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INDUSTRY
OUTLOOK |
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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 |
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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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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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