The Principal Financial Group announced Wednesday that its subsidiary, Principal Financial Group Ltd., has reached an agreement with the Industrial Development Bank of India (IDBI) to purchase IDBIs 50% stake in IDBI-Principal Asset Management Co. Ltd. for an estimated $20 million. Through this agreement, Principal will now have a 100% stake in IDBI..
"We are extremely pleased by the success weve found in the Indian market. Bringing our global expertise and technology into one of the worlds largest and fastest-growing population centers in the financial services business has greatly benefited us, as well as our customers," said Rex Auyeung, senior vice president, Principal International. "We are looking forward to continuing to serve India, with a new array of highly attractive financial products and services."
The Principal Financial Group has been involved with the Indian market since 2000, when it established its joint venture agreement with IDBI. As of December 2002, the company managed $471 million in assets within India.
Its products are currently marketed through banks, financial distributors and brokers. The Principal currently manages 12 funds, which include six income funds, two balanced funds and one cash management fund.
"Over the past few years, The Principal has gained recognition and brand awareness in India as a serious and large retirement services player," said Sanjay Sachdev, managing director, The Principal. "We appreciate the contributions IDBI has brought to us in joining the Indian investment marketplace. Our partnership has been valuable."