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| Aditya Birla Nuvo mulls consolidation of fin services biz |
| Press Trust of India / Mumbai Oct 30, 2009, 21:37 IST |
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Diversified conglomerate Aditya Birla Nuvo is exploring the possibility of consolidating its financial services businesses.
The company is in discussions with the Reserve Bank, market regulator Sebi, insurance watchdog IRDA and the Finance Ministry to work out the feasibility of the plan.
"We are exploring the possibility of bringing together all our financial services businesses under one umbrella to leverage operational efficiency. It is at an initial stage but the process of amalgamation has started," Aditya Birla Nuvo Managing Director Rakesh Jain told reporters here.
He said the proposal was subject to approval from regulatory authorities and expected the process to be completed within a year.
The company may also eventually consider listing its insurance business, but needs approval from IRDA, which requires a company to be in operation for at least 10 years before it hits the capital market.
"We are in talks with most of the regulators... Finance Ministry, RBI, Sebi and IRDA. Something should happen in the next 12-months," the company CFO Sushil Agarwal said.
The financial services business of the company comprising insurance, mutual funds, broking and private equity accounts for 32 per cent of the total company's revenue.
Besides financial services, the Group is active in textiles and apparel, carbon black, fertilisers, insulators and mobile telephony.
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