Patanjali and DS Group to Buy Magma General Insurance for ₹4,500 Crore
Patanjali and the DS Group announced their entry into the insurance marketplace with the acquisition of Magma General Insurance.
Patanjali Ayurved, the herbal products empire led by Yoga Guru Baba Ramdev, and the DS Group, known for Rajnigandha pan masala, have agreed to acquire Magma General Insurance from Adar Poonawalla’s Sanoti Properties LLP for ₹4,500 crore, the company announced Thursday. The deal, pending regulatory approval, marks Patanjali’s ambitious plunge into India’s general insurance market.
Sanoti Properties, co-owned by Mr. Poonawalla, the billionaire chairman of Serum Institute of India, and Rising Sun Holdings Pvt Ltd, will divest its majority stake in Magma General Insurance, formerly Magma HDI General Insurance Company.
The transaction, finalized at a board meeting on Wednesday, also involves Celica Developers and Jaguar Advisory Services as co-sellers, per a share purchase agreement with Patanjali and DS Group.
Magma, which offers over 70 insurance products spanning motor, health, and commercial lines, reported a gross written premium of ₹3,295 crore in the 2024 fiscal year.
It projects ₹3,650 to ₹3,700 crore for 2025. Mr. Poonawalla hailed its steady 26 percent growth over five years, crediting a network of 18,000 agents, 2,000 corporate clients, and partnerships with 14 major automakers and 80 financial firms. “It will continue to thrive under Patanjali and DS Group,” he said.
For Patanjali, a powerhouse in herbal goods and fast-moving consumer products, the acquisition taps into a sector poised for expansion. “General insurance in India is significantly underpenetrated compared to developed markets,” a Patanjali spokesperson said, nodding to regulatory shifts allowing 100 percent foreign direct investment and the Insurance Regulatory and Development Authority’s goal of universal coverage by 2047.
The company plans to leverage its vast distribution network—200,000 retail counters, chains like Reliance Retail and Hyper City, and 250 Patanjali Mega Stores—to push Magma’s reach, especially in rural areas.
DS Group, a conglomerate spanning confectionery, hospitality, and more, joins Patanjali in injecting capital and scale into Magma, which has built a solid footing since its founding.
The deal, advised by Ambit Pvt. Ltd and law firms Khaitan & Co and Wadia Ghandy & Co for the sellers, underscores a strategic pivot for both buyers as they diversify beyond their traditional domains.
India’s insurance market, still nascent relative to its population, presents a ripe opportunity. For Patanjali and DS Group, acquiring Magma isn’t just a business move—it’s a bet on a future where coverage becomes as ubiquitous as herbal toothpaste or paan masala.
