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Karvy on revamp mode -- Plans to focus on Web-based operations

Our Bureau

KOLKATA, Feb. 25

THE Karvy group has proposed to revamp its operations to offer more services to clients. Its plans include launching Web initiatives, strengthening personal finance advisory and providing more focussed stock broking facilities.

According to Mr C. Parthasarathy, CMD of Karvy Consultants Ltd (the flagship), the group aims to move up the value chain in terms of meeting requirements of the financial sector. Already, it provides services to some 16 million investors, on behalf of ab out 120 companies.

Its operational model will be re-worked to provide consolidated services to individual investors, corporates, mutual funds, etc. More specifically, Karvy, which has recently started to provide large-scale IT services, proposes to focus on Web-based opera tions.

On cards is a financial services portal that will facilitate more effective investor servicing and distribution of financial products, including retail loans and deposits.

In stock broking, Karvy has proposed to increase the number of trading terminals. Its retail broking wing caters to investors on NSE, OTCEI and Hyderabad Stock Exchange.

Currently, its Web site, www.karvy.com, is an online stock trading vehicle, backed by researchers who provide information on primary and secondary markets. This will be used to build long-term relationships with investors.

Mutual funds will remain an area of focus for the group, which currently caters to 13 asset management companies (spanning 58 schemes). Its services to these AMCs cover, among other things, document management, online transaction processing, electronic i nterface with banks and reconciliation. These take care of purchase, redemption and transfer of units.

The group is also looking at distribution of risk management products in association with leading insurance companies. It has lined up a training centre for insurance agents, beginning first with its own personnel. It wants to spread a network of `Karvy Investor Points', centres that are used to mobilise resources for clients.

Opportunity for Jardine Fleming in Karvy: For Jardine Fleming, a strategic investor in Karvy, there is an opportunity to utilise a conversion provision for taking a substantial stake in Karvy Consultants Ltd.

Jardine is a 26 per cent shareholder in both Karvy Securities and Karvy Stockbroking, members respectively of Hyderabad SE and NSE.

Jardine is Karvy's client as well, courtesy the service it provides to Jardine Fleming Mutual Fund, which, however, is a relatively small entity.

Plans for medical transcription: Medical transcription would soon command a significant place in Karvy's scheme of things. The group, according to Mr Parthasarathy, has achieved a high degree of accuracy here. There is a possibility of it being hived off into a separate company in future.

Karvy also proposes to provide comprehensive call centre services. It has recently flagged off a pilot project.