An overview of RELIGARE and its S.W.O.T analysis and NON LIfe or General Insurance Porter's 5

2. Company Overview
 Religare Enterprises Limited is the holding company for
one of India's leading financial services groups.
 The Company was originally incorporated as "Vajreshwari
Cosmetics Private Limited" on January 30, 1984.
 It was changed to "Religare Enterprises Private Limited“
on January 10, 2006.
 Its headquarters is in New Delhi ,India and is listed on the
Bombay Stock Exchange (BSE) and National Stock
Exchange (NSE) in India.

3.  It has over 7000 employees.
 The group has a presence across more than 1450
locations in India.
 Net worth of INR 1,883.44 crore as of March 31, 2017.
 Revenue of INR 38,041 million as of March 31, 2017.

4.  Religare in latin means “To bind together “
 The Religare name is paired with the symbol of a four
leaf clover.
 Each leaf of the clover has a special meaning.
The first leaf of the clover represents HOPE.
The second leaf of the clover represents TRUST.
The third leaf of the clover represents CARE.
The fourth and final leaf of the clover represents
GOOD FORTUNES.
So the Religare works on the principle of HOPE TRUST
CARE & GOOD FORTUNES to the customers.

5. Bankers to the Company
 HDFC BANK LIMITED
 AXIS BANK LIMITED
 PUNJAB NATIONAL BANK
 STANDARD CHARTERED BANK

6. KEY PEOPLE:
 Mr. Maninder Singh
Group Chief Executive Officer
 Mr. Anuj Gulati
Managing Director & CEO
Religare Health Insurance Company Limited
 Mr. Kavi Arora
Managing Director & CEO
Religare Finvest Limited
 Mr. Nitin Jain
Managing Director & CEO
Religare Securities Limited
 Mr. Sutha Kandiah
Chief Executive Officer
Religare Capital Markets (International)

7. RELIGARE
ENTERPRISE
LTD.
Lending
SME
Finance
Religare
Finvest Ltd
Affordable
Housing
Finance
Religare
Housing
Development
Finance
Corporation
Ltd
Health
Insurance
Religare Health
Insurance Co.
Ltd
Capital
Markets
Retail
Broking
Religare
Securities
Ltd.
Institutio
nal
Equities
Religare
Capital
Markets
Ltd.

8. SWOT ANALYSIS
STRENFGTH
• Devised comprehensive framework for
Risk Management
• Satisfied workforce of the enterprise.
• Ranked among the top three retail equity
brokerage houses in India.
• Religare online trading app.
WEAKNESS
• Improper management of the business.
• Lack of proper response to consumers
grievances.
OPPORTUNITIES
• Improvement in Indian Economy
• Emerging overseas market. This helps in
expanding the business in overseas.
THREAT
• Increasing risks of new areas in the
business.
• Increasingly need of finance to run
business.
D
F
F

9. PORTERS FIVE FOR NON LIFE
INSURANCE INDUSTRY

10. THREAT OF NEW ENTRANTS
• LARGE CAPITAL REQUIRED
• CUSTOMER LOYALTY
• VAST NETWORK OF DISTRIBUTION AND
SALES
• HIGH SUNK COST
• HIGH SWITCHING COST FOR CUSTOMER

11.  LARGE CAPITAL REQUIRED: For starting any firm
you need to spend big which in turn becomes a
barrier to the new entrants.
 CUSTOMERS LOYALTY- It takes a lot of effort, time
and resources to build and maintain a brand image,
as a result they enjoy customer’s loyalty. Therefore,
there are fewer resources for new entrants to
compete in market.
 VAST NETWORK OF DISTRIBUTION – Weak
distribution network makes movement of goods
expensive and some goods may not end up reaching
customers. The cost of making a strong and vast
network positively affects non life insurance industry.

12.  HIGH SUNK COST- High sunk cost makes it
tough for a new entrant to enter into new market
since if they face a loss, all the investment will
become null, with no return in the end.
 HIGH SWITCHING COST FOR CUSTOMERS-
High switching cost makes it tough to go for a
new product and replace it with existing product
they use, it positively affects to non life insurance
industry.

13. POWER OF BUYERS
 Customer gives more importance to products-
When a customer have a personal liking towards
a company or product, they end up paying more
for that product.
 Large number of customers – When there are
large number of customers doesn’t have
bargaining power, which positively affects non life
insurance industry.

14. POWER OF SUPPLIERS
 Diverse distribution channel – A single distributor
may have less bargaining power if channel
distribution is diverse, it’ll positively affect.
 Input have less impact on cost- When inputs are
not a big component of costs, suppliers of those
inputs have less bargaining power. Low cost
inputs positively affect Non-Life Insurance "Inputs
Have Little Impact On Costs (Non-Life
Insurance)" has a significant impact.

15. THREAT OF SUBSTITUTE
 Limited number of substitutes means that
customers cannot easily switch to other products
or services of similar price and still receive the
same benefits. High switching costs positively
affect the industry.
 Customer can just let down to take any insurance
for motors and housing means which will
negatively affect the industry.

16. RIVALRY AMONG THE EXISTING
COMPETITORS
 Large industries allow multiple firms and
produces to prosper without having to steal
market share from each other. Large industry size
is a positive aspect for Non-Life Insurance.
 Interest rates and one time premiums are cut
down by the competitors to gain more market
share which is negative to the industry.
 Giving some extra benefits with the insurance
also attract customers which is also giving a
intense rivalry set up which is negative to the
industry.