In a glass-walled office overlooking Mumbai’s financial district, a team of analysts flick through spreadsheets that show a steady rise in new policy sales. The scene is a far cry from the boardroom in Sandton where Sanlam Group’s chief executive, Megan le Roux, recently told reporters the company’s India operations with Shriram are gaining traction.
According to le Roux, the joint venture with Shriram, an Indian financial services group, is moving beyond its start-up phase. The phrase “gaining traction” signals that the partnership is not just surviving but beginning to expand its customer base. For South African investors, the comment offers a glimpse of how a home-grown financial services firm is testing a model in one of the world’s largest emerging markets.
What the partnership actually does
Sanlam entered India through a partnership with Shriram Life Insurance in 2020. The collaboration combines Sanlam’s expertise in life insurance and asset management with Shriram’s local distribution network. In plain terms, Sanlam provides the product design and risk management, while Shriram sells the policies to Indian consumers. The venture is structured as a joint venture, a business entity owned by two parties that share profits, losses and control.
The CEO’s comment does not include specific sales figures, so the exact size of the growth remains unclear. What is clear is that the partnership is now beyond the pilot stage that many foreign insurers experience when entering India’s heavily regulated market. The Indian insurance regulator, the Insurance Regulatory and Development Authority of India (IRDAI), requires foreign firms to partner with a local entity, a rule that has shaped the structure of the Sanlam-Shriram deal.
For South African SMEs that sell products or services abroad, the Sanlam-Shriram story illustrates a pathway: find a local partner with distribution reach, align product expertise, and navigate the regulatory landscape together. It also shows that a large South African financial group can diversify its revenue streams by tapping into a market with a population of over 1.4 billion people.
However, the CEO’s optimism should be weighed against the broader environment. India’s insurance market is crowded, with domestic players such as LIC and HDFC Life holding large market shares. New entrants must compete on price, digital experience and brand trust. The partnership’s success will depend on how well it can differentiate its offerings and manage costs.
From a financial perspective, Sanlam Group reports its results in rand, but the performance of the India joint venture will affect the group’s earnings in foreign currency terms. Investors watching the rand-to-dollar exchange rate may see the India exposure as a hedge against local economic swings, but they will also need to monitor any currency volatility that could impact the conversion of Indian rupee earnings back to rand.
While le Roux’s statement is a positive signal, the company has not released detailed metrics such as new policy count, premium volume or profit contribution from the Indian operation. Those numbers will likely appear in the next quarterly report, where analysts will be able to compare the partnership’s growth rate with other Sanlam overseas ventures, such as its operations in Kenya and Nigeria.
In the meantime, the comment offers a practical lesson for South African firms considering overseas expansion: a partnership that aligns complementary strengths can accelerate market entry, but it still requires careful monitoring of regulatory compliance and competitive dynamics.
