Hinduja Group Sets Sights on $35-40 Billion Value Creation in BFSI by 2030

Hinduja Group plans to bridge gaps in its BFSI domain through strategic acquisitions for comprehensive service offerings and expand into tech, digital, and fintech sectors.
Hinduja group
Hinduja group

The Hinduja Group, under the stewardship of Ashok P Hinduja, Chairman of Group Companies (India), is making substantial investments in the Banking, Financial Services, and Insurance (BFSI) sector. Their overarching objective is to achieve a value creation of USD 35-40 billion within the upcoming five to seven years.

The plan involves diversifying and expanding the conglomerate's portfolio with new verticals to address existing gaps and go beyond its conventional growth drivers, mobility, and energy segment. In its new growth phase, the conglomerate aims to expand into tech, digital, and fintech sectors. They plan to bridge gaps in the BFSI domain through strategic acquisitions for comprehensive service offerings.

The conglomerate owns IndusInd Bank, Hinduja Leyland Finance, and Hinduja Bank (Switzerland). During a media round table conducted in London, Ashok P Hinduja said "So the first phase will start and the objective of the holding structure, which is a Mauritius-based IndusInd International, is to grow into the BFSI sector to complete the full stack."

Riding on the RBI's relaxed rules allowing a promoter's stake to increase to 26% in private banks, the Hinduja Group is boosting its stake in IndusInd Bank. Concurrently, the group anticipates finalizing the acquisition of debt-laden Reliance Capital by November's end. In the battle for Reliance Capital, IndusInd International Holdings Ltd (IIHL) stands as the sole bidder, currently embroiled in a legal dispute with Torrent Investments, which was excluded in the second round of the auction. This acquisition will extend the group's reach into life insurance, general insurance, health insurance, asset reconstruction, and stockbroking, as per Ashok Hinduja.

“Hopefully by the end of this financial year, mostly 95 per cent of the BFSI sector will be covered," Hinduja said.

"The plan for BFSI is all clear, is all known that where this whole sector will finally go... (We are) targeting to touch anywhere between USD 35 to 40 billion value creation on that," he further added.

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