The Inheritors by Sonu Bhasin

Author:Sonu Bhasin
Language: eng
Format: epub
ISBN: 9789386815958
Publisher: Penguin Random House India Private Limited
Published: 2017-10-02T04:00:00+00:00

Conclusion

Motilal Oswal speaks in a soft, measured voice and Raamdeo Agrawal in a booming one. Thus, on average, the voice decibel of the two partners is all right! The relationship between Motilal and Raamdeo is similar to their voices—different but complementary. Using the language of the capital markets, it can be said that both Motilal and Raamdeo have invested for the long term in their relationship. While others may speculate about the strength of their friendship, the two are clear that the compounding effect over the last thirty years has generated a depth in their friendship that can now be likened to a family.

Prudential Portfolio Services, and then Motilal Oswal Securities, were set up in times when the capital market was only for ‘people like them’ and not for ‘people like us’. The market itself was a different place back in 1987. Today, it is a different story altogether. It may be difficult for millennials to even fathom the pioneering spirit that was required of two youngsters to enter the broking business and then make a name for themselves. The broking community was, it seemed, only for the Gujaratis. Neither Motilal nor Raamdeo was a Gujarati. They were ‘outsiders’ in all senses of the word.

The financial services sector in India consists of the capital markets, insurance sector and the non-banking financial companies. The gross domestic savings as a percentage of the gross domestic product has risen to 30 per cent. While the total savings in India is projected to reach approximately $1.2 trillion by 2019, the bulk of it, 95 per cent, is kept in bank deposits. No wonder the asset management industry in India is among the fastest-growing in the world. With a fraction of the total savings in the capital markets, the opportunity for financial services businesses is immense.

Further, India is in a strong position—irrespective of the trajectory of the global economy, the country is set to cement its strong position at least for the next ten to fifteen years. With the Goods and Services Tax (GST) and other measures being implemented, the growth is expected to be 7.5 per cent. It is the financial services sector that is the engine of growth, with its share at 7 per cent in the GDP of the country in 2010. The other factor is that the growth in the real sector—the sector of economy that deals with actual production of products and services—is also fuelled by the financial services sector. Thus, clearly, the Motilal Oswal Group is in the right place at the right time.

The group also has the right people in the right places. The company has demonstrated over the last decade that they value professionals in the business. ‘An example of what the right person can do is when you look at their asset management business,’ says Rajan Krishnan, former CEO of Baroda Pioneer Mutual Fund. ‘The asset management business took off once they got in Ashish Somaiyya to head it,’ he continues. The focus on getting talented professionals started in the early part of the company’s life.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.