Chennai, 27 January 2006
The Murugappa Group and Singapore’s DBS Bank
announced today the closure of the
transaction leading to both becoming equal
partners in the joint venture Cholamandalam
Investment & Finance Company Limited (CIFCL).
CIFCL will be renamed “Cholamandalam DBS
Finance Limited” following the receipt of
regulatory and shareholder approvals. The
Murugappa Group and DBS Bank each hold
37.48% of the equity in the joint venture
company; the remaining 25.04% is with the
public. DBS acquired 20% of its stake from
the public through an open offer and the
remaining 17.48% from Tube Investments of
India Ltd (TI) through a share purchase
agreement after obtaining the regulatory
approvals.
The Board of Directors of the company now
comprises 9 members. Mr M A Alagappan
continues as Chairman. Mr Rajan Raju, Ms
Susan Ho and Mr Pranam Wahi are the new
Board members representing DBS Bank. Mr M
Anandan and Mr Partho S Datta continue on
the Board as representatives of the
Murugappa Group.In addition, Mr R V Kanoria,
Mr V P Mahendra and Mr Ravi Ramu continue as
independent Directors.The company
announced that it has launched a new
Personal Loan product. The new product will
initially be available to customers in
Chennai, Bangalore and Coimbatore, followed
by a nationwide rollout in the coming
months.
Mr M A Alagappan, Chairman,
said: “For twenty eight years
now,Cholamandalam has continually reinvented
itself and has grown into a national player
with a robust presence in a range of
financial services. This joint venture with
DBS Bank marks the beginning of a new and
exciting phase of growth for the company. I
am confident that the company will leverage
its strong local distribution and DBS Bank’s
expertise in consumer finance and generate
substantial value for customers and
shareholders in the years to come.”
Mr Rajan Raju, Managing Director –
South and South East Asia, DBS Bank,said:
“We look forward to working with the
well-respected and well-established
Murugappa Group to develop Cholamandalam DBS
Finance into a leader in consumer finance in
India. We will also capture the growing
wealth management business opportunities
through DBS Cholamandalam Asset Management,
DBS Cholamandalam Securities and DBS
Cholamandalam Distribution Services. This
partnership underscores DBS’ continued
commitment to India and positions us well to
service India’s growing connectivity to
Asia.”
Mr M Anandan, Managing
Director, Cholamandalam, said: “I am
delighted that the joint venture is now
fully operational. We are committed to
making available competitive consumer
finance products to service the needs of our
customers.Following the launch of our
Personal Loan product, we are looking to
introduce Home Equity loans in the next few
months.”
The company announced
financial results for the quarter ended
December 31,2005. Total disbursements for
the first nine months of the year increased
17% to Rs. 930 crores. The company’s gross
managed assets rose 19% to Rs.2210
crores.Profit Before Tax was Rs. 39.7 crores.
Mr Anandan said, “Our automobile finance
business has continued to show good growth
due to our increased focus on the
used-vehicles segment, a deliberate move to
offset the slowdown in sales and sustained
pricing pressure in the new commercial
vehicles segment.” About DBS Headquartered in Singapore, DBS is one of
the largest financial services groups in
Asia. The largest bank in Singapore and the
fifth largest banking group in Hong Kong as
measured by assets, DBS has leading
positions in consumer banking,treasury and
markets, asset management, securities
brokerage, equity and debt fund raising.
Beyond the anchor markets of Singapore and
Hong Kong, DBS serves corporate,
institutional and retail customers through
its operations in Thailand, Malaysia,
Indonesia, India and The Philippines. In
China, the Bank has branches and
representative offices in Shanghai, Beijing,
Guangzhou, Shenzhen, Fuzhou,
Tianjin,Dongguan and Hangzhou. The Bank's
credit ratings are one of the highest among
banks competing in the Asia-Pacific region,
and the highest among banks in Singapore.
More information about DBS Group Holdings
and DBS Bank can be obtained from our
website (www.dbs.com).
About Cholamandalam DBS Finance Limited (CDFL)
Cholamandalam DBS Finance Limited (CDFL) along with
its subsidiaries and affiliates offers
individual and institutional customers a
range of financial services – automobile
finance, capital market finance, general
insurance, mutual funds, securities broking,
distribution of investment and insurance
products and risk management. Cholamandalam
shares are listed on Bombay (BSE) and
National (NSE) stock exchanges.
(www.cholamandalam.com)
Cholamandalam is part of the US $1.6 billion
Murugappa Group, a pioneer and market leader
in several fields with manufacturing
facilities across 12 states. The Murugappa
Group has a strong presence in abrasives,
engineering, bio-products, sanitary ware,
sugar, farm inputs, plantations and
nutraceuticals. Companies in the group
include Carborundum Universal, Coromandel
Fertilisers, EID Parry and TI of India. (www.murugappa.com)
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