Creating India's leading financial superstore
May 2010
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Contents
Reliance ADA group
Reliance Capital
Reliance Mutual Fund
Reliance Life Insurance
Reliance General Insurance
Reliance Money
Other businesses
Product offerings @ Reliance Capital
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The vision of one man
If you can dream itYou can Do it
Our legendary founderSh. Dhirubhai Hirachand Ambani 28th December 1932 - Forever
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Reliance Anil Dhirubhai Ambani Group
Reliance ADA Group
Communications
Natural resources& Energy
Financial Services Power
Media &Entertainment
Infrastructure
Diversified
Over 150 million customers – 1 in every 8 Indians 12 million shareowners – amongst largest in the world 130,000 young, trained and motivated people Group net worth of US$ 17 billion Group market capitalization of over US$ 24 billion Flagship stocks included in Sensex, Nifty, MSCI and Futures & Options
Among India’s top 3 business groups
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Business mix
RELIA
NC
E C
APIT
AL
ASSETMANAGEMEN
T
INSURANCE
RELIANCEMONEY
HOME & CONSUMER
FINANCE
Asset Reconstruction
Mutual FundPortfolio Management
Offshore funds
Life Insurance General Insurance
Broking DistributionInvestment Banking
MortgagesLoans againstproperty
Business Loans
OTHER BUSINESSES
Creating India’s leading financial superstore
WealthManagement
Exchanges
Institutional
Broking
Pension funds
Private Equity
Vehicle Loans
VentureCapital
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Reliance Capital…
‘Most valuable financial services company’ in India*
Over 20 million customers
India’s #1 mutual fund
Among top 3 private sector life insurers
Among top 3 private sector general insurers
India’s leading brokerage and distributor of financial products
Amongst leading lenders in Indian non banking finance sector
Pan India distribution network with over 6,500 outlets
Amongst top 100 dividend paying companies in India in 2009**
… targeting leadership in all its businesses
* BT1000’ Industry ranking by Business Today - October 2009** Survey by Economic Times – November 2008
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Reliance Mutual Fund
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Reliance Mutual Fund – an overview #1 Mutual Fund in India
AAUM: Rs 1,10,412 Cr.2 Trn Market share – 15%
Products: 35 schemes – starting from Rs. 100 Debt, Equity and Liquid
Extensive Distribution Network Present across 246 locations in India Distributor Coverage 2,500 locations Presence in Dubai, Singapore, Mauritius, Malaysia & UK
Customers 75 lac investor folios Over 10 lac SIP accounts (market shares 30%+) Prestige Accounts: EPF and PF
1st Indian MF to launch instant redemption facility through Debit card – Reliance Any Time Money card
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AchievementsThe Recent BIG 3 Mutual Fund House of the Year, CNBCTV18-CRISIL, 2009 CRISIL Fund House Level 1 for highest level of process quality & risk management practices Moneylife has ranked RMF as ‘Best Fund House of Year 2009‘
Fund house of the Year -India Asset Mgmt 2008
Best Equity Fund House – Asian Investor
Performance
‘India’s MostTrusted MutualFund’ – 3 yearsin a row – ET-AC NielsenORG MARG
Trust
Best Fund House 2009 –Asia Risk
Most ImprovedFund House –Best of Country2007, AsiaAsset Mgmt
Quality
‘India’s Most Trusted Mutual Fund’
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Reliance Life Insurance
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Reliance Life Insurance - an overview
# 4 Private sector life insurance Company Market share – 10.2%
Only 100% Indian owned life insurer Premium growth trajectory – amongst fastest growing Customers
Over 4 million customers – fastest growth No of policies – over 6 mln #1 in no of policies sold in private sector
Vast distribution Network 1,247 branches Over 1,95,000 Agents
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Nationwide Geographic Footprint
East
No. of branches:
194
No. of agents:
34,136
West
No. of branches:
184 No. of agents:
18,865
Central
No. of branches:
87 No. of agents:
9,252
South
No. of branches:
158 No. of agents:
23,437
North
No. of branches:
122
No. of agents:
22,248
South Central
No. of branches:
211 No. of agents:
21,126
North Central
No. of branches:
189 No. of agents:
20,549
Source: Reliance Life as of March 2009
Unparalled distribution network growth in past 4 years
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Key Achievements
Living upto a proud legacy
Demonstrated Unparalleled Growth 4th largest private player in just over 2
years No 1 private insurer in number of
policies YTD FY10 Over 1,200 branches up from 156 in
FY06 Fastest to reach the 6 million policy
mark
State of Art Technology Most comprehensive online service &
sales platform Real-time & online company
dashboards Auto Underwriting systems One-step fulfillment CRM system Global CIO 100 Honoree
Customer & Quality Focus Rated ‘Excellent’ in CSAT for 2 years 1st Life Insurer to be ISO 9001 certified
for all processes pan-India Winner of Internal chairman’s quality
award Winner of Quality Council of India
award-2008
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Reliance General Insurance
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Reliance General Insurance – an overview # 3 private sector general
insurance company 14 % private sector market share
Products Motor Insurance largest business
Health and SME segments – fastest growing segments
Distribution Network Branches: 200
Over 4,600 intermediaries Over 3 million customers
