RK Global eyes entry into infra, insurance space

Financial services provider RK Global today said it plans to diversify its business by foraying into the infrastructure and insurance space in the next two years.

"We are planning to move in to the infrastructure business by 2013... We are also targeting to enter in insurance business by the next year," RK Global Director Sushil Kumar Dhancholia told PTI.

The group has formed a new entity, RK Global Infrastructure, which will aggressively focus on roads and highways, housing and building work and other such infrastructure projects.

With India expected to spend around $1 trillion on infrastructure during the 12th Five-Year Plan, there are tremendous opportunities for private players to grow in the sector.

"RK Global intends to tap this upside potential. On the whole, infrastructure is a profitable business and has no longer remained the sole domain of the public sector," Dhancholia added.

In the insurance sector, RK Global Insurance Broking Ltd has already sought clearance from insurance regulator Irda and is hopeful of getting the approval by the next year, he said.

The group is present in businesses like institutional equity broking, retail broking, investor advisory services and also in the NBFC sector.

Dhancholia said he is expanding RK Global's financial services operations by entering into the merchant banking and wealth management business by fiscal 2012-13.

The group, which registered a revenue of Rs 3.37 lakh crore in FY'10-11, is eyeing a revenue of Rs 4 lakh crore in the current fiscal, Group CFO Manjeet Pugalia said.

In addition, Dhancholia said the company is looking to expand its operations in domestic as well as overseas markets. The group, which has offices in five major states, plans to establish offices in all the states.

R K Global has its franchise office in Singapore and it plans to set up more offices in overseas markets such as Dubai, Australia, New Zealand in the near future. These countries are making a significant contribution to the stock markets in terms of their trading turnover.