> Warren Buffett Blog: Warren Buffet: India investment part 1

Monday, April 15, 2013

Warren Buffet: India investment part 1

With an aim to become a leading online insurance provider, the Indian venture of Warren Buffett-led Berkshire Group is betting big on the popularity of mobile phones and social media to boost its business. Berkshire India sells motor, travel and health insurance products online at on BerkshireInsurance.com and it will soon start selling life insurance products as a corporate agent of Bajaj Allianz Life Insurance.

Having started operations here in 2011 with just eight employees, Berkshire India — a majority owned non-direct subsidiary of US-based Berkshire Hathaway Inc — currently has more than 100 employees and headquartered at Gurgaon near here.

The company uses a unique mode for insurance sales through Internet and expects the growing popularity of Internet-enabled mobile devices, such as smartphones and tablets, to further aid to this cost-effective business model.

”...Over half of India’s total Internet user base will access Internet solely through mobile or tablet devices by 2015. Since our direct model of business employs telephone and Internet, we are positioned to enjoy a great advantage,” BerkshireInsurance.com CEO Arun Balakrishnan told PTI.

“We are confident of our business model and are continually developing it to make it even more efficient and cost effective,” he said.

India is estimated to have the world’s third-largest Internet user base of 120 million people.