Cholamandalam AMC eyes Rs 2500cr business

Cholamandalam Asset Management Company Ltd (CAMC), a wholly-owned subsidiary of Cholamandalam Investment and Finance Company Ltd, expects to set-up a 20-member franchisee network in the first half of the current financial year. The AMC is targetting to double the assets under its management to about Rs 2,500 crore during the year.

Addressing mediapersons Shashi Krishnan, chief executive officer, CAMC, said, "There are four products in the pipeline to be launched, two in the equity segment and two in the debt portfolio. One equity product would be sector specific."

Krishnan said the company planned to set-up franchisee network in 20 locations across the country which will be certified by the Association of Mutual Funds in India (AMFI). To set-up our own branches it would require larger investment.

He pointed out that about 40 per cent of the business generated by asset management companies is contributed by Mumbai while Delhi contributes about 20 per cent followed by Bangalore, Chennai, Hyderabad, Ahmedabad and Kolkata.

Krishnan said, "Tier II cities provide immense opportunities, as there are many people who have surplus income looking at alternative investment opportunities other than conventional investment routes which offer low interest rates. Our franchisee will create an awareness and knowledge about various investment options to enhance their investment portfolio."