Thank you dear subscribers, we are overwhelmed with your response.
Your Turn is a unique section from ThePrint featuring points of view from its subscribers. If you are a subscriber, have a point of view, please send it to us. If not, do subscribe here: https://theprint.in/subscribe/
Not everyone who cherish India’s 3.5 trillion $ GDP as a sign of India making a mark on world place may know the size of Blackrock an American MNC with a current Asset under Management of 9 trillion USD ( Roughly 3 times the size of India’s GDP), Jio brand name off course need no introduction as roughly 42 crore people in the country have the sim of that logo and is backed by a brilliant businessman Mukesh Ambani.
What makes this Joint Venture interesting is a little bit in past when the country’s AUM ( Asset Under Management) market has almost doubled in last 5 years and if we look data from 2013 onwards the growth is almost five times, the key reasons are multiple like growing middle class, increasing risk appetite to invest in market and digitalization wave through the ease of a smartphone and 4G enabled network.
If the same data trend can continue the same momentum for next 2 decades the growth in AUM backed by the growing middle class of the country can take this number to a 10 fold increase easily and at the same time can create a challenge to the existing players in market, to name a few like SBI, ICICI, HDFC, Kodak etc and the players who will not change themselves may end up in creating a market very similar to what we have in telecom today i.e. a duopoly where just 2 or top 3 have a chance to survive and stand out. The current fee structure of mutual fund industry can go a tactical shift as both Blackrock and Jio have deep pocket to acquire and grow the business backed on the existing financial and technology muscle they have.
This may also inspire other big names like Vanguard, Fidelity etc to make alliance with other existing industry players in the Indian market to grab a share of the market. In the end who will win will depend on multiple actions but Consumer or to say Investor has an interesting time ahead full of choice and more transparency.
This Merger again shows the brilliance of entrepreneurial spirit of the country along with strength and strategic depth of Business houses like Ambani who are on a plan to repeat the Walmart Model of Succession (A retail super chain of USA founded almost 60 years ago) which will set the tone for the wealth in family to be multiplied amicably and at the same time contribute towards the country’s growth for the next century.
A 50:50 Venture between two titans of two unique country will make each other a more strategic and reliable partner for one another and will show the art of possible in coming times.
These pieces are being published as they have been received – they have not been edited/fact-checked by ThePrint.