• PAGE ONE
• INDEX
• HOME

Emirates Bank to set up India-focussed entity

Vimala Vasan

ABU DHABI, June 5

THE UAE's Emirates Bank Group (EBG) is seeking to expand its presence in India by setting up an India-focussed entity that would harness the strengths of India as well as act as a conduit for NRI investment flows to crucial sectors such as infrastructure , technology and knowledge-based projects.

Mr. Suresh Kumar, General Manager, EBG, told Business Line that EBG has set up a Mauritius-registered public company called Tricolour Investment Ltd (TIL) last month, which will act as a vehicle for investment in the debt and equity of companies in cruci al sectors.

``India is a close neighbour of the UAE and a vast country with a lot of potential. EBG was of the view that rather than opening a branch, a dedicated entity of this nature would be more effective in harnessing the strengths of India and meeting its requ irements. EBG's goals are long term and the move is not aimed at a quick stock market return,'' he said.

EBG has a 40 per cent stake in the new company, which will later function as a foreign institutional investor. The balance is open to NRIs and institutional investors on a private placement basis. The company is capitalised at $50 millions.

``We will raise the amount in a phased manner with the first tranche of $10 millions expected to be completed by the fourth week of June,'' Mr. Kumar said.

The areas being looked at for investment by TIL include the financial and banking sector (wholesale, private and offshore banking), IT-enabled services and technology, media and telecommunication sectors, infrastructure (through an equipment bank and com munication) and real estate-related areas, Internet service providers and application service providers, life sciences and health insurance and distribution companies which reach to distribute financial products.

EBG had earlier this year, opened a representative office in Mumbai as part of its India-focussed strategy, Mr. Kumar said.

Though the company will mainly invest in India, it may also invest in India-related companies in the technology, media and telecom sectors established in other parts of the world.

``The company has a global content, though locations for future initiatives are not yet finalised,'' Mr. Kumar said. The company is also talking to institutions in the Gulf States, he said, adding that spade work on TIL's initiatives is progressing and a ll of them have significant growth potential.

TIL has already rolled out one of its India-related initiatives, with the announcement earlier this week of the establishment of the $5-million Tricolour Infotech International Inc. (T3i) as a joint venture with the ICICI group.

The company will be based at the Dubai Internet City, and will have dedicated resources and management both in Dubai and India that will be later extended to other parts of the region. T3i will work with regional clients who have financial transaction pr ocessing and software solution requirements in insurance, property companies and airlines. The project is expected to begin operations in the next few weeks, according to Mr. Kumar.