Future Capital and Centrum Group rearrange JVs for forex money changing & retail wealth management

Future Capital Holding & Centrum Capital Ltd have decided on the rearrangement of share holding on their two existing joint ventures, FCH Centrum Wealth Managers Ltd & FCH Centrum Direct Ltd

Future Capital Holding (FCH) & Centrum Capital Ltd (CCL) have decided on the rearrangement of share holding on their two existing joint ventures, FCH Centrum Wealth Managers Ltd (FCH CWML) & FCH Centrum Direct Ltd (FCH CDL).

As per the new arrangement, Centrum Capital Ltd will buy 50% stake currently held by FCH in the entity FCH Centrum Direct Ltd for a consideration of Rs100 crore. In 2008, FCH had invested Rs75 crore for 50% stake in this joint venture. Post this transaction, Centrum Capital Ltd will hold 100% stake of FCH Centrum Direct Ltd. Centrum Direct Ltd is primarily into the business of forex money changing and travel solutions.

As part of the same arrangement, FCH will buy out 50% stake of FCH Centrum Wealth Managers Ltd from CCL at a consideration of Rs1 crore. In 2008, FCH had invested 50% stake in this joint venture with CCL for Rs25 crore. Post this transaction, FCH will hold 100% of this entity. FCH Centrum Wealth Managers Ltd is primarily in the business of retail wealth management.  

The boards of FCH & CCL have independently approved these transactions. The transactions are subject to regulatory approvals. Both Groups have expressed a strong willingness to explore strategic opportunities to work together in the future.

V Vaidyanathan, vice chairman & managing director, Future Capital said, "We are excited about building an excellent broking and wealth management franchise brought to us through the acquisition of FCH Centrum Wealth Managers Ltd. Our exit from the second joint venture of FCH Centrum Direct Ltd is in line with our already stated strategy in this matter."

Chandir Gidwani, chairman, Centrum Capital Ltd said, "We will continue to build on our successful and market leading franchise in the forex money changing & travel vertical. This business forms a part of the core of our retail financial services strategy. We will continue to invest and grow our wealth management and high net worth broking and distribution businesses on the Centrum Broking platform. We are excited about the market potential for retail financial services in India and have drawn up an ambitious plan to be a leading player in this space."

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Royal Sundaram to inject Rs65 crore into business

Royal Sundaram has announced the infusion of Rs65 crore of additional capital (including premium)

Royal Sundaram Alliance Insurance Company Ltd, the first private sector general insurance company to be licensed in India, has announced the infusion of Rs65 crore of additional capital (including premium). This infusion will be completed by the end of the current financial year, taking the total paid up capital and premium to Rs275 crore.

Speaking on the occasion, managing director, Ajay Bimbhet said, "We have had a robust growth this year of nearly 25%. We will be closing the financial year with premium collection (GWP) more than Rs1,000 crore. This injection of the capital will support our plans of continued growth and expansion. Going forward, Royal Sundaram plans to continue keeping its focus on retail business."

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Air India to reintroduce Chennai-Colombo flight

National air carrier Air India will reintroduce flights connecting Chennai and Colombo from 27th March

National air carrier Air India will reintroduce flights connecting Chennai and Colombo from 27th March, the company said.

"Air India will be reintroducing its popular Chennai-Colombo flights from 27th March," Air India said in a statement. The flight would be operated on an Airbus A321 aircraft with a capacity of 20 seats in Business class and 152 seats in the Economy class, it said.

The flight would be operated on all days except Wednesdays, it said. Air India suspended its service in this sector in November 2010, the statement said.

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