The Hindu Business Line : Goldman Sachs plans to invest $1 b in India

India plans
To invest in private equity, real estate, private wealth management for institutional clients.
Plans to start own investment banking, asset management, and securities businesses.

Mumbai , March 16

Goldman Sachs, the US-based global investment bank, on Thursday announced that it would make investments of $1 billion (about Rs 4,500 crore) in private equity, real estate, private wealth management, and other businesses in India for its institutional clients in the next couple of years as part of its new strategy for the country.

The announcement came immediately after it severed a 10-year relationship with Indian partner, the Kotak Mahindra group, by selling 25 per cent stake each in Kotak Mahindra Capital Company Ltd (for Rs 210 crore) and Kotak Mahindra Securities Ltd (Rs 123 crore).

As part of the India strategy, Goldman Sachs also plans to start its own investment banking, asset management, and securities businesses following the exit from the joint ventures.

"We will be investing about $1 billion in the next couple of years in India," Mr Edward Naylor, Director (Communications), told Business Line.

Some 45 per cent of the Forbes 400 list of wealthiest people form part of Goldman Sachs private wealth management group. The $1-billion investment in India would be over and above the amount of Rs 333 crore received from the Kotak Mahindra group, he added.

"The Indian market represents tremendous growth and opportunity. Now, more than ever, there is a compelling case for us to build an onshore presence that is fully integrated with our global businesses," said Mr Brooks Entwistle, CEO of Goldman Sachs (India).Goldman Sachs will set up separate businesses in India after getting the necessary clearances from the authorities concerned. "The process has begun," he said.

The development comes close on the heels of another US-based investment bank, Merrill Lynch, buying out the Indian partner's stake in DSP-Merrill Lynch for $500 million in December 2005.

The Hong Kong-based CLSA recently entered into an alliance with SBI Caps for tapping lucrative investment banking opportunities such as share issuances, M&As, and institutional brokerage.

More Stories on : Investment Banking | Foreign Direct Investment

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
`China could be India's largest trading partner'

Russian PM to take up bank guarantee issue

Goldman Sachs plans to invest $1 b in India

Theme-based NFOs provide good returns

Essar group now into telecom infrastructure

Govt questions Cairn's reserve claims

Corpus buys Itellix Software for $2.5 m

`Zoning will help contain spread of disease, carry on exports'

Sensex up 77 points

ING Group drafting new biz plan for India

As cost of funds rises, banks hike lending rates

I-T staff walk out over large taxpayer units plan