Comments
The Chennai-based Shriram group plans to set up a venture capital fund and an angel fund. It is also considering a proposal to get into the investment banking business.
Arun Duggal, Chairman, Shriram Capital Ltd (the holding company for the financial services and insurance entities of the Shriram group), said the idea is to encourage emerging entrepreneurs at an early stage.
“We are particularly interested in angel funding, as we can make a difference there,” he said.
Wealth management
He added that, usually, behind every (angel) investment, there is a group of individuals. At times, this makes it difficult for the entrepreneur to handle dealings with the group.
“Whereas, in our case, we will be the only investor as the usual ticket size of Rs 50-60 lakh is pretty much manageable.”
The group has interests in chit funds, commercial vehicle lending, asset financing, insurance and various other businesses in the financial services sector.
Though it is a financial partner in TVS Shriram Growth Fund (a private equity fund in partnership with TVS Capital Funds), it does not manage the fund.
Also on the drawing board are wealth management products for top-end customers.
However, Duggal said it is still in the concept stage and hence he could not give more details.
The group has obtained the necessary approvals from market regulator SEBI for its asset management arm, he said.
On the proposed entry into the banking business, he said the company is reasonably prepared.
“More than 80 per cent of the spade work has been completed. However, it depends on the RBI’s new guidelines for banking licences.”
At present, the group has over six million customers — the majority of them truck-owners and small businesses.
“We intend to serve those people, to whom we can offer better banking services,” he said.
Transaction costs
Shriram is confident of bringing down the transaction cost to a great extent.
“Based on the frugal philosophy of the group, our delivery cost can be extremely low,” said Duggal.
ravikumar.ramanujam@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.