Description
This is a documentation is about company analysis of Religare.
Religare – Company Analysis
1) Industry trends: Indian and Global perspectives, recent happenings Financial industry Trend as per Indian perspective www.rbi.com : The Annual Monetary Policy Statement (3 May, 2011) of the Reserve Bank of India (RBI) or 2011-2012 was set against the backdrop of a sharp rise in inflation and elevated inflationary expectations. Even the inflation pressures is there the moderating growth, particularly in capital goods production and investment spending, suggesting the cumulative impact of monetary actions on demand. With the growth rate expected to moderate in 2011-2012 vis-avis 2010-2011, based on the assumption of a normal monsoon and crude oil prices averaging US$ 110 a barrel over 2011-2012, the baseline projection of real GDP growth for 2011-2012 was placed at 8 per cent. Global perspective: Financial Services firms have been very cautious about getting deeply involved with social media. The best case I’ve found thus far was at Lloyds Banking Group (LBG) in the UK, who are using twitter for customer service, facebook for community and youtube for education. Also as per Todays Financial Bank brands have been hit hard, Recent Happenings : The Committee of finance met for the first time on 6th March, 2012 and felt that the existing provisions of the Direct Tax Code Bill 2010(DTC) needed certain modifications and therefore various specific suggestions Religarere made in this regard. These included suggestions on defining various terms as appearing in the DTC, changing the procedure of invoking the provisions of GAAR, prescribing time limits etc. Proposals for inclusion the guidelines u/s 101: The Committee makes the following recommendations to be incorporated in the guidelines. ? ? ? Monetary threshold Prescription of statutory forms Prescribing the time limits etc. 2) PEST Analysis: Political, economic, social and technical aspects related to the industry Political : ? Despite efforts to develop finance and its associated institutions, financial development around the world has been uneven, with prominent explanations for its variation tied to a nation’s corporate and securities law institutions, its legal origin, its
trade openness, and its legacy of colonial endowments. The unevenness of financial development provides reason to search for other important determinants of, and impediments to, financial development beyond those found significant in the past decade. Other factors could also explain differences in financial development. Findings in adjacent disciplines suggest that political instability strongly affects overall economic development. That instability, which is often rooted in severe economic inequality, could affect financial development as Religarell on overall economic development. And Religare indeed find that political stability and the fundamental conditions that induce it should be added to Religare understanding of the key determinants of Modern financial development.
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1) Economical: Broadly, business finance may be divided into two classes- long term and short term. ? Long term finance is needed for the purchase of assets like land, machinery and other fixtures, which can be used for long periods. These assets are also called fixed or block capital because their value is dissipated slowly and they cannot be readily converted into cash. ? Short term finance is required for the current transactions of business such as purchase of raw materials, for making finished products, payment of wages and salary of staff, rent etc. It is called working capital because it is utilised in the Day-to-day work of the enterprise. It is also called liquid capital, because either it is held in the form of cash or can be easily converted into cash. The proportions of fixed and working capital depend upon the nature of business, the stage of development reached by it, its scale of operation etc. Working capital is generally financed by own as Religarell as borroReligared sReligareces. 2) Social : ? World events have shown that lending and investment practices in the finance industry have a profound impact on society. In response, leading institutions have been adopting better stewardship for sustaining people and community prosperity, while also designing new models for investing in environmental technologies. 3) Technological : ? In the past few decades there has been a revolution in computing and communications, and all indications are that technological progress and use of information technology will continue at a rapid pace. Accompanying and supporting the dramatic increases in the poReligarer and use of new information technologies has been the declining cost of communications as a result of both technological improvements and increased competition. According to Moore's law the processing
poReligarer of microchips is doubling every 18 months. These advances present many ? significant opportunities but also pose major challenges. Today, Innovation in IT are having wide-ranging effects across financial domains. Makers are acting on issues involving economic productivity, intellectual property rights, privacy protection, and access to information. Choices made now will have long lasting consequences, and attention must be paid to their social and economic impacts.
