Patanjali Ayurved Ltd, known for its herbal and nature-based products, along with Dharampal Satyapal Group, is making a significant move into the insurance sector by acquiring Magma General Insurance Ltd for approximately ₹4,500 crore. The acquisition, subject to regulatory approvals, marks Patanjali’s strategic expansion beyond the FMCG sector into financial services, tapping into India’s underpenetrated general insurance market.
A spokesperson for Patanjali Ayurved highlighted the rationale behind the move, citing the sector’s ongoing regulatory reforms and the Insurance Regulatory and Development Authority of India’s (IRDAI) vision of “Insurance for All by 2047.”
Exciting reforms
The spokesperson added, “The sector is undergoing exciting regulatory reforms with 100 per cent FDI opening up. Magma General Insurance could benefit immensely from our ability to infuse growth capital, huge distribution strength including access to rural markets as Patanjali Ayurved products are available at 2,00,000 counters, national level chains including Reliance Retail, Hyper City, Star Bazaar and 250 Patanjali Mega Stores.”
With its deep rural penetration and brand trust, Patanjali aims to drive insurance accessibility and expand Magma General Insurance’s market reach, aligning with India’s broader financial inclusion goals.
Sanoti Properties LLP owned by Adar Poonawalla, approved the sale of its insurance subsidiary Magma General Insurance Ltd (formerly Magma HDI General Insurance Company Ltd).
The transaction is structured through a Share Purchase Agreement (SPA), with Sanoti Properties LLP alongside Celica Developers and Jaguar Advisory Services, collectively referred to as the Majority Sellers.
Magma General Insurance offers a broad portfolio of over 70 insurance products, covering both retail and commercial categories. Its retail insurance offerings include motor (car, two-wheeler, commercial vehicles, tractors), health, personal accident, and home insurance, while its commercial insurance products cover fire, engineering, liability, and marine insurance.
The company reported a gross written premium (GWP) of ₹3,295 crore in FY24 and is projected to achieve a GWP of ₹3,650-3,700 crore in FY25, with an expected profit before tax (PBT) of ₹20-25 crore.
Adar Poonawalla said, “We are proud that over the last few years, Magma General Insurance has built up its business carefully, both on the retail and corporate side, with over 18,000 agents, more than 2,000 corporates, 14 OEMs including all the large OEMs, and more than 80 players in the financial services business. It has delivered a growth rate of 26 per cent over the last 5 years. We are confident that it will continue to make a strong contribution to the general insurance industry, under the new ownership of Patanjali Ayurved and the DS Group.”
