HDFC Ergo Needs Rs. 80 Crore to Expand Business

By Pradeep Yuvaraj | September 17, 2011

According to a recent press report HDFC Ergo, which is in an expansion stage is in need of about Rs. 80 crore from the promoter end.

Mr. Ritesh Kumar Chief Executive Officer HDFC Ergo General Insurance informed that they already invested about Rs 75 crore, additionally they require Rs 25-30 crore in the current fiscal and they also require Rs 50 crore in the next fiscal.

The promoters of the HDFC Ergo are HDFC and Ergo International, the insurance company’s equity share capital is RS 500 crore.

Mr. Kumar said that the company will attain profit in the near future so it doesn’t require any additional support from the promoters.

Reports said that the April-June net profit results were about Rs. 14 crore and the company will hold on the profit for the rest of the months. The premium collection is about Rs 1300 crore, and the company has planned to achieve 35-40 percent profit in future.

Reports also said that the revenue to the company was particularly from the three main segments in which 1/3 is from the accident and health insurance and the second segment is the motor and the third is from the corporate. As a result the company has attained growth in almost all segments.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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