The Murugappa group has announced a re-branding of its financial services business, aiming to strengthen its position in the segment with a fresh set of business plans and a new logo.
The group's financial entities -- Cholamandalam Investment and Finance Company Ltd, Cholamandalam Securities Ltd, Cholamandalam Distribution Services Ltd, Cholamandalam MS General Insurance company Ltd and Colamandalam MS Risk Services Ltd -- would sport the new logo under the name Chola and Chola MS.
“This is part of a repositioning of Chola and Chola MS businesses from the Cholamandalam. We have a branch network of over 220 for the investment and finance company and we plan to increase the numbers significantly in coming years,” said A Vellayan, chairman, Murugappa group. The rebranding of business would involve around Rs 3 crore a year, he added.
The company is weighing its options on launching new products in sectors like asset-backed agri financing, certain projects of infrastructure where sub-contracts are involved and in the business of gold in next fiscal, said Vellayan Subbiah, managing director, Cholamandalam Investment and Finance Company Ltd. It is assessing each of these segments and will come up with a plan in the next three to four months.
An additional 112 banches would be added to the Chola in a year's time. Plans are to increase the number of Chola and Chola MS branches by 25 to 30 per cent in the next one year, he said.
Speaking on its exit from personal finance business, which it had entered in collaboration with the Singapore-based DBS Bank, the chairman said that it was a mistake to enter the segment. The company withdrew from personal finance business by the end of last fiscal.
Cholamandalama MS General Insurance Company Ltd is a joint venture between Murugappa group and Mitsui Sumitomo Insurance group of Japan.
