Sanoti Properties LLP, owned by Adar Poonawalla, has approved the sale of its insurance subsidiary, Magma General Insurance Limited (formerly Magma HDI General Insurance Company Limited), to Patanjali Ayurved Limited and DS Group for approximately ₹4,500 crore, subject to regulatory approvals.
The transaction is structured as per a Share Purchase Agreement (SPA), with Celica Developers and Jaguar Advisory Services also participating in the sale alongside Sanoti Properties LLP, collectively referred to as the Majority Sellers.
Patanjali Ayurved Limited (PAL), established in 2006, is a leading manufacturer and marketer of herbal and nature-based products, including medicines and other FMCG items.
The Dharampal Satyapal Group (DS Group), founded in 1929, is a diversified conglomerate with a strong presence across multiple sectors, including food and beverages, confectionery, mouth fresheners, hospitality, dairy, luxury retail, and agriculture.
Magma General Insurance Limited 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.
Elaborating on foraying into the insurance sector, a spokesperson of Patanjali Ayurved said “The sector is undergoing exciting regulatory reforms with 100 per cent FDI opening up. Structurally general insurance In India is significantly underpenetrated vis a vis developed countries and IRDAI vision for insurance for all by 2047 could go a long way in plugging the gap. 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.”
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 1000 agents, more than 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.”
