To List Insurance Arms In 2 Years, Plans Rebranding
MUMBAI : IndusInd International Holdings (IIHL) has completed the Rs 9,650-crore acquisition of Anil Ambani-promoted Reliance Capital under the insolvency process after transferring funds to the committee of creditors. The Mauritius-based Hinduja-led company plans to list Reliance’s insurance arms within two years.
Ashok Hinduja, chairman, IIHL, said the company was focused on the insurance, broking, and asset reconstruction businesses. “Reliance Capital has around 39-40 subsidiaries. We have reviewed them and decided that most of them are shell companies. To avoid litigation after acquisition, we plan to retain only key entities,” he said, adding that the board would finalise its decision in two-to-three weeks.
The company has appo inted an agency (Landor) for re-branding. “Both insurance companies will undergo a re-branding exercise to remove the ‘Reliance’ name. The timeline depends on regulatory requirements, which could take three-to-nine months,” Hinduja said.
IIHL, also the promoter of IndusInd Bank, sees the deal as part of its plan to offer a full range of financial services. “Now, with this acquisition, we are entering the insurance business in addition to banking. We also took a 60% stake in Invesco’s mutual fund business and once approvals are in place, we will have a complete presence across the BFSI sector,” Hinduja said.
On job retention, he said, “Reliance Capital has around 1,28,000 employees. Since some subsidiaries will be divested, workforce restructuring will be necessary. Our priority is to protect employment. If possible, we will absorb affected employees within our group companies rather than laying them off.”
