Aditya Birla Group chief Kumar Mangalam Birla has said the financial services sector would chart a robust growth path and his business conglomerate is set to make new records in this space.
“I believe this (financial services) sector is bound to grow as we go forward, since much of its potential is still unlocked,” Birla said. “Backed by its strong customer base, nation-wide distribution footprint and brand salience, Aditya Birla Financial Services is all set to create a new record,” he said.
Listing the performance of various businesses in his annual message to the shareholders of Aditya Birla Nuvo Ltd, Birla said the financial services business had become the largest contributor to the company's profits.
Aditya Birla Nuvo Ltd is the group's holding company for financial services, telecom, fashion and lifestyle, IT-ITeS and manufacturing businesses. “I am pleased to record that our financial services business continues to bolster its position as a significant non-bank financial services player,” Birla said.
“Despite the tectonic shifts in the environment, with volatile capital markets and regulatory changes, Aditya Birla Financial Services posted revenue of $1.3 billion (Rs6,550 crore) and a 27 per cent bottom-line growth,” he added.
Aditya Birla Financial Services (ABFS) recorded a net profit of Rs539 crore in 2011-12, up from Rs309 crore in the previous year. The revenue rose from Rs6,313 crore to Rs6,550 crore, with significant contribution from Birla Sun Life Insurance and its non-deposit taking NBFC subsidiary, Aditya Birla Finance Ltd.
Aditya Birla Nuvo said, in its annual report for 2011-12, it would continue to pursue strategic objectives, including growing assets size in the life insurance and the asset management businesses and scaling up of the lending book size in the NBFC business.
Birla further said the group's financial services business had been steadily expanding its market share across almost all verticals.
“Today, it is managing assets of $17.5 billion and ranks among the top five fund managers in India, excluding banks and LIC, and is also the 5th largest private player in the life insurance sector. “In the asset management sector, it is the 4th largest player in the country. Having turned profitable, the life insurance business has begun paying dividend,” he said.