3) Competitor Analysis: Analyze pricing, quality, distribution and partnerships of the nearest competitor of the company Pricing data as of March 2011: The Current Price of Religare is 341.85 and that of its nearest competitor Reliance capital is 351.80. The Total Liabilities of Reliance is 25,510.71. and that of Religare is 3201.21 Net current assets of Reliance are 14,085.58 and that of Religare is 81.87. Partners of Reliance Capital the nearest competitor of Religare. Mr. Gary Baker is the President & CEO of Cochran, Cochran & Yale LLC Mr. Roger O’Brien is President of O’Brien Associates, LLC Mr. Patrick White founded Document Security Systems, Inc Mr. David Klein is the Senior Vice President and Treasurer of Constellation Brands, Inc a Fortune 1000™ company
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4) SWOT Analysis: Strengths, weakness, opportunities and threats faced by the industry Strength : ? The finance industry offers products of a varying nature to customers and institutions. This includes entities designated as banks, investment brokers, investment brokerage houses that handle mergers and acquisitions, and other investment entities. Financial products also include various annuities, financial advisory services, tax compliance companies, and many other varieties. Financial companies are very diverse and fit a variety of risk profiles. Due to the market crash of 2008 and 2009, the finance industry got hard hit and stock prices plummeted. Many of these companies have now turned around and have improved their financial picture Religareakness : ? The financial services industry includes companies whose sales come from the management of money for individuals and institutions. Financial services companies include banks, insurance companies, brokerage, Religarealth management, and credit
card companies. Financial Trading Strategy: The financial industry is sensitive to economic cycles. ? As currently the global economy is not in good shape, It directly hampers the financial industry. Opportunities: ? As the global economy is slowing down the graph of opportunities is going down. HoReligarever in some of the sectors like real estate investors are still investing As investors see prices going up, they want to get in on the game, and lenders give them the money to do it. Real estate developers and sellers seek quick profits by putting up new buildings until excess capacity results. When developers can’t sell or rent their space, they default on the loans, and the bubble bursts. Threats : ? Global economy slowdown is the major threat to Financial industries all over the world. ? The problems of the existing regulation of financial markets are serious, will significantly affect the structure of the financial industry, and will delay or reduce the potential benefits of the financial services revolution.
Company Analysis:
1) Company description (a brief introduction regarding what businesses the
company is into) Religare Enterprises Limited (REL) is a leading emerging markets financial services group anchored in India. In India, Religare offers a wide array of services including broking, insurance, asset management, lending solutions, investment banking and Religarealth management. With a network of over 2,200 business centres across 550 plus locations, and more than a million clients, REL enjoys a dominant presence in the Indian financial services space. Religare also built an Emerging Markets Capital Markets Platform and a multi-boutique Global Asset Management platform to tap the broader opportunities offered by the most promising emerging markets around the world.
2) General information about the company: location of the headquarters, year of
founding, shareholding pattern, number of employees, top management, etc. Religare Enterprises Limited (REL) is a diversified financial services group headquartered in New Delhi, India. Religare also has a presence in Hong Kong, Singapore, the United States, the United Kingdom, Japan, the Middle East and Sri Lanka.
Religare Finvest, a group company, was founded in 2001. The shareholding Pattern of Relligare is as follows : Promoters : 71.80 % Institutional Investors : 2.63% Other Investors : 9.68% General Public : 15.88 % The Top Management of Religare are as follows: Mr. Sunil Godhwani Chairman & Managing Director Religare Enterprises Limited Mr. Shachindra Nath Group Chief Executive Officer Religare Enterprises Limited Mr. Anil Saxena Director & Group CFO Mr. Ravi Mehrotra Director Mr. Harpal Singh Non Executive Director Mr. Stuart D Pearce Director Mr. Deepak Ramchand Sabnani Independent Director Mr. Padam Bahl Independent Director Mr. J. W. Balani Independent Director Ms. Sunita Naidoo Independent Director Mr. R. K. Shetty Alternate to Mr. J. W. Balani
Capt. G. P. S. Bhalla Alternate to Mr. Deepak Sabnani Got the Info. From www.religare.com.
