Plans to form holding company to raise funds

The financial services wing of the Aditya Birla Group (ABG) has reconstructed the operations of its life insurance business for a planned fund-raising for the holding firm – reported The Economic Times.

A joint venture with Canada’s Sun Life, Birla Sun Life Insurance has reorganized its structure into eight zonal centers, two centers the north, the south and the west. These centers are headed by a zonal operations manager, which were previously handled directly by branches.

Ajay Srinivasan, head of the Aditya Birla Group’s financial services business, said: “The new structure has helped us reduce costs and improve efficiency. This will lead to higher business volumes in future.”

Recently, the RBI has given permissions for the group to form a holding company, through which funds are raised through IPO’s, or by selling stocks to private equity funds. The company is in discussions, to sell its stake, with the private equity funds.

The company’s financial services wing include life insurance, fund management, distribution and wealth management, PE and retail broking.