Prudential Financial, the second-largest life insurer in the US, today announced plans to enter the investment-services business in India next year. Prudential is the latest amongst a series of new players entering the Indian mutual fund industry, which manages assets worth over Rs 4 trillion. The announcement was made by Stephen Pelletier, chairman and chief executive of the company's international investments.Prudential will announce a partnership with an Indian company later this year, Pelletier told reporters today in Mexico City following a news conference about its Mexican unit. He declined to identify the partner."We're very interested in getting established in India...It's the largest middle-class in the world,'' Pelletier said.The investment venture follows Newark, New Jersey-based Prudential's decision in March to form a life insurance company in India with realtor DLF, entering a market that raises $24 billion a year in premiums. India will add to Prudential's businesses outside the US, including in Japan and South Korea, which contributed 38% of pre-tax profit in 2006.Prudential, which had $630 billion in assets under management as of the first quarter, aims to sell investment products to the richest 10% to 15% of the population in the countries where it operates, Pelletier said.Recently, UBS bought Stanchart AMC's Indian business and Japan's Nikko tied up with Ambit for mutual fund foray in India. Other recent entrants include JP Morgan, Dawnay Day and AIG. Korea's Mirae Asset is waiting for regulatory approval for its India entry while UK-based Schroders has announced plans to enter the Indian asset management business.
