asia Pacific and keeping in mind the opportunity India presents, we would like to explore the potential for establishing asset management business in India,” Aviva Asia Chief Executive Simon Machell was quoted as saying on Thursday. However, it is not clear by when would Aviva set up this business.
Aviva Life Insurance, a joint venture between Aviva and Dabur, has a capital base of about Rs 1,400 crore ($270 million). Incidentally Burmans of Dabur are already into asset management through an offshore fund. Gaurav Burman leads the AIM listed private equity firm Elephant Capital (formerly Promethean India). The Indian focused firm has investments in various firms including Mahindra Forging, EIH, Nitco Tiles among others.
There are 18 life insurance players in the country and half of them have their asset management arms. Some of the significant players include ICICI Prudential, Reliance Mutual Fund, HDFC Mutual Fund and SBI Mutual Fund.