Mahindra & Mahindra Financial Services will rope in a strategic partner for its asset management arm-Mahindra Asset Management, sources told Moneycontrol.
The company is expected to make the announcement at a press conference in Mumbai on June 21. “The strategic partner is an Indonesian player,” an industry source said without divulging details.
As on March 2019, the assets under management (AUM) of Mahindra Mutual Fund stood at Rs 4,748 crore, up 26.42 percent from December 2018.
The company already has a joint venture in the financial space with Rabo Bank. The Netherlands headquartered financial major has a full-fledged banking operations arm, Rabobank Indonesia.
If M&M decides to strengthen its ties with Rabo Bank through its Indonesia arm, the JV may be in for some tax incentives as well. Indonesia provides tax holidays in pioneering sectors, a 2017 Deloitte tax report on Indonesia said.
From a geopolitical point of view, an Indonesian arm picking up AMC stake in India could be driving home the current Indian government policy for greater cooperation in trade and investments with ASEAN nations. PM Modi participated in the November 2018 ASEAN-India Summit talks.
Indonesia is a full-time ASEAN member state and such a JV would be a corollary to the international cooperation initiative in line with India’s Act East Policy.[“source=moneycontrol”]