Patanjali Ayurved, the wellness and FMCG company founded by Baba Ramdev, has entered the insurance sector by acquiring a majority stake in Magma General Insurance. The deal values Magma General Insurance at ₹4,500 crores. The acquisition was made through a collaboration between Patanjali and Dabur, another Indian conglomerate. As a result, Patanjali has become the largest shareholder of Magma General Insurance.
Magma General Insurance is a significant player in the Indian insurance market, with a presence across India and a portfolio of general insurance products. The company is largely owned by Adar Poonawalla, the founder of Poonawalla Group. The acquisition by Patanjali and Dabur will help Magma General Insurance leverage the former’s strong supply chain and distribution network in rural India, enhancing its reach and scope.
Patanjali Ayurved has been expanding its business beyond the FMCG sector, with forays into healthcare, education, and now insurance. The company is known for its yoga and ayurvedic products, as well as its chain of stores across India. With this acquisition, Patanjali aims to offer insurance products that align with its wellness and healthcare brand values, such as health insurance, life insurance, and general insurance products.
The deal highlights the growth opportunities in India’s insurance sector, with foreign players and domestic companies like Patanjali and Dabur seeking to expand their presence. The insurance sector is expected to grow at a CAGR of 12% over the next five years, driven by increasing awareness, rising incomes, and government initiatives to promote insurance penetration.
The partnership between Patanjali and Dabur is seen as a strategic move to tap into the vast rural market in India, where many citizens lack access to insurance products. By leveraging Patanjali’s strong network of stores and supply chain, Magma General Insurance can reach a wider audience, improve its distribution network, and increase insurance penetration in rural areas.