by Lee Jungyun
Published 14 Apr.2023 08:58(KST)
Mirae Asset Global Investments India, the only independent foreign capital asset management company in India, continues its growth story this year.
According to industry sources on the 14th, Mirae Asset Global Investments officially entered the Indian market by establishing a corporation in Mumbai in 2006 and launching its first fund in 2008. In 15 years, it has grown into the 9th largest asset manager locally. As of the end of last year, it managed assets under custody worth 21 trillion KRW and achieved a pre-tax profit of 57 billion KRW, showing performance comparable to local asset managers.
Mirae Asset Global Investments has been expanding its business areas by focusing on India's high potential and growth prospects. In November 2019, it received approval from the Securities and Exchange Board of India to transition to an asset management holding company structure, broadening its business scope beyond fund management and advisory to include NBFC (Non-Banking Financial Company) and venture capital (VC). In April last year, it raised funds online for an ETF tracking the NYSE FANG+ Index, attracting over 61 billion KRW (76,000 accounts).
In particular, Mirae Asset Global Investments India’s VC arm highly values the growth potential of the Indian startup market, with cumulative investments reaching 350 million USD across 21 deals. The VC has invested in notable startups such as Zomato, the Indian equivalent of Baedal Minjok, online grocery store Bigbasket, and e-learning platform BYJUS. It also plans to operate VC funds by raising over 60 billion KRW from WM clients.
In line with the rapid growth of the Indian WM market, Mirae Asset Global Investments established a branch in Dubai, UAE, becoming the first Korean asset manager to enter the Middle East. Dubai is geographically close to India and has an Indian population ratio of about 35%, creating strong demand for investments in Indian local funds. As of the end of last year, Mirae Asset Global Investments India managed assets worth 21 trillion KRW with 5.5 million accounts, indicating rapid growth in its WM business.
Recently, the company has shown broad activities, including investing approximately 1.3 billion INR (about 21 billion KRW) in logistics centers, one of the most prominent sectors in India. Mirae Asset Global Investments is the first foreign asset management company with a local entity in India to directly invest in the logistics business. Given that 90% of the Indian logistics market is operated by small-scale logistics companies and suffers from infrastructure shortages, high growth is expected. The company plans to actively invest in logistics centers and data centers.
Mirae Asset Global Investments India has been highly recognized, winning the 'Morning Star Awards' for eight consecutive years. The Morning Star Awards is one of the most prestigious mutual fund award ceremonies in India, selecting the best fund managers annually based on criteria such as average annual returns.
A representative of Mirae Asset Global Investments India said, "The Indian entity, which entered the Indian market in 2006 with a capital of 50 billion KRW, has endured the financial crisis that forced all foreign asset managers to withdraw and has grown into a comprehensive financial company with seven affiliates. Since India's growth story is still ongoing, we will focus on creating and developing new business areas."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.