RIL to enter financial services business

Reliance Industries (RIL) today said it will set up a joint venture with DE Shaw group to establish financial services business in India.

"Reliance is delighted to partner with DE Shaw group in the financial services domain. DE Shaw group is a natural partner for Reliance. Together, we look forward to participating in the growing Indian financial services sector," RIL Chairman and Managing Director Mukesh Ambani said in a company statement.

DE Shaw group is a global investment and technology development firm. The company has its presence in India since 1996. Its investment activities in the country are spread across various sectors and the firm has over 700 employees in its Hyderabad, Gurgaon (Delhi), and Mumbai offices.

The christening of the joint venture, its shareholding pattern and the areas of financial services it intends to enter are being finalised, a company source said.

"This joint venture will incorporate DE Shaw group's investment and technology expertise with Reliance’s operational knowledge and extensive presence across India to offer a comprehensive array of financial services to the Indian marketplace," RIL said in a statement.

Lou Salkind, a member of DE Shaw group's Executive Committee, said: "We believe this joint venture allows us to apply to the Indian markets our historical success in investment management and market-making, and that strengthening our presence in India and deepening our relationship with Reliance benefits our business globally."

The unnamed joint venture would draw upon the core competencies of both the firms to develop a platform that can serve the growing needs of Indian companies and individuals, said Anil Chawla, managing director and head of DE Shaw group's private equity activities in India.