Reuters

New Delhi: Retail broker Reliance Money on 1 July launched its wealth management services for the Indian millionaires and expects 15% of its revenue coming from the new business in next three years.

Reliance Money, a subsidiary of Anil Dhirubhai Ambani Group’s Reliance Capital Ltd posted a revenue of Rs2.4 billion in the year ended March 2008.

“India has 1.3 million high net worth individuals and they are expected to rise to 2 million by 2012. So there is a huge scope,” Sudip Bandyopadhyay, chief executive of Reliance Money, told a news conference.

Indian brokerages are competing with banks to offer wealth management services to the nation’s burgeoning millionaires in a growing economy as a volatile stock market makes revenues from broking operations unstable.

Reliance Money would compete with local firms like Motilal Oswal Financial Services, Kotak Securities, Edelweiss Capital and global firms like Credit Suisse, HSBC among others.

“Reliance offerings will include equity-linked portfolio management, tax planning, art advisory, real estate. The firm will target individuals who have investable surplus of more than Rs2.5 million,” Bandyopadhyay said.