Reliance Money has entered into a tie-up with Hong Kong-based Goldride Securities for distributing financial products and services in that country. The tie-up will not result in the formation of a joint venture company but the two partners will share the earnings based on certain undisclosed terms and conditions.
“Hong Kong is the largest market in South East Asia. It offers great business opportunity and fewer business restrictions. We plan to service the entire region through our Hong Kong office,” said Reliance Money director and CEO Sudip Bandyopadhyay, adding that the partnership is important because “this geography is new to us.”
“It will be a two-way traffic,” said Goldride Securities MD Anthony Espina. “We will have access to Reliance’s corporate clients and vice-versa,” he says. He said that the partnership will not be limited to broking. Big money lies in mergers and acquisitions.
We would like to take some deals to Reliance Money as well. India offers good M&A opportunity,” he said. Reliance Money may shortly launch its investment banking and wealth management business, Mr Bandyopadhyay confirmed. Meanwhile, the company plans to expand its operation in over 15 countries spread across Europe (London), North Africa, the Middle East and South East Asia by March 2009. It has already launched operation in the UAE, Oman and Hong Kong.
Reliance Money will not take the acquisition route to grow its international business. “We are only looking for tie-ups with local brokerages and not acquisitions,” said Mr Bandyopadhyay. The company, with a customer base of 2.2 million, claims that it has already become India’s largest broking and distribution firm since its launch a year ago.
