Muthoot

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Muthoot
Type Public company
Traded as BSE533398
BSE SENSEX Constituent
Industry Finance
Hospitality
Broadcast Media
Healthcare
Education
Renewable Energy
Real Estate
Founded 1887 by Muthoot Ninan Mathai
Headquarters Kochi, India
Key people M G George Muthoot (Chairman)
George Alexander Muthoot (MD)
George Jacob Muthoot (Joint Managing Director)
George Thomas Muthoot (Joint Managing Director))
Employees 25,000 (2012)[1]
Website [3]

The Muthoot Group is an 127-year-old business house based in India.[2] It has interests in Financial Services, Information Technology, Media, Healthcare, Education, Power Generation, Infrastructure, Plantations, Precious metal, Tourism, and Hospitality. The Muthoot Group operates in 23 states in India, and has presence in USA, UK and UAE.[3] It is wholly owned and managed by the Muthoot Family.

The Group takes its name from the Muthoot Family based in Kerala. The Company was set up by Muthoot Ninan Mathai in 1887 at Kozhencherry, a small town in the erstwhile Kingdom of Travancore (Kerala). It was then later taken over by his son M George Muthoot who incorporated the Finance division of the group which was until then primarily involved in wholesale of grains and timber. The company is now managed by the third and fourth generation of its family members.

The group is headquartered in Kochi, Kerala. The Group made over $4 Billion in revenues during 2011-2012.

Business Divisions[edit]

Finance
Muthoot Finance Ltd: Established in the year 1939 when M. George Muthoot ventured into financial services through a partnership firm under the name of Muthoot M. George & Brothers (MMG). MMG was a Chit Fund based out of Kozhencherry. In 1971, the firm was renamed as Muthoot Bankers, and had begun to finance loans using gold jewellery as collateral. . In 2001, the company was renamed once again and came to be known as Muthoot Finance Ltd.. Muthoot Finance falls under the category of Systematically Important Non-banking financial company(NBFC) of the RBI guidelines.

The company has more than 4,050 branches spread across 23 states of the country Muthoot Finance, according to the IMaCS Research & Analytics Industry Reports [Gold Loans Market in India, 2009 and the 2010 update to the IMaCS Industry Report 2009], is the largest Gold Loan NBFC and has the largest network of branches for a Gold Loan NBFC in India.[4] Muthoot Finance is also the highest credit rated Gold Loan company in India, with a credit rating of AA- (CRISIL) and LAA-(ICRA) for its Long Term Debts and P1+ (CRISIL)[5] & A1+ (ICRA)[6] for its Short Term Debt Instruments.

Muthoot Finance promotes "gold power", a concept which emphasises mobilising household Gold possessions (ornaments), estimated to be more than 20000 tonnes,[7] in times of financial crunch. The services can be used by anyone from any economic section of society, with minimal paperwork and hindrances. Muthoot Finance privately placed 4% of its paid up capital to Private Equity players – Barings India and Matrix Partners India for Rs. 1.57 billion,[8] hence valuing the earlier privately held company at over $1 billion. In terms of market capitalisation, Muthoot Finance Ltd is the second largest company in Kerala, first being Federal Bank.

Information Technology
Muthoot Systems and Technologies Pvt Ltd: Operating under the brand Emsyne,[9] is the Information technology arm of the Muthoot Group, is headquartered in Cochin. The company has been operating for over the past 14 years in the IT sector. Their client list includes US companies such as ARC group, PA, Court Port LLC, SVM, JAL International. The company was established in 1993. It offers Information Technology services, Product Engineering Solutions, Business Process Outsourcing Services and Consultancy Services to local as well as Global clients. The company has recently started its operations in US with a subsidiary in Philadelphia region. Expansion into other regions of the US and The Middle East is planned.

Precious Metals
Muthoot Precious Metals Corporation: Established in May 2006, the company sells coins & bars of 999 Pure 24 Carat gold and silver throughout India. They carry out the sales of these bars and coins through more than 4000 branches of Muthoot Finance Ltd.

MPMC imports gold bullion from Switzerland and converts them into gold coins of smaller denominations so as to suit the investment requirements of people from different income groups. MPMC is one of the leading sellers of Gold Coins in retail market. Gold Coins/Bars are sold in different denominations up to 50gms and silver coins in 20, 50 & 100 gm denominations. Company offers the unique and one of its kind scheme to book gold on today's rate and pay later in flexible instalments.[10]

Most of the gold & silver coins are imprinted with the images of deities and monuments such as Goddess Lakshmi, Lord Ganesha, Lord Ayyappan, Venkateswara Swami(Balaji), Our lady of Velankanni, St. Alphonsa, St. Gregorious, Lord Sri Padmanabha, Golden Temple, Chatrapathi Shivaji, Mary Matha, St.George, etc. MPMC also launched a special Collectors Edition 8gms Gold Coin for the Muthoot Group's partnership with the Delhi Daredevils, Delhi's IPL team.[11]

Money Transfer
Muthoot Finance Ltd: Money transfer is a service provided by Muthoot Finance since 2002. As of December 2012, there are 7 inward remittances that Muthoot Finance offers Western Union, xpress Money, Instant Cash, Ez Remit, Transfast, MoneyGram, Global Money.[12]

Foreign Exchange
Muthoot Exchange Company Pvt. Ltd: The Foreign exchange division of the Muthoot Group is headquartered in Kerela. Customers can avail this service at select Muthoot Finance Ltd. Outlets across India.

