MUMBAI: A New Chapter in the Financial Sector

In a significant move into the financial sector, Patanjali Ayurved, alongside the DS Group, has announced the acquisition of a controlling stake in Magma General Insurance. This landmark deal, valued at an impressive Rs 4,500 crore, marks a pivotal moment for both companies as they venture into new territories.

The Strategic Acquisition

The agreement, finalized on March 12, involves the transfer of equity shares from existing shareholders, including Sanoti Properties LLP, Celica Developers, and Jaguar Advisory Services, all part of the Adar Poonawalla Group. This strategic acquisition is subject to regulatory approvals, after which the buyers plan to inject additional capital to expand the company’s operations.

Patanjali Ayurved and DS Group: A Brief Overview

Patanjali Ayurved, led by the renowned Baba Ramdev, is a leading name in the manufacturing and marketing of herbal, nature-based products, medicines, and other FMCG products. On the other hand, the DS Group, established in 1929, is a diversified Indian conglomerate with a significant presence in various sectors, including food and beverages, confectionery, and luxury retail.

Looking Ahead

Adar Poonawalla, expressing his confidence in the deal, highlighted Magma General Insurance's robust growth rate of 26% over the last five years. With over 18,000 agents and a strong corporate clientele, the company is poised for further expansion under its new ownership. This acquisition not only signifies Patanjali Group's first major foray into the financial sector but also underscores the DS Group's commitment to diversifying its portfolio.