AIG plans new business lines

Firm to foray into asset management, consumer finance and realty development in India.

American International Group, Inc (AIG), global insurance and financial services company, is set to make an ambitious entry into three new businesses in India "" asset management, consumer finance and real estate development.

The group, which is awaiting licence from the Securities and Exchange Board of India (Sebi) for its mutual fund operations, is ready to hit the market with equity and fixed income products soon after getting the regulatory clearance, said Sunil Mehta, country head & chief executive of AIG, India.

The group has appointed Ravi Mehrotra as regional head of AIG Global Investment Group Asia Asset Management Company.

Earlier, he was with Franklin Templeton AMC as its president. Besides, Saurabh Santhalia, who was head of DSP-Merrill Lynch MF, has been appointed CEO of the proposed AIG AMC. "We will be a responsible player in the Indian financial services sector," Mehta said.

AIG, which is already into life and non-life insurance, private equity, software development and aircraft leasing business in the country, is also entering the real estate development business, building projects in partnership with local developers.

AIG is looking at "hard-core real estate development" by building commercial, residential, hospitality and integrated townships.

"We have global expertise in real estate development. We will bring the global best practices in the real estate sector here. We fully recognise the potential of the sector and will be compliant with domestic regulations and governance standards," he said.

The company has roped in Rajesh Agarwal as head of AIG Global Real Estate Division.

AIG will also focus on the consumer finance business for its growth in the country. It has already applied to the Reserve Bank of India for an Non-Banking Finance Corporation (NBFC) licence.

"That the Indian savings are growing at rapid pace has thrown up big opportunity in the consumer finance space," Mehta said.