Capitalise on wealth management
Aiming to develop into the largest, most trusted financial service company in India and overseas is R K Global. In an interview Ramesh Kumar Bhagchandka, CMD, R K Global shares the success story of the brand.
Neha Gohil (NG): Share with us the inception, growth and success of ‘R K Global’?
Ramesh Kumar Bhagchandka (RKB): R K Global was incorporated in the year 1995 in New Delhi with R K Global Shares & Securities Ltd (a member of NSE) as its first group company. In the initial years, we were engaged in providing steady services of access to the equity market to Bhagchandka Group of Companies and Associates. The year 2006 can be considered as a breakthrough year for us when we launched Online Trading after which we never looked back. Our motive was to expand our client base, and also provide them with all financial services under one roof because of which we diversified our scope of activities to Mutual funds distribution, IPO Distribution, NRI/PIS services, Advisory services, LAS etc with PMS and Wealth Management being added to the kitty from next year onwards.
NG: What inspired you to start R K Global? Why and when did you take the franchise route for expansion?
RKB: My father, Late Shri Lakhi Prasad Bhagchandka has been the inspiration behind the genesis of the company. Every product launched at R K Global truly reflects his ideologies of savings through the investment route.
We took the franchise route for expansion to achieve complete pan-India coverage. Even though we aspire to set up our regional office in every developed and developing city in India in the coming years, franchise has made the process a lot speedier.
NG: What is the USP of R K Global?
RKB: With the launch of our online trading platform in the year 2006, we introduced a revolutionary trading scheme called Indiatrades@Rs.999, which was the first of its kind and became our highest selling product, acquainting investors with the concept of brokerage free unlimited trading. With this product, we became the most reasonable broking company in the country.
NG: You are planning to foray in infrastructure and insurance industry. What made you to diversify your business?
RKB: We have applied for permission from IRDA for insurance clearance, which we are hopeful to get by next year. We have not entered the infrastructure space full-fledged, but these two lucrative sectors remain at the top of our task list when it comes to diversifying our business from the broad spectrum of ‘finance’. The reason is simply the untapped scope behind these businesses and the new underlying opportunities that we have identified and intend to capitalise upon. In India, less than two per cent of the population has proper insurance coverage and we anticipate around 40 per cent growth in this sector five years down the line. We are well aware that India is an infrastructure-starved nation, especially the small cities that are increasingly facing the heat of fast growing populations and need infrastructural facilities to support them. The company will also act as an agent for purchasing, selling and letting on rent land, commercial and residential buildings in the coming years.
NG: What are your future plans in terms of expansion through franchising?
RKB: Expansion through franchising has been doing well and we plan to continue growing through our various business associates. We are working towards offering them new and attractive schemes that will help our franchise towards better client acquisition and also 24*7 customer service helpdesk (Round-the-clock services) for sustenance and better client satisfaction.
NG: What are the qualities and the criterion for the selection of your prospective franchisees? How much investment do they require?
RKB: The eligibility criteria for being our business associate comprise:
- An individual/Firm/Company with good track record in the market (preferably in the finance sector) and a ready clientele.
- Minimum one-two years of experience either in service of an existing broker/sub-broker or selling of financial products
- Minimum start-up capital of Rs one lakh, entrepreneurship skills and ability to invest on infrastructure and manpower as and when required.
NG: How many franchisees do you have in India and in which cities?
RKB: We currently have more than 350 business associates in over 150 cities and 24 states across India.
NG: What are your plans for expansion in international market? Which are the main countries you are focusing?
RKB: We always had overseas expansion in mind, but we wanted to create a niche for ourselves in the domestic region before going international. It would give our company the kind of international exposure and stature that I am striving for. We would want to start off our overseas journey with countries like Singapore and Australia and after getting more acquainted, to UAE, UK and US as well. Before going there, we plan to first get our presence felt by setting up regional offices in upcoming Indian cities like Bengaluru, Hyderabad, Pune, Indore, Trivandrum, Dhanbad, Jammu and others which have growing contribution to trading turnover.
NG: How does R K Global support and train franchisees?
RKB: We offer three kinds of customer support to our valuable franchisees.
- Product support- NSE, BSE, MCX, NCDEX, MCX’SX, NSDL & NSEL
- Sales & Marketing Support- Regular research reports and market updates through SMS, E-mail and on website. Glow signboards, banners, leaflets, marketing brochures and other marketing goodies are provided by R K Global as per requirements.
- Back-Office Support- Issuing Contract notes, transaction statements and other necessary reports.
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