Saturday, July 19, 2008

Nomura in India drive

Mizuho, Mitsubishi UFJ, Daiwa SMBC and now Nomura. All point to growing interest in the brokerage revenues from India. Certainly spells an opportunity for finance professionals in India.In the past it used to be an opportunity only for bilingual Chartered Accountants and now investment banking professionals too. It seems India is set to follow the Japanese growth trajectory in the view of the spokesperson here. If that happens then Mumbai's name will be taken in the same breath as New York and London. Certainly an interesting thought. Here is the article that appeared in Financial Times. Editor

By Michiyo Nakamoto in Tokyo
Friday Jul 18 2008 13:05

Nomura said it aimed to increase staff in India from 17 to about 100 in two to three years.

The drive by Nomura to expand in India highlights the growing importance for Japanese brokers of revenues outside their ageing home market.

Daiwa Securities has signed a memorandum of understanding with Brazil's Banco Itau Financeira to co-operate in asset management, brokerage, investment banking and research.

In April, Daiwa SMBC, an investment banking joint venture, began operations as the first Japanese broker with a full line-up of services in India.

Daiwa Securities Financial Group owns 60 per cent of Daiwa SMBC, with the remainder owned by Sumitomo Mitsui Financial Group.

Mitsubishi UFJ Securities set up a subsidiary in Mumbai in April. In the same month the Japanese group increased its stake in King Eng - a south-east Asian investment bank based in Singapore with operations in markets including Hong Kong, Thailand, Indonesia - to 14.63 per cent.

Mizuho Securities has also signed a memorandum of understanding with Tata Capital to jointly launch a private equity fund and offer wealth management services.

Apart from its foray into India, Nomura has set up a branch in Moscow and is aiming to set up a local subsidiary in Saudi Arabia by the end of the fiscal year in March.

This is Nomura's third attempt to establish itself in India.

Last year, Nomura failed in its attempt to take a stake in Enam, an Indian financial services group.

Before that, Nomura had a Delhi office and later a Mumbai office, both of which were closed after a few years.

The difference this time, Nomura said, is that the Indian market is expanding rapidly and deals have grown to a size comparable to those in Japan.

"It is like Japan was several years ago," in terms of the growth potential of the capital markets, according to Nomura.

1 comment:

Chus said...

This is what I think: Nomura