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FPD entails a distribution company having a tie-up with a financial product company (i.e. principal) to |
distribute its products within a specified geography against payment of commission and other fees.
Through congruence with PGFI’s current strengths of a strong and reliable brand, spread across 151 cities in 25 states and 4 UT (primarily in district headquarters, which gives an access to the emerging market in the hinterland), connectivity across all 158 branches, widespread sales force and huge customer database, Financial Product Distribution emerged as a very lucrative option.
This would also help PGFI to raise its capability bar to build competences and resources that will help it to re-build its own brand in the fund-based financial sector businesses in the future (possibly with the help of a strategic partner). |
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PGFI continues to remain primarily a single-line company, the RNBC business, and while options for new business ventures were being considered, |
company evaluated both fund-based and fee-based business.
In today’s competitive market, all companies would like to focus only on core functions and partner with other firms for those activities where it has limited competence. A similar situation is noticed in the financial market, where financial players too have adopted a similar model. While the principals focus on activities like product design and yield management, they have partnered with companies strong in the area of distribution (through network of offices and sales channels) for distributing their products. These products range from life and non-life insurance, mutual funds, loan products, credit cards and deposit products (started with the issuance of the business correspondent circular). |
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Despite of the wide range of products in RNBC category, strict regulation seems to be limiting to the scope of |
future growth in this area.
The attributes that PGFI has built over the years, a strong and reliable brand, huge customer base, a spread over 130 cities in 25 states and 4 UTs, are extremely conducive to the business of distribution of financial products.
After foraying into the new domain of financial product distribution, within the period ended
March 2007, PDL notched up business volumes worth more than Rs
29 crores. It has commenced distribution of general insurance products . Going forward plans are afoot to spread its wings in distribution
of mutual fund products , loan products,
credit cards as well as other financial services so that any consumer whenever he thinks of money, thinks of Peerless Smart Money. |
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Peerless Developers Ltd.(PDL), a wholly owned subsidiary of PGFI, recently entered into an agreement with Max New York Life Insurance Company Ltd. (MNYL)- a new generation private sector conglomerate in life insurance business in India. As per the agreement, PDL has been taken over the corporate agency of MNYL.
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In the first phase, PDL has decided to conduct business through |
its own SPs in the East and the North- Eastern regions and subsequently, in the Northern part of the country and other places, using the infrastructure and network of its parent company, PGFI. Necessary training on the products and life insurance business has been imparted to PDL executives at the branch level.
This strategic alliance was formally announced at The Peerless Inn, Kolkata on July 5th, 2006, attended by a large number of employees from PDL, PGFI and MNYL.
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A new
chapter in Financial Product Distribution business
opened with the signing |
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of a
business agreement between Peerless Developers Limited -
a wholly-owned subsidiary of the PGFI and
IFFCO TOKIO General Insurance Company Limited on
June 15, 2007 at The Park, Kolkata
Peerless distributing the following ITGI Policies
Trade Suvidha
gives complete protection to business against a wide
range of risks like fire and other perils like riots,
strike, earthquake and other natural disasters. Burglary
and other perils are covered as well.
Home Suvidha
gives complete protection to your home against a wide
range of risks and perils like riots, strike, earthquake
and other natural disasters. Burglary and other perils
are covered as well.
Individual Medishield
is a complete protection plan for the medical treatment
of your entire family while at the same time ensuring
that in case of any unfortunate accident, you and your
family get hassle free medical care. It allows you to
protect yourself against today’s spiraling medical
costs.
Motor insurance
provides coverage for both private car below 5 years and
two wheeler below 5 years. The first one covers loss of
or damage to privately owned vehicle against the risk of
accident, fire, theft, floods, earthquake, riot, strike
etc. The policy also gives coverage for liability
arising out of death, injury to third party and/or third
property damage.
The two wheeler insurance policy also provides coverage
for loss or damage to your two wheeler like motor
cycle/scooter against the risk of accident, fire, theft,
floods, earthquake, riot, strike etc. including coverage
for your liability arising out of death, injury to third
party and/or third property damage. |
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