Business Standard

Geojit plans to enter South East Asia

Image

Vishal Dutta Mumbai/ Ahmedabad
Kerala-based Geojit Financial Services Ltd (GFSL), a leading retail broking house, plans to foray into the South East Asian countries by the end of the year 2009.
 
On a visit to Ahmedabad, the managing director of GSFL, C J George, talked with Business Standard regarding the company's plans to strengthen its base in India, its ongoing expansion in Middle East and its future plans for the East.
 
He said, "We plan to set up our operations in South East Asian region by end of three years from now". The company plans to set up operations in Singapore, Hong Kong and Malaysia that has significant presence of non resident Indians (NRI) and people of Indian origin.
 
The company is using the same strategy for its Middle-East expansion by setting up its operations in region having strong NRI presence.
 
Talking about the company strategy in Middle-East, George said that the Middle East has almost 10 per cent of the total 22 million resident Indian population globally.
 
According to an estimate, the total NRI population in West Asia is between 2.5 million to 3 million.
 
George said that the company intends to make its next move to South East Asian countries only once the company's current ongoing expansion in West Asia is completed. The company expects to complete its expansion in Middle East in three years time.
 
Recently, Geojit has raised Rs 207 crore by issuing shares to BNP Paribas by diluting 34 per cent.
 
These funds are utilised by the company to carry out its expansion in West Asian countries and strengthening of Geojit Financial's operations as well as expanding its branch network.
 
The company is setting up its operation in West Asian countries through joint ventures in Oman, UAE and Saudi Arabia. The company plans to set up 15 centers in Saudi Arabia.
 
The company also plans to make its entry into Kuwait, Bahrain and Qatar.
 
In Saudi Arabia, it entered into a joint venture with Al Johar group creating Aloula Geojit Brokerage Company Ltd. Each of the partners held 30 per cent stake in the JV, while the rest is held by high networth individuals and institutions in West Asia.
 
The company has also formed a JV for its Dubai operations creating a company under the banner of Barjeel Geojit Securities that will be trading in securities of UAE-based stock exchanges.
 
While in India the company will double its branches in next three year.
 
Currently, it has approximately, 400 branches and a client base of 4.25 lakh customers.
 
The major focus will be in the Northern part of the country. The company has one branch each in MP, Bihar, WB, Haryana and Rajasthan.
 
While it has seven and eight branches in Delhi and UP respectively.
 
The company turnover for the FY 2005-06 stood at Rs 101 crore with 10 per cent turnover derived from its commodity trading operation. While for the first half in the FY 2006-07 the company's turnover was Rs 61 crore with 16 per cent income derived from commodity segment.

 
 

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Dec 19 2006 | 12:00 AM IST

Explore News