The $1.6-billion Murugappa Group and Singapore''s DBS
Bank today announced the closure of the transaction leading
to both becoming equal partners in the joint venture Cholamandalam
Investment & Finance Company Limited (CIFCL).
will be renamed "Cholamandalam DBS Finance Limited"
following the receipt of regulatory and shareholder
approvals. The Murugappa Group and DBS Bank each hold
37.48 per cent of the equity in the joint venture company
with the public holding the remaining 25.04 per cent
being with the public. DBS acquired 20 per cent of its
stake from the public through an open offer and the
remaining 17.48 per cent from Tube Investments of India
Ltd (TI) through a share purchase agreement after obtaining
the regulatory approvals.
board of directors of the company now comprises nine
members with Rajan Raju, Susan Ho and Pranam Wahi joining
the board as DBS Bank''s representatives. M A Alagappan
continues as chairman.
company has also announced a new personal loan product,
to be available initially in Chennai, Bangalore and
Coimbatore, followed by a nationwide rollout in the
Raju, managing director, South and South East Asia,
DBS Bank, said, "We look forward to working with
the well-respected and well-established Murugappa Group
to develop Cholamandalam DBS Finance into a leader in
consumer finance in India. We will capture the growing
wealth management business opportunities through DBS
Cholamandalam Asset Management, DBS Cholamandalam Securities
and DBS Cholamandalam Distribution Services. This partnership
underscores DBS'' continued commitment to India and positions
us well to service India''s growing connectivity to Asia."
Anandan, Managing Director, Cholamandalam, said: "I
am delighted that the joint venture is now fully operational.
We are committed to making available competitive consumer
finance products to service the needs of our customers.
Following the launch of our personal loan product, we
are looking to introduce home equity loans in the next
company also announced financial results for the quarter
ended December 31, 2005. Total disbursements for the
first nine months of the year increased 17 per cent
to Rs.930 crore on the back of strong used-vehicles
finance. The company''s gross managed assets rose 19
per cent to Rs2,210 crore. Profit before tax was Rs39.7
DBS is one of the largest financial services groups
in Asiaand the largest bank in Singapore and the fifth
largest banking group in Hong Kong as measured by assets,
with leading positions in consumer banking, treasury
and markets, asset management, securities brokerage,
equity and debt fund raising.