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January 28, 2013Reliance Capital
Reliance Capital or RCL/ RCap as it is known commonly is one of India’s leading and amongst most valuable financial services companies in the private sector. The company is headed by Mr. Anil Ambani, the chairman of Reliance Anil Dhirubhai Ambani Group or the RADA Group. The Company is a part of RADA group. The Company ranks amongst the top 3 private sector financial services and banking companies in India, in terms of net worth.
Company Facts
- Incorporated in year 1986 at Ahmadabad in Gujarat as Reliance Capital & Finance Trust Limited
- Entered the Capital Market with a maiden public issue in 1990
- Further tapped the capital market through rights issue and public issues in subsequent years
- Name RCL came into effect from January 5, 1995
- In 2006, Reliance Capital Ventures Limited merged with RCL and with this merger the shareholder base of RCL rose from 0.15 million shareholders to 1.3 million.
Business Units of Reliance Capital Limited
Reliance Capital is divided into the following financial business units:
- Asset Management
- Insurance
- Commercial Finance
- Broking and Distribution
- Other Businesses
| Asset Management | Mutual Fund, Offshore Fund, Pension fund, Portfolio Management |
| Insurance | Life Insurance, General Insurance |
| Commercial Finance | Mortgages, Loans against Property , SME Loans, Loans for Vehicles, Loans for Construction Equipment, Business Loans, Infrastructure financing |
| Broking and Distribution | Equities, Commodities and Derivatives, Wealth Management Services, Portfolio Management Services, Investment Banking, Foreign Exchange, Third Party Products |
| Other Businesses | Exchanges, Private Equity, Institutional Broking, Asset Reconstruction, Venture Capital |
Reliance Mutual Fund is amongst top two Mutual Funds in India with nearly seven million investor portfolios. Reliance Life Insurance and Reliance General Insurance are amongst the leading private sector insurers in India. Reliance Securities is one of India’s leading retail broking houses. Reliance Money is one of India’s leading distributors of financial products and services.
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Financial Highlights of Reliance Capital Limited as On 30th June 2012
- Total income of `16.8 billion (US$ 309.1 million) against `14.9 billion in the corresponding previous period an increase of 12%, driven by increase in top line of Commercial Finance and General Insurance businesses
- Net profit of Rs.451.4 million (US$ 8.4 million) against `348.3 million in the corresponding previous period a growth of 30%
- Net debt to equity improved by 35% to 1.64 as compared to 2.55 at the end of Q1 FY12
- The company had total assets of `375.6 billion (US$ 6.7 billion) – increase of 15%. The company had a net worth of `117.5 billion (US$ 2.1 billion)
- This resulted in net debt to equity ratio of 1.64, as against 2.55 as on June 30, 2011 – an improvement of 35%.
Future Growth Plans for the Next Three to Five Years:
- Increase the customer base – from 20 million to 50 million
- Increase the distribution reach – from 5 thousand to 25 thousand cities and towns
- Increase the number of business partners – from half a million to one million
- Globalize operations by leveraging our domestic experience and capabilities to expand our asset management and wealth management businesses in emerging markets across the world.
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Together, these initiatives will further accelerate the company’s growth and lead to substantial value creation for all.