Securities
Muthoot Securities Ltd: Established on 28 May 2008, Muthoot Securities Ltd. is a member of various stock exchanges namely NSE, BSE and MCX-SX.MSTL. It operates over 65 business centres in Kerala, Tamil Nadu, Andhra Pradesh and Karnataka. Its product offerings comprise financial products and services namely equity, commodity & currency trading, internet based trading, Portfolio Management Services, depository services, mutual funds, PAN services, market research etc. Company recently tied up with UTI Infrastructure Technology and Service Ltd to issue PAN card[13] through its network of branches all over India, which will now act as Muthoot PAN processing centre.[14]

Travel & Tourism
Muthoot TravelSmart: Headquartered in Kochi, Muthoot TravelSmart is the travel division of Muthoot Group. The services offered by this division include international and domestic ticketing, railway ticketing, tour, passport, emigration & visa, travel desk, travel insurance, bus ticketing and foreign exchange.

Media
Muthoot Broadcasting (P) Limited: Within the media domain, Muthoot Group operates Chennailive 104.8FM[15] that focuses on the growing demand for urban music. Established in 2006, the radio station is the leading English radio channel in Chennai.Chennai Live 104.8 is India's first talk radio FM station.

Healthcare
MGM Muthoot Medical Centre: Established in 1988, the Group operates a medical centre and specialty clinics. It also provides a number of health services round the clock. Health check-up schemes, cashless treatments and community health programmes also fall under the healthcare spectrum of Muthoot Group. The Group also operates several Diagnostic & Scan centers throughout Kerala and 2 multi-speciality hospitals in Kozhencherry and Pathanamthitta.

Hotels and Hospitality
Muthoot Leisure & Hospitality Services (P) Limited: Established in 1978, The Group runs 2 luxury resorts viz. Pampa Villa and Cardamom County, as well as 12 houseboats in Kerala, which operate under the brand 'Muthoot River Escapes'.[16][17] Muthoot Hotels runs a chain of South Indian coffee outlets as well. Muthoot River Escapes has been given a five star rating by Trip Advisor. All of these combined are referred to as Raxa Collective.

Muthoot Hotels is in the process of constructing a 5 star luxury hotel in the city of Kochi and 5 star beach resort in Mararikulam.[18]

Housing & infrastructure
Muthoot Housing & Infrastructure: Formerly known as Muthoot Builders, the division was established in the year 1990. The division is managed by Sri George Jacob Muthoot from Trivendrum. The division has a number of residential as well as commercial projects in South India.[19]

Education
St George's School: The Muthoot Group runs St. George’s School, a non-profit initiative, located at the Alaknanda colony in New Delhi. It was founded in 1930. As of December 2012, the school has a staff strength of 130 teachers and student strength over 3000.

Muthoot College of Allied Health Sciences: The institute was established in 2004 and offers major health courses like MLT, MIT etc.[20]

Muthoot M George Institute of Science & Technology: Situated in Kochi, the institute offers courses in all regular streams of engineering.

The education division of The Muthoot Group is prominent in the education industry due to the many awards to its credit. The Gem of India (Gold Medal), Rajiv Gandhi Excellence Award, and Golden Peacock National Training Award are just a few such awards.[21][22]

Vehicle and Asset Financing
Muthoot Vehicle & Asset Finance Ltd.: Incorporated in 1992 and renamed as Muthoot Vehicle & Asset Finance Ltd. in 2008, this division of the Muthoot Group is the sole company of its kind in Kerala. The RBI certification classifies it as a Deposit taking Asset Finance Company.[23]

Power Generation
Muthoot Alternate Energy Resources: Established in 2006 Muthoot power generation division (which comes under Muthoot Finance Ltd.) runs 3, 1.25 MW capacity Suzlon Make Wind Electric Generators at Devarkulam site in Tirunelveli District, Tamil Nadu. The WEGs generate 8 million unit of power annually which is pumped into the Southern grid.[24]

Wealth Management Services
This division of the Group is associated with an array of insurance solutions ranging from life insurance to medical, ULIPs, etc. It was established in 2002. All operations are now run under the name of Muthoot Insurance Brokers Pvt. Ltd.[25]

Plantations and Estates
The Muthoot Group operates this division on a large scale. Established in 1939, The plantations grow cardamom, tea, coconut and rubber. The division also undertakes a number of eco-friendly initiatives.[24]

Global Operations[edit]

Muthoot Global is a part of Muthoot Group with presence in UAE, USA and UK, currently dealing in Gold Loans, Money Transfer, Travel & Tourism and eCommerce. UAE operations commenced in the year 2002, UK operations started in 2007 and USA in 2010. The Group plans to diversify its foreign operations to Singapore, Germany and other GCC countries in future.

