swot of abml

8/4/2019 Swot of Abml

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Aditya Birla Money formerly known as Apollo

Sindhoori Capital Investments is a leading player inthe broking space with nearly 15 years ofexperience.

It became a part of Aditya Birla Group in March2009, when the group acquired 76% of thecompany.

The Company has a strong distribution network ofover 1400 own branches and franchisee network, alarge customer base in excess of 1,80,000, a strongtechnology backbone and a range of productsdelivered through a robust online and offline model.


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The Company boasts of immense talent pool

and vertical specialists which add to itspositioning as a major player in this segment.

Aditya Birla Money is listed on National StockExchange of India Limited [NSE] and The

Bombay Stock Exchange Limited [BSE]. It isalso registered as Depository Participant withboth NSDL and CDSL.


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Key statistics about Aditya Birla Money

Ltd.

Industry:- Finance & Investments

Head-Office:- Chennai, India

Subsidiary Company:- Aditya Birla CommoditiesBroking Limited.

Website:- www.adityabirlamoney.com


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TAKEOVERS:-

Apollo Sindhoori Capital Investments Limited wastakeover by Aditya Birla Group and changed its

name to Aditya Birla Money Limited in August 2009.

PROMOTERS

Aditya Birla Group.


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CURRENT TOP MANAGEMENT:

1. Mr. S. Ramasubramanian Managing Director

2. Mr. P. Sudhir Rao Independent Director

3. Mr. G. Vijayraghavan Independent Director

4. Mr. Manoj Kedia Non-Executive Director

5. Mr. S Balaji Company Secretary

6. Mr. S R Batliboi & Associates Auditor


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VISION , MISSION & VALUES:-

VISION OF ABML:To become a leader in offering the best financialproducts in India with a strong focus on its customersand partners. A strict code of ethics combined with

strong values and principles has enabled us tobecome one of the most trustworthy brands in thecountry.

MISSION OF ABML:To deliver superior value to our customers,shareholders, employees and society at large.


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VALUES OF ABSL:

Integrity: Honesty in every action.

Commitment: Deliver on the promise.

Passion: Energized action.

Seamlessness: Boundary less in letter & spirit.

Speed: One step ahead always.


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TOUCH POINTS OF ABML:

Aditya Birla Money Ltd offerings are delivered

through a strong pan India distribution network of

about 1400 own and franchisee, terminals branches,

a robust online and offline model with a strong

technology backbone to a large customer base, in

excess of 1.8 lakhs.


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SERVICES PROVIDED BY ABML:


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FINANCIAL ASPECTS:Mar '10 June '10 Sep '10 Dec '10 Mar '11

Sales Turnover 16.26 17.45 22.12 33.81 25.51

Total Income 16.89 17.81 22.44 40.16 26.70

Total Expenses 22.26 24.76 28.06 27.06 19.73

Operating Profit -6.00 -7.31 -5.94 6.75 5.78

Gross Profit -5.37 -6.95 -5.62 13.10 6.97

Interest 1.22 1.26 1.34 1.99 1.21

PBDT -6.60 -8.21 -6.95 2.95 5.77

Depreciation 1.72 1.98 1.80 1.76 1.62

PBT -8.32 -10.19 -8.75 1.19 4.15

Tax -1.20 -2.50 -2.89 -0.14 1.38

Net Profit -7.12 -7.69 -5.86 1.33 2.77

Earnings Per

Share

0.15 0.20 0.20 0.24 0.50

Equity 5.54 5.54 5.54 5.54 5.54

Face Value 1.00 1.00 1.00 1.00 1.00


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Monthly fluctuation in price of the

share:


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STAKEHOLDERS:GovernmentCustomers

EmployeesOwner


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SWOT Analysis of ABML:

Marketing Strength:Good Brand Image.

Right strategy for the right products.

Superior customer service vs. competitors.Products have required accreditation.

High degree of customer satisfaction.

Lower response time with efficient and effective

service.

Excellent outreach with a large distribution network.


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Financial Strength:

Companys Income from Operations was up by 51%

at Rs. 11,045.93 Lakhs, compared to Rs. 7,309.34

Lakhs in the previous year.

H R Strength:

Good working environments.Dedicated workforce aiming at making a long-term

career in the field.


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Weakness:

Marketing Weakness:

Some gaps in range for certain sectors.

There is no technical support of the foreign principals as

ABSL is not having any foreign tie-up as other players

have.

Overdependence on fellow subsidiaries for various

Supplies.

Sudden expansion this year by establishing more than

125 branches has increased operations and

administration expenses due to which losses incurred.


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H R Weakness:

Customer service staff need training.Processes and systems, etc.

Management cover insufficient.

Financial Weakness:

Earning per share is decreasing.


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Opportunities:

De-tariff

IRDA removed controls on pricing in General Insurance

business with effect from 1st January, 2008.

The industry is going to be freed from product wordings

and policy wordings.Can become market leader.

Long term growth opportunities in the India.

Cost containment initiatives likely to improve margins.Acquisitions and divestments improving the business

portfolio.


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Threats:

New Entrants

Bharti Axa General Insurance Company Ltd.-June

2009.

New tie-ups by the competitors.

Online travel portal clear-trip ties up with Tata AIG

to offer travel insurance.ICICI Prudential inks pact with Suvidha Info serve.


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Declining demand for insurance related investment

products.

Insurance industrys prospects affected by global

economic conditions.

Increased incidence of natural disasters testing

claims paying capability.

Volatility in financial markets likely to impact

investment returns.

Many foreign bank giants are going to enter Indian

market. They have very large portfolio of various

verticals and products with them.


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Conclusion:

Insurance sector today playing a major role ineveryones life lot more than ever before life currently

there is a comprehensive range of products covering

each type of policy available in the market. ABSL alsogives various riders, which provides extra benefits to

the customers. And we came to know about the

pioneering features of ABSL, like sales procedure etc.


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Recommendation:

1.Competition from public sector and foreign banks

remains a key challenge for private sector.

2.ABSL need to reorient their staff and effectively

utilize technology platforms to retain customers.

3. ABSL should update their portfolio timely.

4. ABSL should have proper division of departments

under heads.

5. ABSL should start some more pension plan.


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6.ABSL should have more children plans, and morehelp line plans.

7. ABSL should provide more information to the

customer so that they become more aware aboutinsurance.


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References:

www.adityabirlamoneyltd.com

www.Paisawaisa.com/LifeInsurance

Company brochure

Company brochure/ GOLD- PLUSII PLAN
http://www.adityabirlamoneyltd.com/http://www.adityabirlamoneyltd.com/


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THANK YOU

swot of abml

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