 "We haven't decided whether to apply for a banking licence: Ajay Piramal")
Ajay Piramal, chairman of Piramal Enterprises, who sold his company's local drug business to Abbott for Rs 17,500 crore in 2010, has since invested in telecom and non-banking financial companies. He speaks to Reghu Balakrishnan on acquiring a 10 per cent stake in Shriram Transport. Edited excerpts:
Apart from an investment, what is the rationale behind holding 10 per cent stake in Shriram Transport?
We can't compare our investments in Vodafone and Shriram Transport. Vodafone can be seen as a mere investment for a short-term period of two-three years. We plan to sell Vodafone's stake by next year. But in Shriram Transport, we will hold the stake for a long term. As a player in NBFC space, we have already a presence in the wholesale space but the latest deal will help improve our presence in retail business, too. However, we will not have any presence on the board of Shriram Transport.
Do you have any plans to increase the stake?
Similar to Vodafone and Shriram Transport buys, will there be further big-ticket investments in the near future?
At present, we have no plans to do an open market transactions or similar big deals in unlisted space.
What is the target size of loan book by 2015?
We have a loan book of Rs 1,000 crore. We are in different areas of NBFC, private equity and structured investments, etc. We expect the book will grow fast. At this moment, I am unable to give a projection of the book.
What are your plans for the banking licence? Are you joining hands with any group?
We have no plans to join hands with any groups and we are yet to decide whether to apply or not.
Apart from an investment, what is the rationale behind holding 10 per cent stake in Shriram Transport?
We can't compare our investments in Vodafone and Shriram Transport. Vodafone can be seen as a mere investment for a short-term period of two-three years. We plan to sell Vodafone's stake by next year. But in Shriram Transport, we will hold the stake for a long term. As a player in NBFC space, we have already a presence in the wholesale space but the latest deal will help improve our presence in retail business, too. However, we will not have any presence on the board of Shriram Transport.
Do you have any plans to increase the stake?
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We don't have an immediate plan to increase stake in Shriram Transport at present.
Similar to Vodafone and Shriram Transport buys, will there be further big-ticket investments in the near future?
At present, we have no plans to do an open market transactions or similar big deals in unlisted space.
What is the target size of loan book by 2015?
We have a loan book of Rs 1,000 crore. We are in different areas of NBFC, private equity and structured investments, etc. We expect the book will grow fast. At this moment, I am unable to give a projection of the book.
What are your plans for the banking licence? Are you joining hands with any group?
We have no plans to join hands with any groups and we are yet to decide whether to apply or not.