Generally, when a company ventures into a new business or launches a new product it goes for advertising campaign, but Religare Enterprises has decided to buck this trend and decided to enter health insurance business quietly without any advertisement campaign. It will be a stand alone health insurance company.
Religare Enterprises is all set to launch its first health insurance product in one or two days but full-fletched operations will start in last quarter of this calendar year.
Company is expecting to sell one-two lakh policies in the first year. As per company it will not do any advertising for first twelve months. It has reasonable customer base, which it can approach without any brand promotion.
Religare has also decided not to leverage its hospital chain Fortis for this venture. However, it will take help from doctors and specialists in Fortis to design its products.
Company has also tied-up with Union Bank and Corporation Bank. Both banks will take 5% equity each in the company. This will give company access to 40 million customer base of these banks.
Company also will not open new branches for its health insurance business instead it will use the existing branch network of Religare. Company will start this business with 250-300 people. This business has been already capitalized with Rs 175 crore. Company aims to break even in 3-5 years.