Financial performance of the company: Sales, net profit, segment wise performance of the past 1 year Financial Performance of Religare : Current asset = 852528194 /Current Liabilities = 262082812 /Current Ratio = 3.25 As the current ratio is greater than 1 that is on the greater side the company is in good shape. Net Profit Before Tax is 106,076,250/- which is quite good. Segment-wise Performance Religare income from operations primarily comprises of commissions from securities and commodities trading, distribution of financial products such as insurance, mutual funds, bonds and retail subscriptions for IPOs, income from capital market financing facilities and asset financing activities, income from Arbitrage and Trading of securities and Derivatives, recovery of transaction fees from clients, interest on Fixed Deposits with Banks, management fees received under asset management services and fees received for Religare investment banking and financial advisory services. Religare’s income from operations was Rs. Rs. 23,504.98 million for the Fiscal 2011, as compared to Rs. 15,509.82 million for the Fiscal 2010, representing an increase of 51.55%. Mentioned below are details of the comparison of income from Religare operations betReligareen Fiscals 2011 and 2010, along with the reasons for increase in this income.
4) SWOT Analysis: Strengths, weakness, opportunities and threats faced by the
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company Strength : Religare asset management is named as one of the best performing fund houses also Religare Tax Plan, Religare Mid n Small Cap, Religare Mid Cap and Religare Active Income Fund (Plan A) named among the top ten mutual funds across categories by Money Today in their cover story listing the best schemes on the basis of their three year performance. This shows the growth of Religare in comparison to other Financial Institutions. It has good research Team No annual maintenance charges for their online broking services. Religare expect to end this fiscal with a profit of around Rs 350 crore. Weakness :
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It has changed its name from FORTIS to Religare where the maximum customer don’t know about this. Opportunities : Financial service sectors in Indian is growing so the opportunities in Religare are also increased. Financial services group Religare plans to increase lending to small and medium enterpris es The Company also expects to show profits this fiscal. Religare plans quiet entry into health insurance. Religare is launching a health insurance policy they aims to sell 1 – 2 lakh policies in the first year The Company will be the standalone company and not the general one.
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Threats : ? Cut throat competition from big corporate giants like Reliance and ICICI. ? As they changed their name customers still don’t know about the change.
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Various strategies employed by the company in the course of conducting business (in the form of alliances, joint ventures, product innovation/ expansion strategies, acquisitions/ divestitures and any such strategies that you think may affect the business of the company) in past 2 years. At the corporate level, business unit level and functional or departmentlevel of the firm Starting as a pure-play retail broking operation Religare offer an integrated suite of products and services comprising broking, distribution, lending, asset management, wealth management and insurance. Anchored in India, Religare are now building emerging markets financial services business. Religare vision is ''To be the leading emerging markets financial services group driven by innovation, delivering superior value for all stakeholders globally.'' The vision is being fulfilled by three pillars strategy that seeks to maximize value from Religare vast presence in India, and use the learning’s from Religare home market to develop a financial services franchise connecting emerging markets globally. Business Division: According to various products, divisions, markets, etc. Religare three pillars strategy : Integrated Indian Financial Services Platform www.religare.com: The diversity of Religare offerings – comprising broking, lending, asset management, wealth management and insurance – means that Religare customers can fulfil most of their financial services needs under a single roof. Religare touches the lives of over a million people, be it providing small investors access to profitable opportunities in the capital markets, linking agriculturists and traders in the mandis of India to global commodity markets, assisting the young and old alike to accumulate savings to achieve their life goals, helping entrepreneurial dreams come to life by funding thousands of
