Religare Broking wants to regain its position as one of the top 10 retail broking franchise in the country, Mayur Dwivedi, Head-Strategy, M&A and Investor Relations, Religare Enterprises Ltd (REL), has said.
This is significant as his remarks come at a time when retail broking industry in India is going through consolidation and the top 10 players are running away with market share on the back of technology developments and efficient products.
Religare Broking is a subsidiary of REL.
Baggage of Singh Brothers
Describing Religare Broking as “growth story in making”, Dwivedi said that this business – which was impacted in recent years due to Singh Brothers fiasco at the Group level – is now targeting a mix of high double digit volume growth and balanced profitability, in 2020-21.
“We want to be a sizeable player in the retail broking industry. Otherwise we will perish,” Dwivedi said.
The board of REL was reconstituted after the exit of Singh brothers – Malvinder & Shivinder – in 2018. After exit of Singh Brothers from REL Board in February 2018 and significant reduction of their shareholding in the company, the shareholders (existing institutional shareholders and new shareholders) established an independent board towards supervision/governance of the Group (REL & subsidiaries).
“Our Health Insurance business (Care Health Insurance) is on structural growth path and now we also want broking business to scale-up significantly as well. Financial support from REL and path breaking work on product, technology and customer acquisition by Religare Broking Management has resulted in both; growth in volume and broking business turning profitable, in last few quarters, after suffering losses in previous financial years”.
Currently, Dr Rashmi Saluja is the Executive Chairperson.
Religare Broking, which has physical presence in 900 locations mainly in North, will most likely going forward adopt a mix of physical and digital approach and was unlikely to position itself as an online only full discount brokerage house, company officials said. The physical infrastructure will not be reduced while investing heavily in products and technology, they said.
Currently, for Religare Broking, online volumes account for 65 per cent as against 40 per cent level last year. “We are hoping this will go up to 85 per cent,” he said.
Nitin Aggarwal, Chief Executive Officer, RBL, said the difference in product offerings by top brokers are narrowing every day. Better customer centric product and simplified/tech enabled fulfilment will be key to decide, which one is more successful than others, he said.
“We have been investing in technology and product, which is focused around customer acquisition and better customer experience. Religare Broking is re-inventing itself to be future ready, also including the specific requirements of millennial customers,” he said.