Nippon takes over Rcap's AMC, renames it as Nippon India MF Samsung heir may make investment announcement
MUMBAI: After the Rs 6,000crore acquisition of Reliance Capital's asset management arm, Japanese financial services major Nippon Life will be focusing on regaining the
lost market share it has had in the country with its JV with the Anil Ambani group, a top official said here on Monday.
Reliance Mutual Fund, which has been renamed as Nippon India Mutual Fund (NIMF) following the deal, used to be the leader in assets under management till a few years ago, but has slipped to the fifth spot as institutional investors pulled out their money with the troubled company.
Nippon Life entered Reliance AMC first by buying a 26 percent stake in 2012 and now owns as much as 75 percent, making it the single largest promoter. Nippon has paid Rs 6,000 crore for 75 percent stake, chief executive Sundeep Sikka told reporters.
"We will recover the losses in AUM that have happened," he added. Sikka, who will continue to lead the new company, said the retail investors have stayed with it and it has been able to grow its market share as well. NEW DELHI: South Korean firm Samsung Electronics Vice-chairman Lee Jae-yong is in India, who may announce investment plans for business expansion in the country during ongoing festive season, according to reports.
Jee-yong, the only son of hospitalized Samsung Group chief Lee Kun-hee, arrived in India on Sunday and was briefed by Samsung Electronics officials in Mumbai over the company's mobile business here, Korean news agency Yonhap reported quoting sources.
"... the South Korean tech giant may make further investment to expand its presence in the world's second-largest smartphone market," Yonhap added.
Samsung is one of the key supplier to the country's largest telecom operator Reliance Jio and is very keen to get involved in 5G business. Samsung is the second largest smartphone seller in India. According to Counterpoint Research, the Korean firm's smartphone shipments increased from 20 per cent in October-december 2018 to 25 per cent in April-june 2019 period.
During the ongoing festival season, the electronics major expects to clock a business of around Rs 3,000 crore from sale of over 20 lakh mobile phones online.
Samsung competitors Vivo and Oppo have already made massive investments announcement to ramp up their mobile manufacturing unit in the country.
The government last month slashed the tax rate for companies by almost 10 percentage points to 25.17 per cent and offered a lower rate of 17.01 per cent for new manufacturing firms in a bid to bolster economic growth rate from a six-year low by incentivising investments to help create jobs.