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micro, small and medium enterprises or providing savings and protection options to deal with the uncertainties of life. Religare businesses are making a mark in the marketplace: our retail equity broking arm was named among the top three retail equity brokerage houses in India by Dun & Bradstreet in its report, “India’s Leading Equity Broking Houses 2010”; our commodities broking arm was named “India’s Best Commodities Broker” by UTV Bloomberg; in a short span of three years, our asset management business, with average assets under management of 115 billion for the quarter ended March 31, 2011, became the 13th largest in India out of 43 fund houses; our lending business closed FY11 with a loan book of 89.67 billion, reflecting 119% growth year-on-year; our life insurance joint venture recorded 83% higher new business premium in FY11 than a year ago. As the Indian economy continues on its growth path, the demand for financial products and services is set to grow exponentially. The evolution of the market will mean that Indian consumers, like their counterparts in the West, will become savvier and demand newer and more sophisticated financial products. These two factors will combine to form a beneficial spiral for trusted financial services providers; Religare is fully geared to make the most of this opportunity. Strategies devised as per regions: ? An Emerging Markets Capital Markets Platform : www.religare.com It intermediates the flow of capital into and out of emerging markets based on its global reach and an on-the-ground understanding of how emerging markets function. Global Asset Management Platform -www.religare.com: Religare, with its commitment to emerging markets, saw another very large opportunity here one that marries our emerging markets expertise with the investing skills embedded in developed world asset managers – and set out to create a global asset management platform that seeks to unlock value in western asset managers. Our global asset management platform is built on three fundamental principles: we will acquire niche asset managers in the alternatives space; we will acquire controlling stakes in the acquired affiliates but will ensure that the existing management continues to run the investment process as before, and along with the founders, has a significant minority stake; and we will use our network to provide common distribution infrastructure as also access to investment opportunities in emerging markets. We have laid the foundation of our distribution infrastructure and completed the first phase of acquisitions, and sown the seeds of a disruptive asset management model.
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Regional: Strategies devised as per regions, geographies, etc. Religare is divided into Indian business and Global Business: Indian Business is categorised into
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Broking Lending Asset Management Wealth Management Insurance Global Business is categorised into EM capital Markets Global Asset Management
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doc_826247525.docx
This is a documentation is about company analysis of Religare.
Religare – Company Analysis
1) Industry trends: Indian and Global perspectives, recent happenings Financial industry Trend as per Indian perspective www.rbi.com : The Annual Monetary Policy Statement (3 May, 2011) of the Reserve Bank of India (RBI) or 2011-2012 was set against the backdrop of a sharp rise in inflation and elevated inflationary expectations. Even the inflation pressures is there the moderating growth, particularly in capital goods production and investment spending, suggesting the cumulative impact of monetary actions on demand. With the growth rate expected to moderate in 2011-2012 vis-avis 2010-2011, based on the assumption of a normal monsoon and crude oil prices averaging US$ 110 a barrel over 2011-2012, the baseline projection of real GDP growth for 2011-2012 was placed at 8 per cent. Global perspective: Financial Services firms have been very cautious about getting deeply involved with social media. The best case I’ve found thus far was at Lloyds Banking Group (LBG) in the UK, who are using twitter for customer service, facebook for community and youtube for education. Also as per Todays Financial Bank brands have been hit hard, Recent Happenings : The Committee of finance met for the first time on 6th March, 2012 and felt that the existing provisions of the Direct Tax Code Bill 2010(DTC) needed certain modifications and therefore various specific suggestions Religarere made in this regard. These included suggestions on defining various terms as appearing in the DTC, changing the procedure of invoking the provisions of GAAR, prescribing time limits etc. Proposals for inclusion the guidelines u/s 101: The Committee makes the following recommendations to be incorporated in the guidelines. ? ? ? Monetary threshold Prescription of statutory forms Prescribing the time limits etc. 2) PEST Analysis: Political, economic, social and technical aspects related to the industry Political : ? Despite efforts to develop finance and its associated institutions, financial development around the world has been uneven, with prominent explanations for its variation tied to a nation’s corporate and securities law institutions, its legal origin, its
trade openness, and its legacy of colonial endowments. The unevenness of financial development provides reason to search for other important determinants of, and impediments to, financial development beyond those found significant in the past decade. Other factors could also explain differences in financial development. Findings in adjacent disciplines suggest that political instability strongly affects overall economic development. That instability, which is often rooted in severe economic inequality, could affect financial development as Religarell on overall economic development. And Religare indeed find that political stability and the fundamental conditions that induce it should be added to Religare understanding of the key determinants of Modern financial development.
