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| RIL may market financial products of Anil, others |
| Press Trust Of India / New Delhi Jul 05, 2010, 00:10 IST |
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Mukesh Ambani is set to enter the financial sector, hitherto considered a domain of Anil Ambani, and chances are that his group would showcase the products of the younger brother, as also other players.
The Mukesh Ambani group is contemplating a foray into financial services distribution, using its vast network of retail chain to sell products like insurance, mutual funds and forex of different players from India and abroad.
Mukesh Ambani-led Reliance Industries’ spokespersons did not respond to e-mailed queries, including whether the group was in talks with domestic and foreign financial sector players like D E Shaw, JM Financial and Warren Buffett-led Berkshire Hathaway.
Buffett, the legendary American investor and one of the world’s richest persons is also said to be exploring an entry into Indian financial services distribution and is slated to visit India early next year.
Reliance Industries has already set up a few subsidiaries for financial services business, namely Reliance Retail Finance Ltd, Reliance Retail Insurance Broking Ltd, Reliance Financial Distribution and Advisory Services Ltd and Reliance Retail Travel and Forex Services Ltd.
Together, these entities had assets worth close to Rs 125 crore as on March 31.
The Anil Ambani group is already present in a host of financial services businesses, including insurance, mutual funds, brokerage and non-banking financial services. While it is also present in the distribution business through Reliance Money, this entity is in the process of shifting the focus more towards services like investment banking and brokerage.
The issue of cooperation in this sector is believed to have been discussed between the two brothers during their stay at Kruger National Park in South Africa last month, with Anil looking at leveraging from the network of Reliance Retail, which has already over 1,000 stores and there are plans for expansion.
Industry sources said it was a part of this commitment that Mukesh and Anil Ambani would not compete directly, at least in the initial phase of elder brother’s entry, in the financial business and would rather look at complementing their businesses.
Even before their separation, Anil was considered the expert on financial matters and Mukesh has a reputation of rolling out businesses of unheard — of size. While Mukesh is credited with creating the world’s largest refinery, Anil raised Rs 11,500 crore through the Reliance Power IPO — the biggest in India till date.
The talks for the Mukesh Ambani group's entry into financial services business is being seen as one of the follow-ups to a truce deal on May 23 that also scrapped a five-year non-compete agreement between the brothers.
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