| INDUSTRY
OUTLOOK |
| Indian
financial sector presents a huge retail
finance opportunity. Existing low penetration
levels, increasing affordability of credit
and rising income levels have led to a growing
demand for retail financial products. India
has a large pool of retail investor base
spread throughout the Country with a huge
pool of untapped surplus funds. The confidence
of small investors has increased with the
growing levels of education and financial
awareness, and the tightening of regulatory
systems. Exposure to global practices has
made the Indian customer more discerning
and demanding. As a result of falling interest
rates, bank deposits, other traditional
investment opportunities are losing their
attraction. Thus, Indian investors are getting
attracted towards alternate investments
such as the equity markets and are looking
for newer financial products. Huge opportunities
offered in the retail financial services
sector are coupled with several challenges.
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The
sector requires extremely effective distribution
systems that are capable of offering flexibility
and convenience to the customer, while maintaining
cost-efficiency. There has been a clear
shift towards those entities that are able
to offer products and services in the most
innovative and cost efficient manner. The
financial sector will need to adopt a customer-centric
business focus. It will also have to create
value for its shareholders as well as its
customers, competing for the capital necessary
to fund growth as well as for customer market
share. The financial services industry is
undergoing a consolidation with the large
number of small players turning into few
large players. In future, it is expected
that the market share will be captured by
the players who can offer a complete bouquet
of financial products and services. |
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The
positive developments and outlook on the
Indian financial services industry, particularly
the Indian Capital Markets, provide AGSL
an opportunity to grow at very high rates
and capture the market share by increasing
its scope of services. |
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Promoting
new business activities |
AGSL offers the diversified financial
services to its clients including Stock
Broking, Commodity Broking, Depository
Services, Project Consultancy, Market
Research, Loan Syndication, Turnkey Projects
and overall Corporate Advisory Services.
The Company has transformed into a financial
powerhouse and offers a wider range of
diversified financial services to its
clients. To meet this objective, the Company
aims to reach closer to its clients and
has for that purpose conceived a project
of setting up 500 retail branch/ franchisee
outlets of which 200 such branches are
planned to be set up in 1st phase with
capital outlay of Rs. 25 Crores.
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To
devolve as a one stop shop for all
financial services, we have identified
services that are required to be included
in our portfolio. |
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Portfolio
Management Services (PMS) to provide
discretionary services to its clients.
This will increase our assets under
management and will enable us to provide
higher returns to clients on their
portfolios. To provide these services
the Company is in the process of making
an application to SEBI for obtaining
the PMS License. |
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Merchant Banking
License – By obtaining a Merchant
Banking Licence, the company will
be able to provide investment banking
services to Corporates such as advise
on mergers and acquisitions (domestic
and cross-border), divestitures, Capital
raising through IPOs, rights issues,
share buybacks, open offers/delistings,
private placements and syndication
of debt and equity. This will enable
us to leverage our existing relationship
with Corporates and to strengthen
our relationship further. |
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Increasing
our distribution of Mutual Funds and
adding distribution of Insurance Products-
Addition of insurance products will
add an additional source of revenue
for the Company and enable us to offer
all financial products available in
the market to our clients. |
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Offering
a wide range of financial services and products
to our clients at their doorsteps, will
benefit our clients by allowing them to
leverage their relationship with us and
get products suiting their varied needs.
At the same time, this will enable the Company
to increase its revenues per client by selling
different products to the same client. Further,
the Company will gradually aim at to increasing
the number of client relationships and then
leverage those client relationships into
offering in a whole suite of financial products. |
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After
the proposed expansion plans gets implemented
successfully, the Company plans to foray
into limited purpose banking activities,
viz. lending and borrowing of stocks, funds
for security transaction, loans against
shares and personal loans, launching of
Asset Management Company managing Mutual
Funds subject to the then prevailing rules
and regulations. |
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