Aditya Birla Nuvo to invest Rs800 cr in insurance

Aditya Birla Nuvo to invest Rs800 cr in insurance

Mumbai: Aditya Birla Nuvo plans to invest Rs800 crore in its life insurance business over the next 15 months, as it has seen robust growth in the vertical, its chief financial officer Sushil Agarwal said on Monday.

The firm runs its insurance business under the Birla Sun Life Insurance banner.

It plans to invest Rs400 crore by March-end and the rest in the next fiscal he said.

“Its been targeted that way, but it will all depend on what kind of growth we achieve (in life insurance business) in this quarter," he said.

Diversified Aditya Birla Nuvo’s life insurance business alone makes up about 32% of its total income. The firm said revenues from its life insurance business rose by half to Rs1,466 crore in Oct-Dec.

The company which has interests in textiles, financial services, telecoms and chemicals had reported a quarterly net profit of Rs45.74 crore versus a net loss of Rs224 crore a year ago.

The swing to quarterly profit was helped by growth across verticals particularly in the manufacturing businesses, which includes fertilisers, carbon black and rayon production.

Its rayon yarn and fertilisers segments registered a growth in profits, carbon black swung to a net profit versus a year ago loss, while losses in its financial services and garments divisions narrowed, it said in a statement.

The firm is also considering raising funds via private equity, he said. He did not elaborate.

Shares in the firm ended up 0.36% at Rs846.15 in the Mumbai market.