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1) Economical: Broadly, business finance may be divided into two classes- long term and short term. ? Long term finance is needed for the purchase of assets like land, machinery and other fixtures, which can be used for long periods. These assets are also called fixed or block capital because their value is dissipated slowly and they cannot be readily converted into cash. ? Short term finance is required for the current transactions of business such as purchase of raw materials, for making finished products, payment of wages and salary of staff, rent etc. It is called working capital because it is utilised in the Day-to-day work of the enterprise. It is also called liquid capital, because either it is held in the form of cash or can be easily converted into cash. The proportions of fixed and working capital depend upon the nature of business, the stage of development reached by it, its scale of operation etc. Working capital is generally financed by own as Religarell as borroReligared sReligareces. 2) Social : ? World events have shown that lending and investment practices in the finance industry have a profound impact on society. In response, leading institutions have been adopting better stewardship for sustaining people and community prosperity, while also designing new models for investing in environmental technologies. 3) Technological : ? In the past few decades there has been a revolution in computing and communications, and all indications are that technological progress and use of information technology will continue at a rapid pace. Accompanying and supporting the dramatic increases in the poReligarer and use of new information technologies has been the declining cost of communications as a result of both technological improvements and increased competition. According to Moore's law the processing
poReligarer of microchips is doubling every 18 months. These advances present many ? significant opportunities but also pose major challenges. Today, Innovation in IT are having wide-ranging effects across financial domains. Makers are acting on issues involving economic productivity, intellectual property rights, privacy protection, and access to information. Choices made now will have long lasting consequences, and attention must be paid to their social and economic impacts.
3) Competitor Analysis: Analyze pricing, quality, distribution and partnerships of the nearest competitor of the company Pricing data as of March 2011: The Current Price of Religare is 341.85 and that of its nearest competitor Reliance capital is 351.80. The Total Liabilities of Reliance is 25,510.71. and that of Religare is 3201.21 Net current assets of Reliance are 14,085.58 and that of Religare is 81.87. Partners of Reliance Capital the nearest competitor of Religare. Mr. Gary Baker is the President & CEO of Cochran, Cochran & Yale LLC Mr. Roger O’Brien is President of O’Brien Associates, LLC Mr. Patrick White founded Document Security Systems, Inc Mr. David Klein is the Senior Vice President and Treasurer of Constellation Brands, Inc a Fortune 1000™ company
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4) SWOT Analysis: Strengths, weakness, opportunities and threats faced by the industry Strength : ? The finance industry offers products of a varying nature to customers and institutions. This includes entities designated as banks, investment brokers, investment brokerage houses that handle mergers and acquisitions, and other investment entities. Financial products also include various annuities, financial advisory services, tax compliance companies, and many other varieties. Financial companies are very diverse and fit a variety of risk profiles. Due to the market crash of 2008 and 2009, the finance industry got hard hit and stock prices plummeted. Many of these companies have now turned around and have improved their financial picture Religareakness : ? The financial services industry includes companies whose sales come from the management of money for individuals and institutions. Financial services companies include banks, insurance companies, brokerage, Religarealth management, and credit
card companies. Financial Trading Strategy: The financial industry is sensitive to economic cycles. ? As currently the global economy is not in good shape, It directly hampers the financial industry. Opportunities: ? As the global economy is slowing down the graph of opportunities is going down. HoReligarever in some of the sectors like real estate investors are still investing As investors see prices going up, they want to get in on the game, and lenders give them the money to do it. Real estate developers and sellers seek quick profits by putting up new buildings until excess capacity results. When developers can’t sell or rent their space, they default on the loans, and the bubble bursts. Threats : ? Global economy slowdown is the major threat to Financial industries all over the world. ? The problems of the existing regulation of financial markets are serious, will significantly affect the structure of the financial industry, and will delay or reduce the potential benefits of the financial services revolution.
