Adar Poonawalla, CEO of Serum Institute of India, has sold his 98% stake in Magma General Insurance to Patanjali Ayurved and DS Group for a staggering ₹4,500 crore. This deal marks a significant shift in the Indian insurance sector, as Patanjali and DS Group aim to leverage their rural reach and financial expertise to boost Magma Insurance’s growth in the underpenetrated general insurance sector.
The acquisition is expected to strengthen Magma Insurance’s position, with expansion planned in rural and semi-urban markets, introduction of affordable health and agricultural insurance products, and a focus on digitization and customer-centric insurance solutions. The upcoming 2025 projected GWP is expected to be ₹3,650-3,700 crore, with a profit before tax of ₹20-25 crore.
The deal is also seen as a strategic exit for Adar Poonawalla, allowing him to focus on his core business of vaccine manufacturing. For Patanjali, the acquisition is part of their ambition to enter the financial sector, while DS Group aims to diversify their portfolio from FMCG and luxury to insurance.
The impact of the deal is expected to be significant, with Patanjali’s access to rural markets set to increase the customer base, and the company’s financial strength expected to boost growth. The entry of Patanjali and DS Group is also expected to challenge existing players in the insurance market, providing a competitive edge.
Under new ownership, Magma Insurance is expected to focus on product expansion, introducing new insurance products in health and agriculture, as well as leveraging Patanjali’s distribution network and DS Group’s financial backing. With this deal, Magma Insurance is set to become a major player in the Indian insurance market, with a projected growth rate of 26% in the next five years.