BMA Wealth Creators to foray into portfolio mgmt

Written by Economy Bureau | Kolkata, Jul 23 | Updated: Jul 24 2008, 08:21am hrs
BMA Wealth Creators Pvt Ltd (BWCPL), a part of Rs 850 crore BMA Group, is foraying into portfolio management services (PMS) and institutional broking within three to six months. At present, the company's areas of operations include mutual funds, commodities and stock broking.

The company was planning to increase the number of its branches from 670 at present to 800 across the country by the end of this financial year, said BWCPL chief executive officer and managing director Anubhav Bhatter.

"We are one of the fastest growing financial services organisations in eastern India. Our aim is to become number one in the next three years," Bhatter said here on Wednesday. Currently, BWCPL boasts of a client base of 23,500 in broking and over 15,550 in depository with assets under management of Rs 250 crore. "We are going to invest Rs 50 crore through internal accruals and promoter funding for expanding our footprint," he said.

BWCPL's turnover during the previous fiscal was Rs 35-40 crore. It is expected to double in the current fiscal, according to Bhatter. "Around 80% of revenue comes from traders and the rest from long-term investors, while the eastern region contributes around 75% of the total turnover," he said. The company, at present, has a market share of 1% in the Rs 70,000-crore financial services market. "We expect it to be 2% by the next fiscal," Bhatter said.

Following its foray into portfolio management services and institutional broking, the company expects to earn 15-20% of revenue from these businesses. "For PMS, our plan is to mobilise Rs 20 crore from our clients in six months after its launch," Bhatter said. For PMS and institutional broking, domestic high-net individuals and institutions, respectively, would be targeted initially, he added.

"We are also in talks with a few merchant bankers in eastern India for launching a non banking financial company (NBFC) to fund our clients," Bhatter said. The company also has plans to foray into insurance broking by the year-end. However, nothing has been finalised yet, the MD said.

The BMA Group, which reported a turnover of Rs 850 crore last fiscal, is targeting Rs 1,100 crore this fiscal, said director Avinash Agarwalla. The group will set up a 0.03 million tonne steel plant either in West Bengal or in south India in two to three years at an investment of around Rs 300 crore, he said.