3rd largest private sector general insurance player
Motor66%
Health12%
Fire7%
Engineering5%
Others10%
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Key achievements Reliance General Insurance is 3rd Largest Pvt Sector Insurance Co with
100% Indian Equity
1st Private Sector Non Life Insurance Company to get licensed from the IRDA in October 2000
Solvency ratio of 1.88 much above the stipulated ratio of 1.50
Balanced portfolio of all product classes with strong retail focus
Strength of channels in space of bancassurance / large distribution houses, agency, motor dealers and DSA, corporates and SMEs
Written around 27 lac policies till Dec 09 and have settled around 2 lac claims
Implementation of Process Excellence in form of BPMS and
6 Sigma efficiency standards & ISO Certified Company
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Reliance Consumer Finance
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Reliance Consumer Finance Started in May 2007 – emerged as one of leading lenders in Indian
non banking finance space
Loan book of Rs. 9,170 Cr – over 1,10,000 customers from 16
locations in India
As Provider of loan solution for all consumer needs
Change of focus to secured lending in April 2008
Focused on productive asset creation
Portfolio quality & profitability being chief deliverables
Three main areas – Mortgages, SME finance & Vehicle finance
Self-employed segment main customers
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Focus on quality of assets & profitability
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Loan Book Composition as on March 31, 2010
Loans against
shares, 4%
CVs, 16%
SMEs, 29%
Auto, 7%
Mortgages, 38%
Personal, 6%
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Key achievements
In less than 3 years, emerged as one of leading lenders
in Indian non banking finance space
Current assets under management – over Rs. 11,000 Cr
Now organised into – Reliance Home Finance and
Consumer Finance
Highest short term & long term rating
Quality processes appreciated by external bodies
Highest credit ratings in industry – both long & short term
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Reliance Money
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HNI Segment
Money Transfer Services & Gold
Mutual Funds, &Insurance
DistributionBroking
& Incidental Distribution
SME’s &Corporates
Wealth Management Services
Investment Banking
Touching lives across all strata of economic society
Mass Affluent
& Traders
Semi Urban Class
Catering to Rural
India
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• Urban & Semi-Urban class• Mass affluent & Traders• HNI Segment• SMEs, Corporate & UHNW
• SMEs• Corporates• UHNW
• Rural India• Urban & Semi- Urban class
• Rural India• Urban & Semi-Urban class
• HNI Segment
• Equity & Commodity• Direct & Franchisees• On-line & Call N Trade• Research & Advisory
• Issue management• Debt syndication• Distribution
• Gold Coins • Insurance• Mutual Fund • FDs & IPOs
• Profitable rural footprint• Distribution
• PMS• Structured Notes• NRI Market
Retail Broking
Investment Banking
Wealth Management
Distribution
Gold/Insur etc MTS/FFMC
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One of India’s leading brokerage and distributor of financial products
Pan India presence with over 5,000 outlets
Multiple access points to ensure effective, anytime – anywhere transactions
Focus on broking, distribution (3rd party & in-house), wealth management and investment banking
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Business Mix Equity Broking
6,40,000 customers Average daily turnover Rs 2,200 Cr Market share ~ 2.2 %
Commodity Broking 14,000 customers Average daily turnover Rs 250 Cr Market share ~ 1.00 %
Gold Coins Distribution tie-up – India Post
500 post office covered Gold Accumulation Plan
Volumes sold - 500 kg
Money Transfer Primary Agent of Western Union 60 own branches Over 4,700 agents Over 16 lac transactions in FY10
X-Sell & Third Party Amongst top 5 distributors for RLI Largest distributor for RGI Leading distributor of MFs, IPOs & FDs
Money Changing Buying and selling of Currencies, TC’s
and Travel Card #2 Exporter of Foreign Currencies Network of 60 branches and 2 export hubs
One of leading broking houses in just 3 years of operations
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Complementing financial offerings at Reliance Capital
New business initiatives
Two Verticals
Capital Markets
Advisory Services
Syndication activity
IPO / NCD / Fixed Deposits
IPO Funding : FY 2010 - Rs 2,000 Cr
Building a New Team
Started operations in Oct 2009
Focus on HNI category
Current AUM Rs. 100 Cr
Enhancing advisory capabilities
Wealth Management Investment Banking
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Other businesses
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Updates on other businesses
Reliance Equities International- Institutional broking
- Plans to take a majority stake in Quant Capital Group – subject to regulatory approvals
- Will integrate operations to achieve full benefits of business synergies, cost optimization
and increased scale of operations
Reliance Spot Exchange- New initiative for setting up modern exchanges in various segments
- Launched Reliance Spot Exchange in Oct 2009 – commenced e-auction in metals & subsequently
added spices contract
- Successfully completed 3 auctions in metals & pepper
- Aims to bring different markets together on national electronic platform – create transparency,
efficiency & infrastructure for spot markets across India
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Updates on other businesses contd..
