Finance, Accounting and Control Case Study

Indiabulls: The Indian Retail Brokerage Firm's Growth Strategies

OR

Abstract:
Since its inception in 2000, despite rising competition and the ongoing consolidation in the Indian brokerage industry, Indiabulls has recorded a year-on-year growth of 100%. By 2005, Indiabulls had 135 offices in 95 cities in India offering diversified financial services, ranging from stocks to real estates. Indiabulls is one of the largest brokerage firms in India with a market capitalisation of INR 2,000 crore as of mid-2005. The company aims to achieve a market capitalisation of INR 22,000 crore by 2010.

Pedagogical Objectives:

• To highlight growing importance of online share trading in India
• To discuss the strategy adopted by Indiabulls to become one of the prominent players in the Indian brokerage industry within a short span of five years.

Keywords :  Indian capital market; Indian retail brokerage firms; Regulatory reforms in Indian capital market; Initial Public Offerings (IPOs); Venture capital; Diversification strategies of Indiabulls; Retail finance and asset management; Foreign institutional investors (FIIs); Indiabulls’ direct and indirect channels of business; Growth Strategies Case Study; Financial product distribution; Indiabulls’ centralised back office operations; Mechanisation of operations at Indiabulls; On-line share trading at Indiabulls; Risk management system; Stock market scams in India