Allianz plans mutual fund biz in India

The Allianz Group, the German financial services powerhouse, is planning to foray into the booming asset management business in India, after reaching an agreement with the Delhi-based Allianz Capital & Management whereby the latter surrendered the 'Allianz' name for $ 2-3 million.

Industry players said Allianz is upbeat on entering into the mutual fund business and retail banking business after signing its third joint venture with the Bajaj group a couple of months back, a distribution company to sell financial products such as credit cards, mutual funds and home loans.

The group has already applied to the Reserve Bank of India to secure a banking licence.

Sam Ghosh, country manager of Allianz and CEO of Bajaj Allianz Life Insurance, when contacted said: "We are planning to enter into the asset management business in due course of time."

Asked if Allianz would partner Bajaj for AMC business in India, Ghosh said: "Both the parties are yet to take a call on this."

Last month, Allianz made an out-of-court settlement with the Delhi-based stock broking and investment-banking firm Allianz Capital & Management Services Ltd to end the clash of the 'Allianz' brands.

At an EGM held in the month of January this year, the shareholders of Allianz Securities Ltd approved the change in name of the company to Almondz Global Securities.

"Both the parties decided to go for an out-of -court settlement on the name," Ghosh said. He, however, refused to divulge the amount details.

"We had a problem with the name and also Allianz Germany could not enter into India. Internationally also the name created a lot of confusion for us. Allianz had a mission to come here and so we shook hands and changed the names." said Vinay Mehta, managing director, Almondz Global Securities Ltd (formerly Allianz Securities).

For the life and non-life insurance business in the country, Allianz has tied up with Bajaj group.

Allianz Global Investors manages about one trillion Euros worth of assets making it one of the world's top five asset management groups. It has access to more than 60 million clients around the world.

The Allianz group provides financial services in the areas of property and casualty insurance, life and health insurance, banking and asset management to more than 70 million customers in over 70 countries.

Some of the recent entrants in the Indian mutual fund business include UBS, JP Morgan, AIG, Mirae Asset and Dawnay Day.