The Hindu Business Line : IL&FS Investsmart plans commodity financing

IIL, which has already entered the commodity broking space through a subsidiary, proposes to meet the funding requirements of individuals and corporates, a need that is expected to intensify in the days ahead. The demand for commodity funding is increasing in the country, noted Mr Sandeep Presswala, COO - Retail Business, IIL, adding that conventional sources do not account for much of the financing that is being currently done in India. Commodity PMS, too, will present an interesting opportunity for the company, it is felt, especially so in the context of the demand that is expected to be thrown up by the HNI (high net worth individuals) community. A regulatory framework is awaited. "We plan to shore up such other activities as insurance broking as well," Mr Presswala mentioned, while referring to the potential of the company's new insurance venture. On another front, IIL seeks to enter into strategic tie-ups with banks to expand reach. It has also proposed to focus more on the mass affluent segment, especially through its wealth management products. Large- and medium-sized customers will form the backbone of its plans in the coming days, it is felt. The company will continue to distribute financial products to investors. Internationally, IIL is planning new offices in five locations, including Singapore, New York and London.

E*trade tie-up

IIL's existing arrangement with E*trade, the leading Internet broking house, will be leveraged for further gains, Mr Presswala said, while referring to the `inputs' that the partnership will bring to the table.

IIL, which offers equity trading on the Net to local clients, will also utilise this relationship to set up overseas operations. E*trade is present in 12 countries.

Besides introduction of E*trade as a partner, the creation of a larger network and the plan to allocate more resources to the business will drive growth.

The tie-up will bring in technology that will enable IIL to serve customers better. It may be mentioned here that E*trade Mauritius (ETM), which now holds 13.94 per cent in IIL, will hold 11.14 per cent after IIL's forthcoming public issue (being made within the price band of Rs 110-125 per share).

ETM came in as a stakeholder in November last year.

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