Despite acquiring a fresh 23% stake in IFFCO-TOKIO for Rs 2,530 crore we play the second fiddle explains the value we attach to our relationship with IFFCO, said Arthur Lee, CEO of Tokio Marine Asia Pte Ltd. He was answering questions from media persons in Delhi.
“Ours is a more than 100 years old company and when we decided to venture into India we were anxious to find a suitable partner who shares the same cultural values. I am happy to say that we share the same DNA where who controls the management does not matter”, Lee underlined.
The occasion was a joint press conference on the occasion of IFFCO agreeing to divest its 21.64% stake in IFFCO Tokio General Insurance Company Limited (IFFCO-TOKIO) to Joint Venture Partner, Tokio Marine Asia Pte Ltd (TM Asia).
Earlier, IFFCO MD said the size of shares of the two partners never came in the way of our functioning.” I admit IFFCO had no know-how of the insurance sector; if they provided brains we provided the rest of the logistic,” Awasthi said echoing Lee’s words.
Both the officials dismissed the idea of 50:50 partnership with Lee saying that in such arrangement the company is found to suffer as both the partners expect the other to take the initiative. Lee also said that he is happy with 49 per cent. “Had it be any other country than India or IFFCO I may have given you a different answer, though”, Lee added.
When queried about how IFFCO would use the money acquired by selling its stake, IFFCO MD said” It’s a technology driven world and we know that five years down the line the situation would be different; I cannot divulge what we plan to do now but the money would be used to make the cooperative strong enough to meet the future challenges.
Along with IFFCO, Indian Potash Limited (IPL) will also sell its 1.36% stake in TM Asia. The decision to divest was made after Indian Government hiked the FDI limit in the Insurance Sector to 49%, IFFCO MD added.