Cholamandalam Finance & Investment Company, part of the Rs 4,000 crore Murugappa group, is looking for a partner for its financial services initiatives.
Cholamandalam Investment is also the sponsor of Cholamandalam AMC Ltd. The asset management company got separated from its erstwhile partner Cazenov Holdings to become an independent company in April 2001.
According to M Anandan, managing director of Cholamandalam Investment, the company is searching for the right partner "who can give added value to the company's range of financial services and provide the right technological inputs".
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He said that a number of Indian entities, including corporates, had approached them.
The company is looking for a partner which has expertise in a broad spectrum of financial services since the Murugappa group is also planning a non-life insurance foray. The other businesses of the financial services group include securities broking, distribution of financial products, and risk management.
The US-based Alliance and the UK-based Prudential are some of the overseas entities which have expertise in a wide range of financial services.
Anandan said that a partner would be found only if it met with the criteria of enhancing the company's existing knowledge and technological base.
Cholamandalam AMC, which has shifted base to Mumbai since September 2000, is also looking for acquisitions to increase its size. While it has already appraised funds on the block -- Dundee Mutual Fund and Pioneer ITI among others -- Anandan said that the price have to be right while size of the fund would also matter.
"It is of no use taking up a portfolio of a few hundred crores," Anandan said.
He said that they were in no hurry to sign up with a partner and they would take their time in finding the right entity.
The AMC, which has around Rs 900 crore worth assets under management, plans to increase it to around Rs 3,000 crore. At the end of the current year, the company also expects to have Rs 1,000 crore assets.
The mutual fund is also augmenting its equity schemes while repositioning its Freedom Income scheme as a shorter term maturity scheme of 12-18 months.