Exide values ING Vysya Life stake at Rs 800 cr

Kolkata, Nov 29 (UNI) Exide Industries has currently valued its stake in ING Vysya Life Insurance Company Pvt Ltd at over Rs 800 crore, Exide's Chairman S.B.Ganguly said today.

Exide had picked up 50 per cent stake in ING Vysya at Rs 252 crore in July 2005.

"The valuation was done by CLS in September this year. Earlier in July 2006, the value has been pegged at Rs 600 crore by another valuer BNK," Mr Ganguly, also director of ING Vysya Life Insurance, said.

In the life insurance venture, ING Vysya Group holds 26 per cent stake, 14 per cent is being picked up by Gujarat Ambuja Cements Ltd and Enam Group holds the balance 10 per cent.

ING Vysya Life currently has a paid-up capital of Rs 540 crore.

It is planning to infuse adequate funds to increase its paid-up capital upto Rs 1380 crore by 2009, company's managing director and CEO Kshitij Jain said.

"As we grow, we will need to ramp up our capital base, and the promoters will infuse according to their shareholding pattern," he added.

Mr Ganguly said Exide intends to stick to the 50 per cent stake its holds and would invest accordingly as and when needed.

"In 2007, we will be investing about Rs 100 crore and the total investment in ING Vysya Life will go upto Rs 700 crore by 2009," he said.

He pointed out that there is no stock dilution in Exide's agenda till date.

Mr Ganguly said Exide expects to get the first dividend from the company within the next three years, which, in turn, would benefit Exide shareholders.

However, when asked whether ING Vysya Life has taken decision to pay dividend to its shareholders in 2009, Mr Jain said, "nothing has been discussed as yet." Mr Jain said ING Vysya Life targets a premium income of Rs 5,000 crore by 2009 and the figure is expected to touch the Rs 700 crore mark by December 2006.

Last year, it had earned a premium income of Rs 290 crore. About 55 per cent of its premium income comes from new business and the balance 45 per cent is contributed by the renewal of existing ones, he said.

Mr Jain said ING Vysya Life aims to bring down its operating expenses from current 60 per cent currently to 18 per cent by 2009.

"We will be able to bring down the operating costs by increasing business volume," he added.

The company has set a target of $1 billion business by 2009 against the group's target of achieving $9 billion profit by the period.

ING Vysya Life is now expanding its reach in the eastern region and would open branches in Kolkata, Bhubaneswar, Cuttack, Guwahati and Ranchi soon.

It intends to have 20 branches in eastern region by 2007 end. The company currently has eleven branches in the region.

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