Reliance Capital Blog

Reliance Capital, India's Berkshire Hathaway

Tuesday, April 22, 2008

Ambani bullish on commodity trading

There is a robust growth potential for commodity trading business in India as high growth segments like bullion, power, realty and diamond are yet to be tapped to their full potential, a top ADAG official said.

"Commodity trading in the country is by far an unexplored territory as it is limited to large traders and insignificant retail participation. India can gain large economic traction if it capitalises on the commodity trading business," Reliance Capital's brokerage and financial products distribution arm Reliance Money's CEO Sudeep Bandyopadhyay said.

So far commodity trading is mostly limited to segments like metal and agri commodities and there also the business is limited to select group of traders. While retail investors participation is very less, institutional investors presence is not there at all, he added.

Anil Ambani group is believed to be planning to enter the commodity business for which it is talking to various potential partners for strategic technological and infrastructural support.

Sources said, the Anil Dhirubhai Ambani Group (ADAG) may announce the launch of a bullion exchange in a day or two in partnership with Bombay Stock Exchange (BSE) and Bombay Bullion Association (BBA) and a national commodity exchange as part of its plans to capitalise on the vast opportunities in this market.

When asked about commodity exchange business plans Bandyopadhyay said, "We are open to any opportunity." However, he did not give further details.

ADAG is present across diversified businesses such as telecom, power, financial services, energy, infrastructure and media. Besides, the group is already present in the commodity brokerage business through Reliance Money. According to experts, this market could be in for a major overhaul with some large corporate houses waiting to start their own bourses.

Another emerging conglomerate Indiabulls group, which is present in businesses like brokerage, financial services, real estate, retail and power has already tied up with state-run trading firm MMTC to start a commodity exchange, for which it is awaiting necessary approvals.

Bandyopadhyay believes, there is a huge growth potential in the Indian commodity market, which is already of the size of close to one trillion dollars and could gain further scale given a continuing bull run across the world in this segment for over five years now.

Monday, April 07, 2008

ADAG embarks on global expansion for Reliance Money

Seeking to complement its domestic target of doubling its presence to 20,000 outlets this year, Anil Ambani group's Reliance Money has drawn out an aggressive expansion plan for the overseas market to set shop in about half a dozen locations by the end the current fiscal.

"We will be setting up offices in six-seven strategic locations around the world in 2008-09," Reliance Money CEO Sudip Bandyopadhyay said.

The brokerage and financial products distribution firm, which is part of ADAG's Reliance Capital, has identified locations like Kuwait, Bahrain and Doha in the Middle East, while it is looking at Singapore and Hong Kong in South Asia, according to Bandyopadhyay.

The London office would come up in the next six months while the Middle East branches are expected to be functional during the first quarter.

The company is in the process of seeking regulatory approval for its Singapore office, while Hong Kong might come up in the later part of the year.

Currently, the company has a branch in the Dubai and is in the process of opening an outlet in Muscat.

The office in Oman's capital would come up during this month or early next month, Reliance Money CEO said.

"We have shortlisted three-four places for setting up the branch in Muscat," he said.

The company is eyeing a strong customer base of over one lakh in the Gulf region, which is home to about 20 million NRIs and resident Indians.

Last week, Reliance Money joined hands with Canada's Recognia, a leading provider of technical charts for stocks, that would allow its customers to know if previous patterns indicate a future rise or fall in share prices.

"Technical analysis, till date, is a privilege available to institutions and HNIs and the Indian retail investors have been deprived of these tools so far," Bandyopadhyay said.

The addition of Recognia's sophisticated automated technical analysis as an add-on feature on the platform will provide automated simplified analysis that will inform the customer about shift in trends of different stocks in the markets at one rupee per day, he said.

The value-added feature would provide additional revenue stream for the company and it expects about 10-20 per cent of its two million customers to use this facility.

Reliance Money recently crossed two million-customer mark within a year of launching its commercial operations on April 11 last year. The company says that it is the fastest two million customer acquisition in the industry.

"We have seen steady growth in the customer base despite the volatility in the market. In the last two months alone, we have added over 5,000-7,000 customers daily in our portfolio," Bandyopadhyay said.

Reliance Capital, the parent company of Reliance Money, has crossed a total customer base of 14 million as of March 31, which marks a three-fold jump in one year.

Reliance Money has an average daily turnover of Rs 2,000 crore, which represents over 4 per cent of total turnover at NSE and BSE, the two premier stock exchanges.

The company has a presence of over 10,000 retail outlets across 4500 talukas in the country, which it plans to double to 20,000 this year.

Tuesday, April 01, 2008

Reliance Money brings Canadian partner in broking biz

With plans to double presence to 20,000 outlets this year, Reliance Money on Tuesday joined hands with Canada's Recognia, a leading provider of technical charts for stocks, that would allow its customers to know if previous patterns indicate a future rise or fall in share prices.

"Technical analysis, till date, is a privilege available to institutions and HNIs and the Indian retail investors have been deprived of these tools so far," Reliance Money CEO Sudip Bandyopadhyay told reporters here.

The addition of Recognia's sophisticated automated technical analysis as an add-on feature on the platform will provide automated simplified analysis that will inform the customer about shift in trends of different stocks in the markets at one rupee per day, he said.

The value-added feature would provide additional revenue stream for the company and it expects about 10-20 per cent of its two million customers to use this facility.

Talking about the expansion plan, Bandyopadhyay said by the end of March 2009, the company would add another 10,000 outlets, taking the total number of outlets to 20,000. By doubling the outlets, the company would expand its reach to 5,161 tehsils of the country, he added.

Elaborating on the tool, he said Recoqnia's technical analysis will allow Reliance Money users to identify customers about shift in price movements and emerging trends that will help them look up bullish and bearish notifications for any company, thereby providing them an insight into the possible direction for the scrip price.

The research is updated throughout every trading day - providing independent and objective notification of shifts in trends and changes in supply and demand that are, otherwise, not easily visible, Bandyopadhyay said.

When certain movements of the stock prices occur, Recognia distributes notices that help recipients identify profitable trades and make timely transactions, he added.

The technical services are available for a free introductory 7-day trail period to the existing users. Thereafter, this service is available to users at a nominal subscription of Rs 99 for 3 months and for one year subscription, the fee would be Rs 299.