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Mahindra & Mahindra Financial Services, through its subsidiary, Mahindra Asset Management Company, has entered into a joint venture with Canada-based global financial services group, Manulife.
“The 51:49 joint venture aims to expand the depth and breadth of fund offerings and retail fund penetration in the country,” it said on Friday.
“Mahindra and Manulife share a common vision of building market-leading asset management business, and servicing the needs of retail investors. Together, we are going to create a new mutual fund business,” said Ramesh Iyer, Vice-Chairman and Managing Director, Mahindra Finance.
Ashutosh Bishnoi, MD and CEO, Mahindra Asset Management Company, said that Manulife will bring in its expertise to India through the joint venture.
To seek approval
It will now seekapproval from the regulators, and is hopeful that it will get the go-ahead over the next six to eight months. For the 49 per cent stake, Manulife will be bringing in $35 million, which is likely to be deployed in technology and operations to scale up business.
“We are excited to partner with Mahindra Finance to serve the growing middle class in India by drawing experiences from our existing business,” said Anil Wadhwani, CEO and President, Manulife Asia.
When asked if Mahindra Finance would be keen to partner with Manulife in other financial services such as insurance, Iyer said: “Our interest in financial services will be in every financial sectors and possibilities. We have said in the past that general insurance is an area of interest.”
Manulife manages over $849 billion, or ₹59.98 lakh crore worth of assets, across the globe, barring the Indian market as on March 31, 2019. Mahindra AMC has assets under management of ₹5,019 crore, and over 1.6 lakh customer accounts in India.
Mahindra Finance shares fell 2.17 per cent on the BSE, and closed at ₹394.3 apiece.
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