Hinduja Group

2016-07-19

The saga of the Hinduja Group started in Sind, the cradle of the Indus Valley Civilisation, where more than 5,000 years ago, the human race learnt its first lessons in organised business and banking.


Parmanand Deepchand Hinduja, a young entrepreneur from the fabled town of Shikarpur, realised early in life that business was all about spotting opportunities, and seizing them wherever they surfaced.


He travelled to Mumbai in 1914, and quickly learnt the ropes of business. The business journey, which began in Sind, entered the international arena with an office in Iran (the first outside India) in 1919.


Merchant Banking and Trade were the twin pillars of the business and the Group remained headquartered in Iran, until 1979 when it moved to Europe. 


The Group has expanded and diversified its businesses, with significant social and charitable contributions, under the present leadership of Chairman, Srichand, ably supported by his brothers, Gopichand, Prakash and Ashok.


Today, the Hinduja Group has become one of the largest diversified groups in the world spanning all the continents. The Group employs over 70,000 people and has offices in many key cities of the world and all the major cities in India.


The Hinduja Family has always adapted to free-market reforms moving quickly in new markets that have opened, and capitalising on new economy opportunities. As a result, the Hinduja Group has now strategically positioned itself to contribute to old economy sectors such as Banking & Finance, Transport, Energy (Oil & Power) as well as the new economy of Technology, Media and Telecom.


The Business Philosophy


"My dharma (duty) is to work, so that I can give."

Parmanand Deepchand Hinduja (1901-1971) 

Founder, Hinduja Group


Firm believers in traditional family values, the Hindujas have all along striven to inculcate the family concept in their business enterprises.

Every member of the Group is encouraged to practice the Vedic principles of work: 'Service with devotion' and 'willingness to see fulfilment of one's self-interest in the active promotion of the interest of the collective'.


Mutual trust, respect, cohesion and co-operation are emphasised as key organisational guidelines. At the same time, sound modern management practices are given primacy within individual companies of the Group and also at the corporate level.


Professionals are allocated independent charge of diversified activities. There is a high premium on healthy internal competition, incentives to executives and employees for outperforming one another, and appreciation of good performance.


The Group has, throughout its history, demonstrated a strong commitment to creating better understanding between the people and the governments of the world. Building amity and co-operation between their host country and their mother country, India, has been an article of faith.

The Hinduja Group builds strong relationships with its customers to fulfil their investment-banking and asset-management needs.


Such relationships are based on:


Trust - which assures customers that their assets are safe. 

Discretion - which ensures complete confidentiality 

Reliability - through prompt and effective responses to customer needs

Performance - by consistently delivering the expected commercial results


The Hinduja Group operates an independent global investment banking capability. The Investment Banking division is broad based and has dedicated professional teams located in London, New York, Geneva and Mumbai.


This Division has developed first hand commercial expertise in several key industry sectors around the world through Hinduja Group’s own businesses coupled with an excellent understanding of global capital markets.


We use our expertise and know-how to advise clients on strategies for growth, how to structure and execute mergers, acquisitions and underwriting capital requirements. For corporate clients looking to raise capital, we provide expert advice on the issuance of all forms of equity, bonds and other debt.


Through our brokers we have built strong relationships with corporations, institutional investors and individuals and we are therefore able to serve their brokerage requirements and at the same time provide them with accurate and up-to-date research.


With respect to institutional and individual investors, our performance in managing their assets is crucial to our success. The Asset Management business employs an 'open architecture' system to deliver the full range of wealth management solutions for our clients. This enables us to run a customised investment platform that has the capability to offer asset allocation, risk analysis and selection of the best performing funds available, all backed up with personalised and quality service.


Overall, what distinguishes the Hinduja Group’s investment banking activities are:


Quality of advice

A clear understanding of clients’ needs

Access to many capital sources

Timely and efficient execution

Although the Investment Banking division acts from time to time for certain group companies on an arms-length basis, its activities are focused on independent transactions with a broad range of regional and international clients.


Our Activities: 

Project Advisory Services


In its long history of international trading, marketing and specialist industry activities, the Hinduja Group has acquired a comprehensive understanding of the processes involved in bringing projects to a successful conclusion.


The Group itself has committed long-term investments in several projects in developing countries and uses its expertise to assist other project investors. This expertise encompasses power generation, airport construction and transportation including air cargo transportation, development of roads, airports and associated infrastructures.


The Group provides Project Advisory Services to its clients through AMAS-IPS and Ashok Leyland Project Services.


The Infrastructure Project Development initiatives comprise the following:


Providing specialised project services from concept to commissioning – from pre-investment feasibility studies and appraisals to development of joint ventures and company formation.

Providing professional services to international companies interested in projects in India, in areas such as power, telecommunications and surface transport infrastructure.

Providing specialised inputs, on request, to assist in the profitable and economic implementation of projects in close co-operation with promoters and designated shareholders.

Assisting investment entities of the group in successfully identifying and implementing projects in India

Corporate Advisory


The Group can deliver a variety of advisory services including all types of restructuring, joint ventures, acquisitions and mergers and asset sales. In particular, it offers international companies a highly professional conduit for transacting business in India. The Investment Banking Division can assist in forming joint ventures, identifying suitable partners as well as providing the full range of establishment services needed for conducting business in India. The Group also acts for businesses seeking investments/acquisitions in other parts of the world. This is further backed up by our ability to arrange the required capital.


We have very strong sector skills in automotive, engineering, healthcare, telecom, media, energy, business process outsourcing, financial services, real estate and infrastructure areas.


