The Hindu Business Line : Cholamandalam AMC launches exercise in brand-building

CHOLAMANDALAM Asset Management Company, part of the Chennai-based Rs 5,200-crore Murugappa Group, has embarked upon a major brand strengthening exercise.

"The exercise also involves restructuring our sales team, building strong relationships with distributors, opening significant service centres in smaller towns across the country and building a strong and complete product portfolio," the AMC Chief Marketing Officer, Mr Vineet Potnis, told Business Line.

While admitting that the AMC is currently undergoing a rough phase, he was confident of an early recovery. Stating that the Murugappa Group always believed in a conservative approach aimed at ensuring safe returns to the investors, he said the focus was never on the short-term performances.

According to Mr Vineet Potnis, the measures taken up by the management have started yielding results by way of around 100 per cent growth during the current fiscal. Compared to the Rs 850-crore of assets under management (AUM) at the end of March 2003, the AMC had crossed Rs 1,463 crore by February 2004 and expects to close the current fiscal with around Rs 1,600 crore of AUM, he said.

"We have set an ambitious target of achieving an AUM of Rs 3,000 crore by the end of fiscal 2005. The group has committed its financial support for the measures being taken up by the AMC and also expressed its willingness to infuse the capital required," Mr Vineet Potnis said.

Stating that it is difficult to rope in banks for the distribution of mutual funds since many banks prefer to go by the size and track record of the AMC, he, however, said the AMC had successfully tied-up with HDFC Bank recently.

"We hope to enter into similar pacts with a few public sector banks and foreign banks shortly. In an encouraging development, some of the public sector banks like Union Bank of India have started availing the services of Cholamandalam AMC for training the banking staff in marketing of mutual funds," he said.

On the retail front, the AMC has already achieved significant growth during the last six months. As against around 150 brokers six months ago, the AMC has now nearly 400 brokers for selling its products.

Currently having a portfolio of seven products, the AMC has realised that it was missing on a complete product range. Accordingly, it is now planning to launch five more products during the fiscal 2005. These include floating rate debt fund, mid-cap diversified fund and an equity fund.

"We have short-listed around 25 smaller towns across the country for opening our servicing centres. We have also decided to cross sell our products through our group outfits such as Cholamandalam General Insurance, Cholamandalam Investment & Finance Company, Cholamandalam Securities Ltd and Cholamandalam Distribution Services," Mr Vineet Potnis said.

More Stories on : Brands | Asset Management Companies

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Lee Cooper eyewear, innerwear to hit shelves by end April

D'damas to roll out signature jewellery

Godfrey Phillips sees nothing surrogate here

Samsung bid to push microwaves

BPCL `Speed' draws more sporting enthusiasts

Mother Dairy ice-cream forays into Punjab, UP

Cholamandalam AMC launches exercise in brand-building

Tommy Hilfiger to debut with sportswear, jeans

Talks on with Sierra for footwear rights

Shampoo war: How will it wash?

Oscar launches DVD player at Rs 4,290