'Want to Build Biz in India for 100 Yrs'

Shriram Capital, the holding company of Shriram Group, is set to foray into the wealth management business in India in partnership with the Sanlam Group of South Africa. Sanlam Chief Executive Officer PAUL BRENDAN HANRATTY, Shriram Capital MD & CEO SUBHASRI, and Sanlam Head of Asia Region DAVID MARSHALL spoke with Subrata Panda and Vishal Chhabria in Mumbai about their plans for the wealth management business and the group's banking ambitions. Edited excerpts:

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What is the idea behind foraying into the wealth business?

PAUL: We started our journey in the insurance space. But, as South Africa's population got wealthier, so in time developed the need for wealth products. We see it as a natural evolution that as the Indian economy grows, clients will get wealthier, and they will need these products. We think this is a natural business for Shriram to get into. India is going to be the second-biggest economy in the world by 2050. With that is going to come the rise of wealth management. There are very few barriers to entry. So, there will be many participants. But we believe in Shriram's reputation for trust, putting the customer first, and even the way in which the management has conducted themselves over a very long period of time.

SUBHASRI: Our insurance businesses have reached a level of stability. It's a good time for Sanlam and Shriram to build the next big opportunity in India in the financial services space. We will build a wealth management business, which is good for our customers. It is wealth management for all. It is not something only for the rich and very ultra-rich.

Will there be some kind of investment threshold for the customer?

SUBHASRI: I don't think we need to have a minimum threshold, but in Shriram, we have products like fixed deposits and insurance that we can easily package and take the customer to that minimum threshold limit. We have a suite of products within the Shriram system, which will ensure that everyone has got a product most suited for them.

What is the structure of investment?