Hinduja Group Eyeing Value Creation Of Over $40 Billion In BFSI Sector In Next 5-7 Years, Says Chairman Ashok P Hinduja

Hinduja Group is reportedly aiming for value creation of $35-40 billion in the banking, financial services and insurance (BFSI) sector in the next five to seven years by adding more verticals.

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The group is pursuing diversification and intends to venture into emerging technology, digital, and fintech sectors as a strategic component of its new growth phase. This expansion strategy includes acquisitions aimed at bridging gaps and achieving comprehensive solutions within the BFSI sector, Ashok P. Hinduja, chairman of Hinduja Group Companies (India) told media in London, as cited by Livemint.

“So the first phase will start and the objective of the holding structure, which is a Mauritius-based IndusInd International, is to grow into the BFSI sector to complete the full stack," he said.

The Hinduja Group holds ownership of various enterprises, including IndusInd Bank, Hinduja Leyland Finance, and Hinduja Bank (Switzerland).

“So that will cover part of it, the balance left out is the mutual fund, the wealth management that we are also on a lookout for. Hopefully by the end of this financial year, mostly 95 percent of the BFSI sector will be covered," he said.

Chairman Ashok Hinduja further added that the group is confident of acquiring debt-ridden Reliance Capital by November this year. However, IndusInd International Holdings Ltd (IIHL) has surfaced as the exclusive bidder for Reliance Capital, while it finds itself entangled in a legal dispute with Torrent Investments, which was excluded from the second round of the auction.

Ashok Hinduja further stated that the acquisition of Reliance Capital will expand the group's presence into sectors such as life insurance, general insurance, and health insurance, in addition to ARC (asset reconstruction company) and stockbroking.

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“The plan for BFSI is all clear, it is all known where this whole sector will finally go... (We are) targeting to touch anywhere between $35 to 40 billion value creation on that," said Hinduja.