Reliance Equity Advisors- Private equity fund
- 1st round of fund raising completed and in advanced discussions to close 2nd round
- Fund raising to commence for international fund – Reliance Alternative Investment Fund 1 LLC
- Will co-invest with domestic fund
- Target investors from International LPs and NRIs
- Invest in sunrise and growth sectors
- first investment in promising sector of education – Pathways World School
Reliance Asset Reconstruction- Acquisition, resolution and management of distressed debt
- Current asset base of over Rs. 170 million (US$ 4 million)
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Updates on other businesses contd..
Reliance Venture Asset Management (RVAM)- Venture capital arm of Reliance ADA Group
- AUM – Rs. 116 Cr
- Stage, sector and geography agnostic
- Ranked 30th in reputed US based Red Herring Top 100 Global Venture firms in 2009 – only
Indian Corporate Venture Capital to feature in this list
- Spawned companies like:
- Yatra.com – India’s largest online travel website
- Suvidhaa
- MIT and Stanford start ups – exclusive India partners for MIT & Stanford’s entrepreneurship
& business competitions VAM invest in sunrise and growth sectors
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Product offerings @ Reliance Capital….
… A complete suite of products!
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Reliance Mutual Fund Products
17 equity schemes + 15 debt schemes + 1 Balanced fund + 2 ETFs + Fixed Maturity Plans = a wide & diverse
product basket to choose from
Equity Mutual Fund Schemes - 17 Diversified Equity Funds
Reliance Growth Fund Reliance Vision Fund Reliance Equity Opportunities Fund Reliance Tax Saver (ELSS) Fund Reliance NRI Equity Fund
Sector Specific Funds Reliance Banking Fund Reliance Diversified Power Sector Fund Reliance Pharma Fund Reliance Media & Entertainment Fund
ETF Reliance Banking ETF Reliance Gold ETF
Balanced Fund RRSF Balanced Fund
Reliance Equity Fund Reliance Long Term Equity Fund Reliance Equity Advantage Fund Reliance Natural Resources Fund Reliance Infrastructure Fund Reliance Quant Plus Fund RRSF Equity Fund Reliance Equity Linked Savings Fund Series I
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Reliance Mutual Fund Products contd…
Products start with minimum investment of Rs. 5,000/ month
SIPs as low as Rs. 100/ month
Fixed Income Mutual Fund Schemes
Liquid Funds Reliance Liquid Fund – Cash Plan Reliance Liquid Fund – Treasury Plan
Long Term / Short Term Fixed Income Funds Reliance Medium Term Fund Reliance Monthly Income Plan Reliance Income Fund
Gilt Funds Reliance Gilt Securities Fund
Fixed Maturity Plans
Reliance Short Term Fund Reliance NRI Income Fund Reliance Regular Savings Fund – Debt Reliance Dual Advantagre Fixed Tenure Plan Reliance Interval Funds
Reliance Liquidity Fund Reliance Floating Rate Fund Reliance Money Manager Fund
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Reliance Life Insurance– 47 products in its basket
Protection Plans
Term (pure risk)
Savings and Investment
Plans Unit-linked
Insurance Plan Endowment
Comprehensive product portfolio and proven product innovation capabilities Product solutions offering lifestyle management 29 new products launched in last three years
Product Categories
Individual - 39 Group - 8
Group LifeChild Plans
Unit-linked plans
Traditional plans
Employers Liability Solutions
Employers Protection Solutions
Employee Voluntary Benefits
• In-house product design and development capabilities
• Unique ability to balance profitability with product features that customers perceive as being valuable
• Wide variety of Protection, Savings & Investment Solutions for entire spectrum of life-stage needs
Retirement Plans
Unit-linked Pension plans with life cover / without life cover
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Reliance Life Product Solutions
Plans that help set aside money for family,
achieve adream or fulfill a promise
ULIPs: Single / Regular
Premium High / Low
market exposure Gradual
investment into equities available
Parking of return in safe investments
Pensions Traditional Plans:
Money Back Endowment Whole Life Plan
Savings & Investments
Plans that aim to reduce uncertainty and ensure family protection at all
times
ULIPs: Health Plan for
savings & health
Traditional Plans: Term Plan for
pure insurance Credit Guardian
for loan protections
Endowment for Insurance + savings
