Company: AMP

State: NEW SOUTH WALES

Sector: FINANCIAL SERVICES

For more than a 150 years, AMP, Australia's largest insurance company
has assisted Australians with their personal investments. Globally the
company manages assets worth A$300 billion. AMP has expanded significantly
from its Australian base and through several strategic mergers and
acquisitions, partnerships and alliances has extensive international
operations. To date, AMP has made two major commitments to the Indian
market; one in the infrastructure investment area and the other in the
financial services sector. In 1999, AMP Henderson Global Investors and the
Unit Trust of India, UTI, together launched an India infrastructure fund,
committing a total of A$100 million. The fund focuses on opportunities in
the Indian power generation, transport, oil and gas distribution,
telecommunications and urban infrastructure areas and to date has made two
investments into India.

In 2000, AMP also entered a joint venture with the Sanmar Group of
Chennai to establish a new insurance company in India. AMP will hold the
maximum allowable stake of 26 per cent of the joint venture. The joint
venture's life insurance licence application is well advanced.

Once issued, the joint venture will focus on distributing traditional
life, pension and savings products via an agency network. AMP is impressed
by the huge potential of the Indian market, with its rapidly growing
population and middle class. Relatively high savings rates (26 per cent)
and low insurance penetration (1.24 per cent of GDP) increase India's
attractiveness to AMP. Similar parliamentary and legal systems combined
with a common language, all make India a relatively easy place to do
business.

Both AMP and AMP Henderson Global Investors developed strong
relationships with their partners and rely on their partners' connections with the Indian bureaucracy; they did not use consultants.
Seconding Australian staff to Indian companies proved useful in building
personal networks and breaking down cultural barriers. AMP's links with
UTI proved valuable in understanding Indian business practices, dealing
with government officials and conducting business in India.

AMP noted that Indian companies often prefer to enter joint ventures
with US, European and occasionally Japanese companies. AMP suggests
Australian companies should stress the differences between Australian
companies compared to European or American competitors. Marketing,
especially at cricket grounds, has proved an especially effective way of
increasing brand awareness. AMP feels Australian companies should stress
business connections with US or European companies, as Indian counterparts
will instantly recognise the value of these relationships. For example,
AMP highlights its current standing in the United Kingdom including its
partnerships with Virgin, Pearl, NPI and London Life.

Source: AMP, 2001.