Announcing the joint venture here on Wednesday, Kotak Mahindra vice-chairman Uday S Kotak, stated that his company would be keen to have 74 per cent stake in the proposed joint venture subject to approvals by the regulators. ``In case the central bank does not allow 74 per cent stake, other promoters of the company will be roped in with minimum 50 per cent of the stake with Kotak,''said Uday Kotak. This effectively means other promoters like Annad Mahindra will have a stake in the insurance joint venture.

Old Mutual's Director, emerging markets, Santosh Kurup was present at the time of Kotak's announcement. Speaking about the business plan, Uday Kotak said the venture would operate at all-India level mainly through the extensive branch network of Kotak Mahindra across the country.

``With the right kind of acturial base and product planning, the company is expected to break-even by the end of fourth year,''said Kotak. The life insurance company will have products like annuities, pension and other investment related products. The joint venture will adopt all kinds of distribution channel including non-traditional channels,'' Kotak said adding that net selling of insurance products are yet to catch up internationally.

The insurance outfit will manage its own funds and will have a significant thrust on asset management. Kotak Mahindra has just fulfilled the stipulated capital base requirement of Rs 500 crore for undertaking insurance activities. According to Kotak, his group is broadbasing its acitivities in three focussed areas -- knowledge and skill business like advisory and consultancy, wealth management business like mutual funds, brokerage, funds management and life insurance business and asset financing business like consumer and auto financings. All these initiatives would help the company to arrive at a critical mass of Rs 1,000 crore net worth by the end of the current fiscal, he said.

Besides, the group would be looking for strategic investments in areas like technology, telecom and entertainment industries to maintain sustained growth in the emerging competitive market. Currently, the net worth of the Kotak Mahindra group is around Rs 950 crore. Old Mutual, a 158-year old company, is listed on the London Stock Exchange. It has substantial life assurance business in South Africa and other developing nations in Africa.