ADAG to float new firm for financial services biz

MUMBAI: After expanding in the domestic market aggressively, the Anil Dhirubhai Ambani Group (ADAG) is now turning inward to further its financial services business. The group is close to launching a wholly-owned subsidiary, Reliance Capital Services (RCS), which would exclusively target the existing customers, shareholders and employees of ADAG companies to sell financial products. RCS would sell insurance and consumer finance products to the target customers that add up to about 17.5 crore, officials from the group said. Speaking to TOI, Sam Ghosh, CEO, Reliance Capital, said that the company is in the process of obtaining permission from a large number customers of ADAG group companies with whom these companies have confidentiality clause because of the nature of the services they offer. Once customer permissions are in place, RSC would approach them with products more suitable for their needs. And ADAG group's customers, shareholders and employees from whom permissions are not required would be approached once the firm becomes operational, Ghosh said. RCS will be a 100% subsidiary under Reliance Capital, ADAG's main arm for the financial services business. ‘‘We have already recruited about 200-300 people. We are planning to launch our operations in July,'' Ghosh said. ADAG is probably the first business group in the country that is tapping its in-house customer, shareholders and employees to expand its businesses through a specialized and exclusive set up. While RCS would sell life and general insurance products, along with consumer finance products like home loan, car loan and personal loans, to this captive customer group, it would not distribute mutual fund and broking services. Ghosh said funds will continue to be sold through the distributor network, while group company Reliance Money is already into broking services. For the ADAG, RCS would be the second company to look at business opportunities within the group. Earlier this year, the group had announced setting up of Reliance HR Services, a human resources company that has plans to recruit about 50 lakh people for the group in the next four years.
Coutesy : TOI
Mohammad Danish Eqbal