CHOLAFIN

In 1978, it was being promoted by the Murugappa Group was also incorporated on 17th August at Chennai as a Public Limited Company. It also used to lead with Hire purchase and leasing services for acquiring computers, industrial equipment, and consumer durables. In 1991, it also expanded its product range by introducing automobile finance under its Credit Cars Scheme. Also, the subsidiary Companies Cholamandalam Software Ltd. was being amalgamated with the Cholamandalam Factoring Ltd. and Cholamandalam Lease and Hire Purchase Ltd. and Cholamandalam Housing Finance Ltd. discontinued from being the subsidiaries of the Company.

Soon, it also augmented its product range by introducing Gold Nest-Child Education Fixed Deposit Scheme and made an issue of the Commercial Paper to the extent of INR 12 crores that were being rated by CRISIL as P1+, which is the highest rating for the issue of Commercial Paper.

It also set up a Merchant Banking Division during the year under review that is expected to contribute vitally to the product range and profits for the future.

In 1996, it signed an MOU with Guardia Royal Exchange Insurance Group, the U.K. for risk Management services. Also, the subsidiaries of the company are Cholamadalam Factoring Ltd., Cholamandalam Securities Ltd. & Cholamandalam Hazard Management Ltd. CHML or Cholamandalam Hazard Management Limited is a Joint Venture with M/s. Hazard Management Limited of the U.K. that started its operations to provide advisory services in the industrial risk management sector.

In 1997, it entered into a joint venture with Cazenove Fund Management Limited of the U.K., Cholamandalam Cazenove AMC Limited began its first mutual fund scheme in February. Also, it has signed a Memorandum of Understanding with the Guardian Royal Exchange Insurance Group, for risk management services. Also, the maiden mutual fund was being introduced. In 1999, it also joined hands with the world's largest insurance company, the 5bn (or assets under management) Axa, S.A.-France, for entering the non-life insurance business in India. In 2000, NAIL or New Ambadi Investments Pvt Ltd also acquired 35,29,959 (or 14.9%) equity shares of the company, and now, its present holding stands at 29,45,113 (or 17.32%).

Cholamandalam Distribution Services Ltd. became a wholly-owned subsidiary of the company and effective since September 28 subscribing to a private placement of 15, 00,000. Also, it signed an MoU with HDFC Standard Life Insurance for distributing the latter's products.