Patanjali Ayurved and DS Group to Acquire Magma General Insurance in ₹4,500 Crore Deal

New Delhi — In a landmark development within India’s insurance sector, Patanjali Ayurved Limited and DS Group have entered into a definitive agreement to acquire Magma General Insurance Limited from Sanoti Properties LLP, owned by billionaire Adar Poonawalla. The deal, valued at approximately ₹4,500 crore, was formalized through a Share Purchase Agreement (SPA) and includes co-sellers Celica Developers and Jaguar Advisory Services. The transaction is subject to regulatory approvals.

Magma General Insurance, formerly Magma HDI General Insurance Company Limited, has built a robust portfolio of more than 70 insurance products. The company caters to both retail and commercial segments with offerings such as motor insurance (covering cars, two-wheelers, commercial vehicles, and tractors), health insurance, personal accident cover, home insurance, as well as commercial solutions like fire, engineering, liability, and marine insurance.

The insurer has shown consistent financial performance, reporting a Gross Written Premium (GWP) of ₹3,295 crore in FY24. Projections for FY25 indicate a GWP of ₹3,650-3,700 crore, with an estimated Profit Before Tax (PBT) between ₹20-25 crore.

This acquisition marks Patanjali Ayurved’s and DS Group’s strategic foray into India’s evolving insurance sector. Founded in 2006, Patanjali is a major player in the herbal and natural products space, while the DS Group, established in 1929, is a diversified conglomerate with interests spanning food and beverages, confectionery, hospitality, dairy, luxury retail, and agriculture.

A Patanjali spokesperson emphasized the growth potential in India’s underpenetrated general insurance market. “With the IRDAI’s vision of ‘Insurance for All by 2047,’ we see a unique opportunity to bridge the gap. Magma General Insurance stands to benefit from our extensive distribution network, which includes over 2,00,000 outlets, major retail chains like Reliance Retail, Hyper City, and Star Bazaar, as well as 250 Patanjali Mega Stores. We are poised to inject fresh capital and tap into the vast rural markets.”

Reflecting on the deal, Adar Poonawalla said, “Magma General Insurance has achieved remarkable milestones, growing its reach to over 1,000 agents, numerous corporates, 14 OEM partnerships—including all major players—and more than 80 financial services alliances. With a 26% growth rate over the past five years, we are confident that Patanjali and DS Group will take the company to new heights and further strengthen India’s general insurance ecosystem.”

Industry experts see this acquisition as a pivotal moment for India’s insurance landscape. With Patanjali’s expansive retail presence and DS Group’s diversified business acumen, the move is expected to unlock new synergies and deepen insurance penetration, especially in untapped markets.

The deal also reflects broader trends in India’s insurance industry, which is currently undergoing significant reforms, including the opening up of 100% foreign direct investment (FDI). Analysts suggest this could encourage more consumer-centric conglomerates to enter the insurance space, leveraging brand equity and distribution strengths.

As the sector anticipates further consolidation and innovation, Patanjali and DS Group’s entry is being closely watched as a potential catalyst for transformative growth.