NongHyup Financial, Equity Investment in Indian Capital Firm... Accelerating India Strategy

25% Stake Investment in Indian Tractor Finance Specialist Kisan

[Asia Economy Reporter Kwon Haeyoung] NH Nonghyup Financial Group is entering the Indian financial market through a joint venture with the Indian Farmers Fertiliser Cooperative Limited (IFFCO), the world's largest fertilizer cooperative. Leveraging its strengths in agricultural finance in India, the world's largest tractor market with an annual growth rate of 8%, the group plans to secure stable business volume and expand its overseas market.

On the 14th, Kim Kwangsoo, Chairman of Nonghyup Financial Group, visited the IFFCO headquarters in New Delhi, India, to hold an investment signing ceremony between Nonghyup Financial and a credit finance subsidiary under IFFCO. Nonghyup Capital, a subsidiary of Nonghyup Financial, secured approximately 25% of the shares in IFFCO-Kisan Finance, a tractor finance specialist company under IFFCO, becoming the second-largest shareholder and participating in local agricultural machinery purchase and secured loan businesses.

This joint venture by Nonghyup Capital marks Nonghyup Financial's first step in actively entering the Indian financial market. The entry into India through a joint venture is also the first among Korean financial companies. Through this joint venture, Nonghyup Capital will be able to secure IFFCO's extensive sales channels and stable business volume, with about 36,000 agriculture-related cooperatives as members. Nonghyup Capital will initially participate in Kisan's local agricultural machinery purchase and secured loan business and seek to expand its business areas in the future.

Furthermore, Nonghyup Financial plans to expand synergy projects among affiliates with the local branch of Nonghyup Bank, which is currently being established in India, and to continuously expand overseas business beyond India to the South Asia region through agriculture-finance linked projects.

Chairman Kim Kwangsoo stated, "Considering India's high economic growth rate, the steady growth prospects of related markets due to increased tractor demand, and the competitive shareholder network including IFFCO, the growth outlook for Kisan is bright." He added, "As a strategic investor, Nonghyup Financial will spare no effort in supporting Kisan's business expansion and growth through management cooperation such as appointing executives and dispatching personnel from Nonghyup Capital, as well as multifaceted support at the group level."

Meanwhile, as part of Nonghyup Financial's differentiated global strategy, it has been steadily promoting cooperation and joint ventures with local cooperatives or agricultural companies. Through this financial joint venture with India's IFFCO, Nonghyup Financial has secured a stable business network in three Asian regions, including China's Gongso Group and Myanmar's HTOO Group.

This content was produced with the assistance of AI translation services.