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Showing posts with label Aditya Birla Group. Show all posts
Showing posts with label Aditya Birla Group. Show all posts

New Bank License Eligibility rules by RBI.

11:10 PM  , , , , ,  No comments

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As the Reserve Bank of India has opened the new players to enter the banking sector, has given a hope for many private major players to enter the booming sector where the scope is very high for growth and huge potential as most of rural market is still untapped.


The draft guidelines are being issued with regular modification with cautions and conditions for the purpose of laying a strong rules and regulations. 


Few Eligibility criteria as per the new guidelines are.,
  • Minimum paid up capital of Rs.500 crores,
  • Should get listed within 2 years of time,
  • Should setup at least 25% of their branches in rural unbanked areas (especially tier-III) 
  • Be owned by a separate holding company that cannot borrow money to float the bank.
  • Foreign holding in the bank has to be less than 49%,
  • Operating company has to get its share in the company to 20% within 10years from start.
Finance companies has a chance to convert themselves into bank and even promoter groups with good credential(10 years record will be considered) in running their business can setup banks.


The Major companies who are in the race for new bank licenses are.,

Tatas, Anil Dhirubhai Ambani Group(ADAG), Power Finance Corporation(PFC), Aditya Birla Group, Bajaj Group, Larsen & Toubro (L&T), LIC Housing, Industrial Finance Corporation of India(IFCI), Religare, Srei, Mahindra and Mahindra(M&M).




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Aditya Birla Group in Acquisition Spree.

10:40 PM  , ,  2 comments

Recent times, the word Acquisition is buzzing all over the country, Inbound acquisition and outbound acquisitions number is increasing year on year(yoy) basis. One company Aditya Birla Group is in a high-speed acquisition mode.  Three(3) Acquisitions in just four months that cumalatively cost $1.4billion( that is close to Rs.6,300 crore) are the signs a man looking for size and scale, and getting them in a hurry. 


Kumar Mangalam Birla,
 Chairman of Aditya Birla Group
Kumar Mangalam Birla(43 yrs in age) chairman of the Aditya Birla Group(ABG) aims to more than double the revenue of his conglomerate to $65 billion(Rs.2.93lakhs crore approximately) by 2015 as per the recent press note released where the figures will take it to the current revenue of Tata Group.


Recent Acquisitions of Aditya Birla Group.
On 18th April, the group bough Swedish pulp and fiber maker Domsjo Fabriker for $340 Million(Rs.1530 crore). Earlier in same industry it took over Athloville and Nackawic in Canada, and Jingwei Fibres Company in China. 
Note: Aditya Birla Group is the largest player in the Pulp and Fiber maker segment with 20% market share.
Earlier it also agreed to acquire the chloro-chemicals division(CCD) of Kilkata based Kanoria Chemicals & industries(KCIL) for Rs.830crore in cash.
Aditya Birla Group first deal of the year was the acquisition of Atlanta based Columbian Chemical Company for $875 million (Rs3975 crore) in January. 


Other Recent Deals of Aditya Birla Group
Domsjo Fabriker for $340 Million.(April 2011)
Kanoria Chemicals for $184 Million(mn).
Columbian Chemicals $875 mn (Jan 2011)
Spice Telecom $600 mn (June 2008)
Novelis $5.7 bn (Feb 2007)
Tata's stake in Idea for $983 mn (April 2006)
Ultratech Cement $183 mn (May 2004)

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