**OT** AIG to pump in $ 400 mil
(Monday, February 28, 2000)
Surajeet Dasgupta & Bipin Chandran in New Delhi
American International Group (AIG), is planning to double its investments in India to $ 400 million by the end of the current calendar year, according to senior company officials.
"We have currently made investments in India in the region of $ 200 million and are planning to up this to $ 400 million by the end of this year," said Dalip Verma, chief executive, India, AIG.
He also said that apart from its traditional areas of investments, the company is also looking at new areas like software, Internet and Internet technology companies.
However, the company is expecting to make its majority of new investments in the telecom area it self.
Besides, it is also in the process of setting up an Asia specific Technology fund. "We are in the process of setting up this fund and India will be a major thrust area for this fund as there is a lot of activity in this area happening in India," said Verma.
He, however, refused to put a cap on the size of the fund the company is mobilising for the technology areas. He also said the proposed new technology fund by AIG will not be a private equity fund as the new technology areas are giving it the flexibility to invest in companies at the seed level it self.
"The new technology fund aimed at the emerging technologies do give us the flexibility to invest at the seed level it self and we are still working out the details of this project," he said.
In addition to this the company is also expecting to play a major role in the insurance sector once the deregulation norms are clear. It already has a joint venture with Tatas, Tata AIG targeted at the insurance sector. He also said that the company intend to work on as many areas in the insurance sector as possible.
"We are in a position to offer as many products for the insurance sector. We will extend all our products range in India as well," he said. "In addition to this, we are also planning to expand our operations to as many places as possible," he added.
AIG is also in the process of building up a national level network of agents. "We know that to operate in a country like India, one needs to have a multi channel approach," he said.
Besides, as a step to reach out to new markets the company is planing to offer its services through the Internet also.
"Internet is a major marketing thrust area for us. We will offer our service through the Internet in India," he pointed out.
In addition to this the company is also planing to increase the capacity of its existing software facility in Chennai, which it had set up in collaboration with Tata Consultancy Services (TCS).
-Business Standard |
