The Hindu Business Line : Reliance Money targets 10,000 kiosks by March 2008

MR SUDIP BANDYOPADHYAY (left), CEO, Reliance Money, and Mr Partha Dattagupta, CEO, Barista, after launching the Reliance Money kiosk in Kolkata on Thursday. — A. Roy Chowdhury

Kolkata May 31 Reliance Money Ltd is changing tack in order to move a step beyond the retail business, which has so far been its mainstay.

RML, which intends to compete with strong retail brokerage players like ICICI Direct, will soon start catering to institutional clients in a more organised manner, though retail will continue to be its focus.

The company plans to pay more attention to an area that has already seen considerable demand, courtesy wholesale investors who are increasingly providing significant business to securities broking outfits.

RML, said Mr Sudip Bandyopadhyay, CEO, is currently providing a range of trading options to clients. The latter can, incidentally, call and trade as well. The idea is to increase the number of outlets RML currently has in order to reach out to more customers.

Points of presence

"We are trying to expand operations in several ways. RML, which now has about 2,500 kiosks, will have 10,000 by the close of the fiscal. It will also work out tie-ups with select organisations with a view to increase our points of presence," he told newspersons here.

Quite a few large players — including Kotak Mahindra, Motilal Oswal and Indiabulls — have notched up sizeable business in recent times, each of them taking care to ensure that they are well spread nationally. This, it is felt, has helped expand the market.

"The size of the market for financial intermediaries like brokers is still quite limited, considering the relatively small number of demat accounts. This is set to change drastically in the days ahead," Mr Bandyopadhyay maintained.

Internet impediment

The low penetration of the Internet — said to be 3.6 per cent — is a serious impediment, it is felt. However, the rate of growth on this front is quite impressive, leading to the belief that the penetration of technology (read: broadband connectivity) will help the cause of investment in the market

RML, it is pointed out, also vends insurance and mutual funds. It has distribution tie-ups with 17 fund houses and a number of insurance companies.

RML today cemented its ties with Barista Coffee Co, which will install its kiosks across the country. The company hopes to strengthen its distribution reach through this association.

Gold buyback

Reliance Money will provide a liquidity window for customers who, after having purchased gold coins from its outlets, hope to sell them back to the company.

RML expects to strike a different note on this front — not all institutions (such as banks) are ready to buy back gold coins after selling them to clients.

The retailing of gold coins will pick up in India, Mr Bandyopadhyay said in this context, while referring to trends seen in the past.

RML also proposes to step into consumer financing distribution. It also intends to provide money transfer and money changing platforms to clients. At the moment, it provides access to equity, derivatives, funds, insurance and credit cards.

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