Mumbai: Anil Ambani, the billionaire chairman of Reliance-Anil Dhirubhai Ambani Group (R-Adag), has formed a new company to sell financial products to the more than 170 million customers his group has across the power, telecom, entertainment and financial services businesses.
Reliance Capital Services Ltd, as the new company is called, will focus on marketing life and non-life insurance and other consumer finance products to group customers, according to an R-Adag official.
It’s the first move by R-Adag, whose stable includes the non-banking financial services firm Reliance Capital Ltd, to tap its internal customer base for selling such products.
The group recently set up Reliance HR Services Ltd, a human resources firm that’s targeting the recruitment of half-a-million people for R-Adag in the next four years.
“We already have an existing relationship with over 170 million customers through our various group companies. We intend to leverage this relationship and offer specialized products to these set of customers through this new company, wherever possible,” said Sam Ghosh, group chief executive of Reliance Capital.
Reliance Capital also has two insurance firms under its fold—Reliance General Insurance Co. Ltd and Reliance Life Insurance Co. Ltd. Another group arm, Reliance Capital Asset Management Ltd, had Rs98,431 crore worth of assets under management as on 31 May, about 16% of the total at India’s mutual fund industry.
Its broking arm, Reliance Money, also distributes financial products and Reliance Consumer Finance, another division, has advanced more than Rs7,000 crore as home loans, car loans and personal loans.
The new firm would initially start with a staff of 200 that will be scaled up aggressively. Reliance Capital Services will have a pan-India footprint and look at servicing internal customers of the group across regions.
R-Adag has about 50 million customers in the telecom business, controlled by Reliance Communications Ltd and 20 million customers across financial services. Reliance Infrastructure Ltd has more than 30 million customers, while Reliance Entertainment Ltd boasts of 70 million customers.
“We plan to complement the marketing and distribution efforts of individual firms that are focused on selling their individual products. This initiative adds to their already aggressive growth momentum,” Ghosh said.
Reliance Capital stock closed at Rs1,086.15 on the Bombay Stock Exchange on Thursday, down 5.09%, while the exchange’s benchmark index, the Sensex, fell 2.17% to close at 15,087.99.