Company Analysis:
1) Company description (a brief introduction regarding what businesses the
company is into) Religare Enterprises Limited (REL) is a leading emerging markets financial services group anchored in India. In India, Religare offers a wide array of services including broking, insurance, asset management, lending solutions, investment banking and Religarealth management. With a network of over 2,200 business centres across 550 plus locations, and more than a million clients, REL enjoys a dominant presence in the Indian financial services space. Religare also built an Emerging Markets Capital Markets Platform and a multi-boutique Global Asset Management platform to tap the broader opportunities offered by the most promising emerging markets around the world.
2) General information about the company: location of the headquarters, year of
founding, shareholding pattern, number of employees, top management, etc. Religare Enterprises Limited (REL) is a diversified financial services group headquartered in New Delhi, India. Religare also has a presence in Hong Kong, Singapore, the United States, the United Kingdom, Japan, the Middle East and Sri Lanka.
Religare Finvest, a group company, was founded in 2001. The shareholding Pattern of Relligare is as follows : Promoters : 71.80 % Institutional Investors : 2.63% Other Investors : 9.68% General Public : 15.88 % The Top Management of Religare are as follows: Mr. Sunil Godhwani Chairman & Managing Director Religare Enterprises Limited Mr. Shachindra Nath Group Chief Executive Officer Religare Enterprises Limited Mr. Anil Saxena Director & Group CFO Mr. Ravi Mehrotra Director Mr. Harpal Singh Non Executive Director Mr. Stuart D Pearce Director Mr. Deepak Ramchand Sabnani Independent Director Mr. Padam Bahl Independent Director Mr. J. W. Balani Independent Director Ms. Sunita Naidoo Independent Director Mr. R. K. Shetty Alternate to Mr. J. W. Balani
Capt. G. P. S. Bhalla Alternate to Mr. Deepak Sabnani Got the Info. From www.religare.com.
Financial performance of the company: Sales, net profit, segment wise performance of the past 1 year Financial Performance of Religare : Current asset = 852528194 /Current Liabilities = 262082812 /Current Ratio = 3.25 As the current ratio is greater than 1 that is on the greater side the company is in good shape. Net Profit Before Tax is 106,076,250/- which is quite good. Segment-wise Performance Religare income from operations primarily comprises of commissions from securities and commodities trading, distribution of financial products such as insurance, mutual funds, bonds and retail subscriptions for IPOs, income from capital market financing facilities and asset financing activities, income from Arbitrage and Trading of securities and Derivatives, recovery of transaction fees from clients, interest on Fixed Deposits with Banks, management fees received under asset management services and fees received for Religare investment banking and financial advisory services. Religare’s income from operations was Rs. Rs. 23,504.98 million for the Fiscal 2011, as compared to Rs. 15,509.82 million for the Fiscal 2010, representing an increase of 51.55%. Mentioned below are details of the comparison of income from Religare operations betReligareen Fiscals 2011 and 2010, along with the reasons for increase in this income.
4) SWOT Analysis: Strengths, weakness, opportunities and threats faced by the
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company Strength : Religare asset management is named as one of the best performing fund houses also Religare Tax Plan, Religare Mid n Small Cap, Religare Mid Cap and Religare Active Income Fund (Plan A) named among the top ten mutual funds across categories by Money Today in their cover story listing the best schemes on the basis of their three year performance. This shows the growth of Religare in comparison to other Financial Institutions. It has good research Team No annual maintenance charges for their online broking services. Religare expect to end this fiscal with a profit of around Rs 350 crore. Weakness :
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It has changed its name from FORTIS to Religare where the maximum customer don’t know about this. Opportunities : Financial service sectors in Indian is growing so the opportunities in Religare are also increased. Financial services group Religare plans to increase lending to small and medium enterpris es The Company also expects to show profits this fiscal. Religare plans quiet entry into health insurance. Religare is launching a health insurance policy they aims to sell 1 – 2 lakh policies in the first year The Company will be the standalone company and not the general one.
