Finolex puts insurance plan on back burner

Pune, Jan 22 | Updated: Jan 23 2007, 05:56am hrs
Finolex Industries has put its plans for a foray into the insurance sector on the back burner for the next couple of years.

SS Dhanorker, assistant managing director, Finolex Industries, confirmed that the company had been seeking partners for its insurance foray. However, the talks had fallen through since the company did not find the conditions laid down by the partners conducive for an entry into insurance, he said.

The company has decided to keep this project in cold storage for some time. I do not see this happening for the next couple of years, he said. The official was unwilling to divulge more details on the reasons for the apparent fall-out of the talks.

The companys SEZ plans, however, are on track. Finolex is learnt to be in talks with the Mumbai-based real estate company Peninsula Land for developing an SEZ at its 70 acre land near Pune.

Dhanorker confirmed that the talks were in progress with the same player and added the company was yet to decide whether Finolex would take the lead in the project or opt for a smaller stake. A final decision is expected in the next double of months, he added.

Sources said that the land, currently valued around Rs 150 crore, would be transferred to a special purpose vehicle that would be owned mostly by Finolex Industries.