New Delhi: Mahindra & Mahindra (M&M) on Thursday announced its entry into the insurance sector through a 50:50 joint venture with Toronto-based Manulife, with Rs 7,200 crore investment.
Mahindra Group CEO and MD Anish Shah said both partners aim to build a business valued between Rs 18,000 crore and Rs 30,000 crore over the next decade.
The joint venture seeks to become the leading life insurer in rural and semi-urban India while expanding its footprint in urban markets with a focus on protection products.
Each partner will invest up to Rs 3,600 crore ($400 million), with Rs 1,250 crore ($140 million) to be in-fused in the first five years. M&M’s share will be funded through dividends from Mahindra Finance.
The firms plan to seek regulatory approval within three months and expect operations to begin in 15–18 months. Shah said the JV will leverage M&M’s strong distribution network and Manulife’s global insurance
expertise.