Warren Buffet's Entry in India - Insurance sector is just a begining

Chairman and CEO of Berkshire Hathaway Warren Buffett, is in India. He has made a quiet entry into the Indian market through his company Berkshire India, a wholly owned subsidiary of Berkshire Hathaway. The company received approval from India’s Insurance Regulator to sell auto insurance products as a corporate agent of Bajaj Allianz General Insurance. Berkshire also plans to enter the India reinsurance market. At present there is only one re-insurer in domestic market i.e the Government owned General Insurance Corporation.

The 80-year-old billionaire investor announced in Bangalore  to further grow his empire Berkshire, whose market cap stands at a staggering USD 200 billion. “Berkshire is in the acquisition hunt for good profitable businesses,” he said but refrained from spelling out an acquisition strategy that he will adopt in India. During his first brush with Indian media, Buffett had said India was a logical investment destination and the country was too big to be called an emerging market.

The ‘Oracle of Omaha’ brings me hope that India will now be discovered as one of the best destinations for Investment. The various news making rounds in the analyst circle is that, he may be eyeing the retail market of India which is expected to grow from US $ 392.63 billion in the year 2011 to US $ 674.37 billion in the year 2014 as per BMI India Retail Report.