  • Royal Exchange USA Inc
  • Muthoot Finance UK Ltd
  • Muthoot Global Money Transfers Pvt Ltd
  • Muthoot Marketing Services (P) Ltd
  • Muthoot Travel & Tourism LLC
  • Muthoot Exchange

Philanthropy[edit]

The Muthoot Group's corporate social responsibility efforts are directed towards proper sanitation, education, welfare of the lower income Group of the nation, health and technology and environmental awareness and conservation. The Muthoot Group's Charitable actions/events are all conducted by the Muthoot M George Foundation.[26]

With the assistance of the Credai Clean City Movement, the foundation is associated with the concept of E-toilets,[27] which was a public sanitation initiative. Additionally, it holds regular agricultural seminars by the name of "Ente Adukkalathottum" or "My Kitchen Garden" which educates farmers on the effects of pesticide residues in food and how to counter that for healthier living. It has also been actively involved in helping cancer patients as well as those suffering from kidney diseases by footing the medical expenses of the truly needy.

Muthoot Finance, via The Muthoot M George Foundation, in collaboration with CII's Young Indians programme,[28] runs the Kochi Chapter for “Horn Not Ok Please”; an initiative which raises awareness on the harmful effects of vehicular noise pollution. Furthermore, The Foundation has launched a Centre for Promoting/Creating Road Traffic Awareness at the office of the Asst. Commissioner of Police in Kochi to help raise awareness about road safety and the prevention of traffic accidents.

Environment research foundation[edit]

The Periyar Foundation set up by Muthoot Hotels is based in the town of Thekkady, near the Periyar National Park has undertaken several projects for the conservation of the national park including 'vasantha sena'[29] and a research study along with the National Institute of Advance Studies for the conservation of 'Nocturnal Flying Squirrels'.

See also[edit]

References[edit]

  1. ^ "Muthoot Group to hire 1,000 employees each in next 4 years- Jobs-News By Industry-News-The Economic Times". Economictimes.indiatimes.com. 17 February 2009. Retrieved 2010-03-10. 
  2. ^ "Muthoot celebrates 125th birthday". Afaqs. 28 May 2008. Retrieved 2012-02-16. 
  3. ^ [1]
  4. ^ "India's larges gold financing NBFC, Muthoot Finance Ltd to offer loans against the security of gold Exchange Traded Funds". Retrieved 16 July 2011. 
  5. ^ "CRISIL: India's leading Ratings, Research, Risk and Policy Advisory Company". crisil.com. Retrieved 2011-02-24. 
  6. ^ "ICRA". icra.com. Retrieved 2011-02-24. 
  7. ^ "Indians hoard 20k tonnes gold worth record $1.16 trn". financialexpress. Retrieved 29 November 2012. 
  8. ^ "Muthoot Finance raises 1.57 bln rupees from PE funds". Reuters. Retrieved 29 July 2010. 
  9. ^ "Innovative software solutions provider powered by The Muthoot Group". Silicon India. 
  10. ^ "Muthoot Precious Metals launches new gold scheme". Hindu Business Line. 
  11. ^ "Muthoot Group launches Delhi Daredevils gold coins". India Times. 
  12. ^ "Muthoot Group Expands Money Transfer operations in Punjab". business-standard.com. 
  13. ^ "Muthoot Securities ties up with UTI Infra". Hindu. 
  14. ^ "Muthoot PAN card processing center". The Hindu Business Line. 
  15. ^ [2]
  16. ^ "Cardamom county". hoteltravel.com. Retrieved 2010-03-10. 
  17. ^ "Muthoot River Escapes". tripadvisor.com. Retrieved 2013-01-20. 
  18. ^ "Muthoot Leisure plans two 5-star hotels". The Hindu Business Line. 9 July 2007. Retrieved 2010-03-10. 
  19. ^ "Muthoot Builders". realestatehungama.com. Retrieved 2011-04-22. 
  20. ^ "Muthoot College of Allied Health Sciences". htcampus.com. Retrieved 2012-01-13. 
  21. ^ "Gem of India Award". indiaeducationreview.com. Retrieved 2012-10-25. 
  22. ^ "Golden Peacock Award for Training Awarded to St. George's SChool". goldenpeacockawards.com. Retrieved 2012-10-25. 
  23. ^ "Muthoot Vehicle Asset Finance and Axis Bank tie up". yahoo.com. Retrieved 2012-04-19. 
  24. ^ a b "Company Profile of Muthoot Finance Ltd.". reuters.com. Retrieved 2012-04-19. 
  25. ^ "Company Profile of Muthoot Finance Ltd.". oneindia.com. Retrieved 2007-11-29. 
  26. ^ "Muthoot M George Foundation announced the launch of Muthoot M George Excellence Scholarships =Business Standard". 
  27. ^ "E-toilets opened at Ernakulam Childrens Park". IBN Live. 
  28. ^ "CII youth wing holds poster design competition". The Hindu. 
  29. ^ "All women forest patrolling team in Periyar Tiger Reserve- Women's Day". The Economic Times (Economictimes.indiatimes.com). 16 December 2007. Retrieved 2010-03-10. 

External links[edit]