Mumbai, Apr 10 (): LIC is sitting on a treasure trove which includes paintings, antiques and real estate worth Rs 70,000 crores.
This is apart from the bonds and stocks it holds. This will come as good news to millions of investors. For some, their recent investments in LIC will help them generate sufficient returns to pay for their retirement, or enable a decent lifestyle to kith and kin after their death.
LIC , the insurer has formed a committee to value its antique pieces and paintings. In fact, it was when MF Hussain, known as the Picasso of India, whose paintings welcome visitors at the insurer’s headquarters in Mumbai, wanted to buy back the painting. Probably, this was the time that the insurer realized that it was sitting on a non-financial treasure.
LIC also possesses works of KK Hebbar, a celebrated artist who produced paintings with India as the theme for most of his works. Yet another area where LIC has crores is in properties. The valuation exercise was done a few years ago.
An official from its estate department says that it is about Rs 70,000 crore. It collected in 2011-12 Rs 218 crore as rental alone, six times more than the net profit of insurance company PNB MetLife.
LIC manages assets worth Rs 13 lakh crore, spread over hundreds of cities and towns. The building one walks into in Mumbai’s Fort area belongs to LIC. Similarly, the LIC building on Anna Salai in Chennai too is of a high value.
Hindustan Unilever’s sale of real estate assets was Rs 672 crores which is more than what it earns through the sale of Lipton Tea, Bru Coffee and Knorr soups. Similarly, Hindustan Teleprinters sold off its Guindy property in Chennai and Air India is also hiving off its properties across India. Most of the PSUs are now cashing on the real estate they hold.