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1
The largest invest
or in the
world is Japan’s G
minimum of $ 50 million for investment b. Venture Capital: overnment
over 75%. Pension Fund. It
Venture Capital funds invest in several manages
assets worth abou
Verticals: emerging companies or start-ups but t US$ 250
rarely take a majority stake in any single billion.
1. Mutual Funds: company.
Besides equity schemes, it also offers a RMF offers a range of debt funds that invest
in debt and money market instruments of
number of debt schemes and a gold ETF.
varying risk.
Reliance Mutual Fund
Among its other products are a Banking
Reliance Mutual Fund has Average Assets ETF linked to the CNX bank index, a gold
Under Management (AAuM) of ETF linked to the price of gold and fixed
Rs. 1,04,511 crores and an investor count of maturity plans.
over 73.30 Lakh folios. It is a part of the
Vedanta to buy majority
stake in Cairn India
Vedanta Resources plc, the first Indian The proposed deal has also not gone
manufacturing company to be listed on down too well with the state-run Oil and
Please send in your suggestions and
the London Stock Exchange and the Natural Gas Corporation (ONGC), comments to
world’s fifth largest miner, has agreed to which owns a 30% in the Rajasthan oil
teamconsult@iimahd.ernet.in
buy majority stake in Cairn India, the block of Cairn India. In a letter to Cairn
local arm of Britain's Cairn Energy. Energ y Plc Chief Executive Bill
Cairn Energy is selling up to 51% of it Gammell, ONGC Company Secretary Team Consult
62.37% stake in Cairn India to Vedanta, NK Sinha said that the Edinburgh-based Amber Maheshwari
in a deal that could see the Anil Agarwal firm required "consent of ONGC besides Agam Khurana
owned Vedanta spending up to $9.6 other gover nmental approvals to Bharati Agarwal
billion. consummate the proposed" sale.
Chaithanya Rao
Cairn Energy has said that it will seek Following the announcement of the Girish Gupta
government’s consent and endorsement proposed deal, Vedanta’s Credit Ratings Gurveen Bedi
for selling its stake in Cairn India. The were downgraded by Fitch and it was Hemant Chhabra
placed on Creditwatch negative by S&P.
Oil Ministry has appeared uncomfortable
These stem from the risk in the deal,
Kommu Nageen
at a non-oil firm gaining control of a given Vedanta’s lack of experience in the Mohit Garg
company whose main property is the oil sector. Murali Nair
Barmer district oilfields in Rajasthan. Neeraj Huddar
India currents imports 70% of its oil
However, the ministry is unlikely to stall
usage. With the entry of Vedanta, and its
Nilesh Kumar Gupta
the deal given that Cairn India’s contract Richa Gupta
aim of drilling for more oil in India, this
with the government for the properties in deficit may see a fall. The primary issue Simit Batra
question does not provide for a change in lies with Vedanta’s inexperience in this Utsav Kheria
control at the corporate level. Moreover, sector, and it would be interesting to see
Vamsi Krishna
100% FDI is allowed in Oil and Gas how Vedanta proceeds in case the deal is
allowed. Vivek Iyer
exploration, restricting government
action.
SsangYong would give M&M access to more than 1400 dealers in almost 100 countries. Of special interest, is access to markets in Russia,
Europe and Latin America. Access to the US market is also valuable as M&M has not been successful in its past efforts to create a viable
distribution in the US.
The two companies would also share their R&D and production platforms resulting in huge cost savings. This will also help the companies
launch new products with a reduced lead time. Mahindra & Mahindra launched the SUV ‘Xylo’ seven years after the launch of its flagship
‘Scorpio’ in 2002. SsangYong has not launched a new product in the last four years.
M&M also intends to bring in SsangYong’s existing products to the Indian market. Mahindra currently does not have any presence in the above
Rs. 10 Lakhs market segment in India and SsangYong’s SUVs like the Rexton, Kyron and Actyon are expected to fill up this void. The product
portfolios of the two companies complement each other extremely well.
Overall, the move seems to be a perfect fit in M&M’s target of becoming a big player within the niche of utility vehicles and having a global
presence in this market.