Kotak buys out Goldman from 2 firms for Rs 330cr

 The group had taken a significant step towards further integrating financial product offerings for customers. "We at Kotak have always aspired to create an Indian financial institution with global class and capabilities. This is a reinforcement of that vision," he said. "At this point, we want to chart our own destiny, but financial services being what it is, we would continue to look at opportunities," he said in response to a question on whether he might consider another foreign partner.

Kotak Mahindra Capital, which topped both the initial public offerings (IPO) and M&A league tables for 2005, has presence in the US, the UK, Mauritius and West Asia, while Kotak Securities has more than 600 outlets covering 203 cities and towns across India. Kotak said the percentage of Kotak's overseas operations in the total turnover was in single digit now and the plan was to increase it to 25-30 per cent in the next five years.

 The Kotak group has a net worth of around Rs 2,000 crore, employs around 6,000 people in its various businesses and has a distribution network of 851 branches, franchisees, representative offices and satellite offices across 216 cities and towns in India and offices in New York, London, Dubai and Mauritius.

 Amarchand & Mangaldas & Suresh A. Shroff & Co acted as legal advisors for Kotak Mahindra on the transaction.

Goldman to invest $1 billion in India

 Goldman Sachs will start its own investment banking and securities business in India shortly. It will soon apply for licences to trade securities and provide investment-banking services in India.

The firm will invest $1 billion in the next three years in its Indian operations, Brooks Entwistle, chief executive of Goldman Sachs (India) LLC, said. "The Indian market represents tremendous growth and opportunity. Now, more than ever, there is a compelling case for us to build an onshore presence which is fully integrated with our global businesses," he said.

The firm will look at extensive distribution facilities all over the country. "For us, talent will not be a shortage as top Goldman Sachs executives from all over the world would lend their expertise. Besides, there is no shortage of world-class talent in India," Entwistle said.

Goldman Sachs said its India strategy would include principal investing and asset management. The firm said in a statement that Kotak would support its licence applications. Goldman Sachs needs the consent to set up a competing business, according to government regulations. The joint venture with Kotak Mahindra was Goldman Sachs' first, marking a break with 126 years of tradition at the time it was signed in 1995.

India has become the third-biggest market for investment banks in non-Japan Asia, behind China and South Korea, with fees last year more than doubling to $381 million, luring most of the world's big investment banks.