Alpic Finance Lines Up Slew Of Subsidairies

In keeping with the trend in the financial services sector, Alpic Finance Ltd (AFL) has drawn up a blueprint for becoming a universal finance house.

AFL has implemented a plan to set up a slew of subsidiaries offering a gamut of financial services to the retail and corporate sector.

Poonam Kumar, group vice chairman and executive director, AFL said the group which always had a presence in the retail sector is increasing its focus on this area by also extending lease and hire purchase activities to this sector.

Explaining the groups restructuring and diversification plans, Kumar said, AFL has believed in innovation and will continue to look for different niche areas of operations. While the industry is going through a difficult phase, this philosophy has seen AFL sail through.

 

After the restructuring, AFL will be the groups flagship company and will extend lease and hire purchase, auto finance, and money changing services.

Within a month, AFL will float an asset management company in a joint venture with an overseas player. In the next financial year, it will hive off the investment banking division into a separate subsidiary, set up a consultancy wing, a training wing, and merge its international services division with its investment banking wing or consultancy wing.

Kumar said the services of the consultancy unit and the training centre will extend services not only to the group but outside the group as well.

The consultancy wing will look after the research and other service requirements of the group. It will also conduct research for other industries and corporates.

The training centre will conduct training programmes not only for AFL but also for the banking sector in general, said Kumar, who has persistently stressed on human resources development at AFL.

Having received approval for a local area bank from the RBI, AFL is in the process of incorporating it with the Registrar of Companies.

In the longer term, the company plans a foray into the insurance sector for which it has entered into a joint venture with Allianz AG an international insurance major. It is scouting for a joint venture partner for a specialised auto finance unit, and has applied for a banking license with the Reserve Bank of India for setting up a bank in India and other SAARC countries.

Presently, the companys subsidiaries include Alpic BBK Finance Ltd, Alpic Securities Limited, Alpic Industrial Risk Management Services Ltd, and an NBFC in Nepal.

As per the companys last audited accounts, AFL reported net profits of Rs 24.84 crore with an asset base of Rs 993 crore, earning per share of Rs 21, and a book value of Rs 162 as on the year ended June 30, 1997.