Protection
Plans that encourage early
savings for retirement Planning
ULIPs: Golden Years
Plan Series SAIP – Life stage
asset allocation RMGP –
Guarantee protection against any downside
Retirement
Plans to secure the child’s future needs to provide
them the best in life
ULIPs: Secure Child Plan
with Return Shield & Capital Guarantee
RSIP for flexibility, insurance and savings
Health Plan for child’s health
Traditional Plans Risk protection,
future premium waivers & Guaranteed fixed benefits
Child
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Reliance Life product basket 47 products comprising of ULIPs and traditional products
Third parties & franchisees: Rs. 10,000 or less - Reliance Tradition Super Invest Assure Plan
Non linked Customer bonus upto 250% of first year premium Accumulation rate guaranteed a year in advance Flexible features of loan, additional accumulation & partial withdrawal from top up
account
Rs. 10,000 or more – Super Invest Assure Basic Plan ULIP with loyalty bonus In higher premium segment – better allocation with increasing premium
amount Individual advisors:
Apart from products detailed above, Automatic Investment Plan, Pension product Golden Years Plan, Reliance Super InvestAssure Plus, Highest NAV Guarantee
For HNIs – Reliance Premium Life – low cost ULIP with 1st year charge of only 6% and no charges on renewal allocation
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Reliance General Insurance – over 100 products…
Retail cust. & Deposit holders
Retail cust. & Deposit holders
•Motor Insurance•Home Insurance•Health & PA•Loan Care•Householders Policy
SME customersSME customers
• Shopkeeper Policy• Industry & Commercial Care
Corporate CustomersCorporate Customers
• Fire policy• Engg. policy• Marine policy• Liability policy
Interplay of products and customer segments…
… to encompass retail + institutional customer space
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•Motor Insurance
•Education Protect ( From
Institute to Student Loans)
•Loan Protect (Bundled with Home
Home & Auto Loan File- Proposal Based
Insurance with Critical Illness, Job Loss,
EMI Based Insurance &Personal Accidental Death
•Home Care
(Contents & Structure)
Reliance General Insurance products
•Workman compensation (SME)
•Fire
•Shopkeeper/Office Package Policy
•Commercial Care (SMEs)
•Shopkeeper Package
•Money Insurance
•Marine Cargo
•Liability Product
•Jewelry Block
•Student Overseas Medical Plan
Motor Vehicle / Home/ Education/Mortgage
Personal /Consumer Loans
•Health on Card Base•Personal Loan Care•Critical Illness•Personal Accident
•Commercial Care Policy
•Other Package Policy
•Liability Policy & GPA
•Marine Cargo
•Transit Insurance
•Fire & Eng.
•EAR / CAR
Mortgage Loan for Trade
& Service Sector
Corporate/SME /
All Purpose Agri Term Loan
•Farmer Package Policy•Micro Insurance Product•Janta Personal Accident
A Total End to End Solution….
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Loan Care Product (Home, PL and Auto) Unfortunate death/permanent total disability arising out of accident, or Being diagnosed as contracting any of the listed Critical Illnesses, or Loss of employment on account of termination/dismissal/retrenchment
Education Protect – Useful for relationship with Education Institution PA + Health Cover for students and staff Fire and Contents cover for the building Many other optional covers
Complimentary products bundled offers value to customers
Reliance General Insurance products contd…
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Reliance Consumer Finance
Diverse range of loan offerings
Home Loans
Loans against property
Loans against policies
Auto loans
Loans for Commercial Vehicles
Loans for Construction Equipment
Loans against Shares
SME Loans
Micro finance products
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Reliance Money Equity & commodity broking – offer online broking services to
customers & employees Wealth Management Services – niche provider of bouquet of
investment products focused on retirement of Ultra HNI & also for investment companies, corporate or institutions
Custom made equity portfolios
Equity & debt mutual fund investments
Structured products
Advisory services on private equity & real estate oriented funds
Sub agent opportunity for money transfer services Gold coin distribution IPO distribution & funding
Bouquet of services under one brand!
Thank you
May 2010