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Threats : ? Cut throat competition from big corporate giants like Reliance and ICICI. ? As they changed their name customers still don’t know about the change.
5)
?
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Various strategies employed by the company in the course of conducting business (in the form of alliances, joint ventures, product innovation/ expansion strategies, acquisitions/ divestitures and any such strategies that you think may affect the business of the company) in past 2 years. At the corporate level, business unit level and functional or departmentlevel of the firm Starting as a pure-play retail broking operation Religare offer an integrated suite of products and services comprising broking, distribution, lending, asset management, wealth management and insurance. Anchored in India, Religare are now building emerging markets financial services business. Religare vision is ''To be the leading emerging markets financial services group driven by innovation, delivering superior value for all stakeholders globally.'' The vision is being fulfilled by three pillars strategy that seeks to maximize value from Religare vast presence in India, and use the learning’s from Religare home market to develop a financial services franchise connecting emerging markets globally. Business Division: According to various products, divisions, markets, etc. Religare three pillars strategy : Integrated Indian Financial Services Platform www.religare.com: The diversity of Religare offerings – comprising broking, lending, asset management, wealth management and insurance – means that Religare customers can fulfil most of their financial services needs under a single roof. Religare touches the lives of over a million people, be it providing small investors access to profitable opportunities in the capital markets, linking agriculturists and traders in the mandis of India to global commodity markets, assisting the young and old alike to accumulate savings to achieve their life goals, helping entrepreneurial dreams come to life by funding thousands of
?
micro, small and medium enterprises or providing savings and protection options to deal with the uncertainties of life. Religare businesses are making a mark in the marketplace: our retail equity broking arm was named among the top three retail equity brokerage houses in India by Dun & Bradstreet in its report, “India’s Leading Equity Broking Houses 2010”; our commodities broking arm was named “India’s Best Commodities Broker” by UTV Bloomberg; in a short span of three years, our asset management business, with average assets under management of 115 billion for the quarter ended March 31, 2011, became the 13th largest in India out of 43 fund houses; our lending business closed FY11 with a loan book of 89.67 billion, reflecting 119% growth year-on-year; our life insurance joint venture recorded 83% higher new business premium in FY11 than a year ago. As the Indian economy continues on its growth path, the demand for financial products and services is set to grow exponentially. The evolution of the market will mean that Indian consumers, like their counterparts in the West, will become savvier and demand newer and more sophisticated financial products. These two factors will combine to form a beneficial spiral for trusted financial services providers; Religare is fully geared to make the most of this opportunity. Strategies devised as per regions: ? An Emerging Markets Capital Markets Platform : www.religare.com It intermediates the flow of capital into and out of emerging markets based on its global reach and an on-the-ground understanding of how emerging markets function. Global Asset Management Platform -www.religare.com: Religare, with its commitment to emerging markets, saw another very large opportunity here one that marries our emerging markets expertise with the investing skills embedded in developed world asset managers – and set out to create a global asset management platform that seeks to unlock value in western asset managers. Our global asset management platform is built on three fundamental principles: we will acquire niche asset managers in the alternatives space; we will acquire controlling stakes in the acquired affiliates but will ensure that the existing management continues to run the investment process as before, and along with the founders, has a significant minority stake; and we will use our network to provide common distribution infrastructure as also access to investment opportunities in emerging markets. We have laid the foundation of our distribution infrastructure and completed the first phase of acquisitions, and sown the seeds of a disruptive asset management model.
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Regional: Strategies devised as per regions, geographies, etc. Religare is divided into Indian business and Global Business: Indian Business is categorised into
? ? ? ? ?
Broking Lending Asset Management Wealth Management Insurance Global Business is categorised into EM capital Markets Global Asset Management
? ?
doc_826247525.docx