Capital Markets


The Group has the capability to underwrite debt and equity transactions on a global basis. It maintains excellent relationships with key institutional investors and banks, and has played an active role in many regional and international IPO’s, GDR’s, ADR’s and private placements. The Capital Markets division can act for government agencies, corporate and public / private partnerships. In particular, the Group has an exemplary track record in project development, and is well positioned to act for infrastructure and energy counterparties in arranging all levels of required capital.


Private Equity and Direct Investment


Our Investment Banking division is constantly alert to unquoted direct investments around the world. It maintains a preference for those industries where it already has operating expertise. The Group is currently developing a series of private equity funds targeted at particular sectors in India, Middle East and the Asia Pacific region. These funds will be managed through this division and provide the Group with a stand-alone capability to invest directly in emerging market businesses and select infrastructure projects.


Real Estate


The Group has had a long and successful track record of real estate investment, as principal investor and as a provider of support services to its clients. It has invested in residential and commercial real estate in North America, Europe, Middle East and India and has resident expertise in each of these locations.


We also possess the capability to advise on and structure financing packages for projects in the travel, tourism and leisure sector. The Group is organising a real estate fund for foreign and domestic investors that will develop large scale mixed-use sites in the major metro centres of India. 


Asset Management Services


For private customers, the Group’s platform of products and services provides access to a wide range of investing and wealth building tools with the personal guidance of financial experts.


The Group offers a full range of private banking financial products and services to high net-worth individuals. It also provides professional asset management services for small and medium sized companies.


The Asset Appreciation Plan of the Group provides medium to long-term capital growth, combined with reduced volatility through diversification using the best available funds and fund managers. The Plan allows the investor to select his portfolio mix and includes a power of attorney authorising the Group’s Bank to make the investments.


The Group believes that every client is unique with specific needs and differing attitudes towards acceptable levels of risk. It responds to these individual needs by devising financial strategies depending on the decisions of its client. In order to meet these strategies and objectives, the best suitable managers are selected.

Trading and Merchandising


The diversified, multi-billion dollar Hinduja Group had its origins in the trading activities started by its Founder Parmanand Deepchand Hinduja in 1919. He was a visionary who anticipated opportunities and changes, years before they happened. 


His legendary flair for business has been passed on to his second and third generations, who have extended the Group's activities across all continents. Today, the Hinduja Group trades internationally in practically all products and commodities except tobacco, meat and alcohol. The Group markets specialist technical services to several infrastructure sectors.


To simplify the complexities of international trade transactions, most clients require a partner to provide a broad solution to all its trade needs while being sensitive to the unique characteristics of each transaction. The Hinduja Group plays the role of such a partner and provides 'tailor-made' solutions to its clients. 


Backed by its worldwide network of offices and professionals, the Group has the infrastructure and expertise to structure and execute any type of trade transaction. Our professionals bring to this task a combination of pertinent information about local conditions, along with the knowledge and experience of how the global community does business.


Supported by the expertise of its trading division, the Group has the agility to convert the challenges of the fast-moving global business environment into opportunity. 


Financial Service


In the world of trade, financial services are becoming as important as conventional services. The Hinduja Group offers alternative forms of financing to suppliers and customers. In addition to handling standard trade practices such as documentary credit operations, cash management, disposition of financial means and hedging against fluctuations in exchange and interest rates, the Group facilitates new methods of financing such as export financing, management of trust accounts and project financing based on counter-trade in co-operation with international banks. These financing models are becoming increasingly important and complement traditional trading functions.


Counter-trade 


Counter-trade is inherently an ad-hoc activity which varies according to local regulations and requirements, the nature of the goods to be exported and the current priorities of the parties involved. Counter-trade consists of transactions, which have a basic linkage, between exports and imports of goods or services in addition to, or in place of, financial settlements. Counter-trade can be used as an effective international business tool.


With many years of experience in this activity, the Group can assist large multinationals in fulfilling their counter-trade obligations.


The Group uses counter-trade aggressively as a marketing tool and regards offset and counter-purchase as an opportunity (to make money through trading) rather than as an inconvenience.


Switch Trading 


Imbalances in long-term bilateral trading agreements sometimes lead to the accumulation of unclear credit surpluses in one or other country. Third countries can sometimes tap these surpluses for enhancing their exports. Such transactions are known as ‘switch' or ‘swap' deals. 

The Group has the expertise and experience to structure such complex switch and swap deals.


Trade Finance


The Group is extensively involved in trade finance, providing finances to buyers and sellers as the case

maybe. We are not only into providing financing solutions, but also into managing risks of political, credit or performance nature. 


Buy-back


The Hinduja Group believes that trading in modern times goes well beyond the traditional activity of direct buying and selling.


Trading skills have to keep pace with the changing world of instant communications and varied requirements of customers for mutual benefit. One such method is to enter into two-way trade with the customer whereby against supply of certain goods to a customer, the customer supplies his own goods in lieu of payment for his purchase.


Debt Clearing


The Group assists countries in clearing outstanding State debts. The Group acts as a principal on both sides – buying the debt, buying goods from debtor countries, selling these in the international market and finally paying off the debt to the creditor countries. In the process the Group has helped to mediate, catalyse and consolidate bilateral relations between countries.

Asia

India  

Hinduja Group Ltd.

Hinduja House

171, Dr. Annie Besant Road

Worli, Mumbai – 400018

Maharashtra, India 

Tel: +91-22-24960707


B-23, Safdarjung Enclave

New Delhi – 1100029

Tel: +91-11-26107904 Ashok Leyland Ltd.

No. 1, Sardar Patel Road

Guindy, Chennai – 600032

Tamil Nadu, India

Tel: +91-44-22206000

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