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Hinduja IndusInd Secures 60% of Invesco India

April 10, 2024 | by indiatoday360.com

The Hinduja Group’s foray into asset management through its subsidiary IndusInd International Holdings (IIHL) marks a significant consolidation move in the Indian financial sector. IIHL’s acquisition of a controlling 60% stake in Invesco Asset Management India (IAMI) positions the conglomerate as a major player in this rapidly growing market.

Synergy for Success

This strategic alliance brings together the strengths of both companies. IIHL, the promoter entity of IndusInd Bank, boasts a well-established domestic distribution network exceeding 11,000 touchpoints and a customer base of 45 million. Invesco, a global investment management leader, contributes its extensive experience and a robust portfolio of global investment products and processes. This complementary expertise is expected to create a powerful force in the Indian asset management landscape.

Mutual Benefits

While IAMI will become a majority-owned subsidiary of IIHL, Invesco will retain a 40% stake in the joint venture. This strategic decision allows Invesco to solidify its presence in the high-potential Indian market while leveraging IIHL’s extensive reach to tap into a wider investor base. Saurabh Nanavati, the current CEO of Invesco Asset Management India, will continue to lead the new entity, ensuring continuity and stability during this transition.

A Well-Timed Move

The acquisition underscores the growing importance of asset management in India. As disposable incomes rise and financial literacy improves, a growing number of Indians are seeking investment avenues beyond traditional options. This trend is expected to propel the Indian asset management industry forward in the coming years. The Hinduja Group’s timely move positions the joint venture to capitalize on this growth by offering a wider range of investment products and superior customer service to Indian investors.

Industry Experts Weigh In

Financial analysts see the deal as a positive development for both companies. “This strategic alliance brings together a strong domestic player with a global investment leader,” said Anand Rathi, a renowned financial analyst. “The combined entity will be well-positioned to cater to the evolving needs of Indian investors and capture a significant share of the growing asset management market.”

The Hinduja Group’s acquisition of Invesco India is a landmark development with the potential to reshape the Indian asset management landscape. By combining IIHL’s distribution strength with Invesco’s global expertise, the joint venture is poised for a promising future, offering a wider array of investment options to a growing pool of Indian investors.

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