Mumbai, Oct 8: Asset management company Reliance Mutual Fund has been renamed as Nippon India Mutual Fund.
Nippon India Mutual Fund becomes the largest foreign-owned AMC in India, wherein Japan’s largest life insurance company Nippon Life Insurance currently holds 75 per cent stake. Nippon Life Insurance, Japan's largest Life Insurance company and a global financial services conglomerate announced the integration of Nippon India Mutual Fund into their global unified asset management fold, by becoming the single largest shareholder in the company.
Sundeep Sikka will continue to lead the company with the same management team, company statement said. Mr Hiroshi Shimizu, President, Nippon Life Insurance Company said "We had initially invested in Indian life insurance business in 2011 and Indian asset management business in 2012. We had entered India at right time in both asset management and life insurance businesses with long term vision and the completion of this transaction echoes our commitment for India. Indian Asset Management space is quite attractive and has a long-term growth potential which is in line with our goals. We believe that the core management team and the entire team at Nippon India Mutual Fund will be key driver in the growth story."
He further added saying, "We will provide full support to expand International and Alternate business by leveraging our Global network. We remain committed for the success of India business both in domestic and international markets. We are also very keen to incorporate more of global expertise into the mix and further improve upon processes in a steady manner wherever it helps - especially areas such as risk management and governance practices."
In Japan, about 1 out of 12 is a policy holder of Nippon Life Insurance and they have similar vision in India for their mutual fund business.
Speaking on the occasion, Mr. Sundeep Sikka, ED and CEO, Nippon India Mutual Fund said "I am extremely privileged to be part of the global conglomerate and while the company starts its journey with its new identity, the management team remains committed to take it to next level of growth with the support of our investors and stakeholders. It has always been a great opportunity to work with Nippon Life, who have always held the investors interests in mind. Nippon Life Insurance has been an extremely supportive shareholder for last 7 years and this transaction would set the stage for the long-term growth of the company". He also added saying, "Company will continue its focus to increase market share and increase in profitability".
Earlier, Reliance Capital had announced in May that it had signed binding definitive agreements with Nippon Life Insurance of Japan. Under the deal, Reliance Capital will exit the mutual funds business by selling its stake in Reliance Nippon Asset Management to Nippon Life Insurance. At the time of announcement, both partners held 42.88 per cent stake each in the company, while the rest was with public shareholders. (UNI)