Yoga Guru Ramdev’s Patanjali Ayurved and the Dharampal Satyapal Group (DS Group), known for Rajnigandha, will acquire Magma General Insurance from Sanoti Properties LLP. The deal, valued at ₹4,500 crore, was announced in a company statement on Thursday.
This acquisition, which requires regulatory approval, will introduce Patanjali Ayurved, a significant manufacturer of herbal and nature-based products, into the general insurance market. Magma General Insurance is primarily owned by Sanoti Properties LLP, a joint venture between Adar Poonawalla and Rising Sun Holdings Pvt Ltd. The board of the insurance company reached this decision at a meeting held on March 12, 2025.
Magma General Insurance, formerly known as Magma HDI General Insurance Company Ltd, provides a range of insurance options. With over 70 products across various categories, it covers major risks in the general insurance sector. The company reported a Gross Written Premium (GWP) of ₹3,295 crore in FY24 and expects to achieve approximately ₹3,650-3,700 crore in FY25, with a Profit Before Tax of ₹20-25 crore.
According to a Patanjali Ayurved spokesperson, “The sector is undergoing exciting regulatory reforms with 100 per cent FDI opening up. Structurally general insurance in India is significantly underpenetrated vis a vis developed countries and IRDAI vision for insurance for all by 2047 could go a long way in plugging the gap.”
The spokesperson added that Magma General Insurance is positioned to leverage Patanjali Ayurved’s significant distribution strength. The company’s products are available at 200,000 counters nationwide, including major retail chains like Reliance Retail, Hyper City, and Star Bazaar, as well as 250 Patanjali Mega Stores, which can help boost growth.
Adar Poonawalla, Chairman of Serum Institute of India, commented, “We are proud that over the last few years, Magma General Insurance has built up its business carefully, both on the retail and corporate side, with over 18000 agents, more than 2000 corporates, 14 OEMs including all the large OEMs, and more than 80 players in the financial services business. It has delivered a growth rate of 26 per cent over the last 5 years and will continue to make a strong contribution to the general insurance industry, under the new ownership of Patanjali Ayurved and the DS Group.”
Ambit Pvt. Ltd served as the exclusive financial advisor, with Khaitan & Co and Wadia Gandhy & Co acting as legal advisors to the selling shareholders.
