Kotak Wealth and CRISIL Research launch 'Top of the Pyramid'
The first India-specific report on Ultra HNIs Insights into the earnings, investment and spending patterns of India's Ultra HNIs.
- (1888PressRelease) June 08, 2011 - Mumbai -
Key Findings:
· Number of UHNHs to more than triple over the next 5 years to 219,000
· Total net worth of Indian UHNHs to grow fivefold to Rs. 235 trillion by 2015-16
· Potential market size of luxury jewellery estimated at Rs. 229 billion
· Potential size of the luxury car market estimated at Rs. 140-150 billion
· UHNIs likely to increase exposure to alternate assets and diversify investment portfolio
Kotak Wealth Management, pioneer and leader in the wealth management industry in India and CRISIL Research, India's largest independent and integrated research house, launched the 'Top of the Pyramid' report in Mumbai today. This unique report analyses the earnings, investment and spending patterns of Ultra High Net Worth Individuals (UHNIs) in India.
In this report, Kotak Wealth and CRISIL Research have defined an Ultra High Net worth Household (UHNH) as one having a minimum net worth of Rs. 250 million (as of FY 2010-11). The number of UHNHs is expected to triple to 219,000 and their net worth is expected to grow fivefold to Rs. 235 trillion by FY 2015-16.
The study identifies three distinct profiles of UHNIs in India - the inheritor, the self-made and the professional. It draws a clear differentiation between these three profiles in their approach to investing and spending, and perpetuation of wealth and lifestyle. It points out that UHNIs display greater risk aversion in personal investments. While real estate has been the most preferred avenue, alternate asset classes are now likely to gain popularity.
At the launch of the report, C. Jayaram, Executive Director, Kotak Mahindra Bank Limited said,"We are delighted to launch the first of its kind report of the Indian ultra high net worth individual fraternity today. The Top of the Pyramid report has been developed jointly with CRISIL Research. The cornerstone of our Wealth Management business rests on providing superior products and services to our clients. In a bid to diversify their portfolio, largely comprising traditional assets like realty and equity, UHNIs have begun investing in emerging, alternate assets such as private equity, hedge funds, structured products and derivatives. However, the growing interest in alternate assets is not backed by an adequate understanding of these asset classes, thus requiring UHNIs to seek professional advice. The report has been developed to add further value for our clients. This endeavour is testimony to our commitment to offer our clients the highest quality of wealth management products and services in India."
The report highlights the relationship between increased earning and growth in the luxury market in India. It provides insights into differences in patterns of spending and investing, based on the UHNI profile and geography. "The fivefold increase in net worth and increasing propensity to spend could together have an explosive impact on the luxury goods market. Our research estimates the potential market size for the luxury jewellery segment at Rs. 229 billion and for the luxury car segment at Rs. 140-150 billion. The full realisation of this potential is possible provided luxury brands are able to develop greater points of access, offer wider range and customisation of products to suit Indian customers' preferences. The Top of the Pyramid report will serve as a useful guide for investment managers and luxury brand marketers to develop more innovative marketing strategies." said Ms. Roopa Kudva, Managing Director and Chief Executive Officer of CRISIL Limited.
'Top of the Pyramid' is based on in-depth interviews with senior personnel at major global luxury brands, art gallery owners and product dealers, and an extensive market research with ultra HNIs across eight cities. It is available free of cost, and can be downloaded from the Kotak and CRISIL websites.
About Kotak Mahindra Group
Kotak Mahindra Group is one of India's leading banking and financial services conglomerates, offering a wide range of financial services that encompass every sphere of life. From commercial banking, to car finance, to stock broking, to asset management, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporates. The Group has a net worth of Rs. 10,963 crore and has a distribution network through branches and franchisees across the country and offices in New York, California, London, Dubai, Mauritius, Abu Dhabi, Bahrain and Singapore, servicing close to 8 million customer accounts. For further information on
Kotak Mahindra Group, please visit www.kotak.com
About Kotak Wealth Management
Established in 1998, Kotak Wealth Management is one of the oldest, the most respected and the largest wealth management teams in India offering widest range of wealth management solutions to high net worth individuals. Our clientele ranges from entrepreneurs to business families, as well as employed professionals. Kotak Wealth provides financial advice and manages wealth for over 30% of India's top 100 families*. Kotak Wealth recently won the 'Best Private Banking Services Overall- India along with 17 other categories including 'Best Family Office Services', 'Best Advisory Services' in the Euromoney's Private Banking and Wealth Management Poll - 2011. Further, Kotak Wealth has also won the 'FinanceAsia Country Awards -2010' in the Best Private Bank category.
www.wealthmanagement.kotak.com
*Forbes India Rich List - 2011
About CRISIL Limited
CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India's leading ratings agency. We are also the foremost provider of high-end research to the world's largest banks and leading corporations. www.crisil.com
About CRISIL Research
CRISIL Research is the country's largest independent and integrated research house with strong domain expertise on Indian economy, industries and capital markets. We leverage our unique research platform and capabilities to deliver superior perspectives and insights to over 1200 domestic and global clients, through a range of research reports, analytical tools, subscription products and customised solutions.
www.crisilresearch.com
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