NongHyup Financial Group will launch a joint venture (JV) with the Indian Farmers Fertilizer Cooperative (IFFCO), the world's largest fertilizer cooperative, in a bid to make inroads into India's financial market, the group said Wednesday.
NongHyup Financial Group Chairman Kim Gwang-soo, second from right, with Indian Farmers Fertilizer Cooperative (IFFCO) Chairman US Awasthi, second from left, during a share subscription agreement signing ceremony at IFFCO's headquarters in New Delhi, Tuesday.
The announcement came a day after NongHyup Financial Group Chairman Kim Gwang-soo and IFFCO Chairman US Awasthi signed a share subscription agreement at IFFCO's headquarters in New Delhi.
Under the accord, NH Capital, a subsidiary of NongHyup Financial, has acquired about 25 percent of the shares of IFFCO-Kisan Finance ― an affiliated company of IFFCO ― becoming the second-largest shareholder of the agricultural equipment-specialized finance company.
This is the first time a Korean financial firm has moved into the Indian market through a JV with a local financial company.
With the deal, NH Capital expects to get access to the cooperative's membership of some 36,000 entities.
"Considering India's high economic growth rate and solid growth in agricultural equipment markets, as well as competent shareholders' networks, Kisan Finance has a bright growth prospect," Kim said during the signing ceremony.
"As a strategic investor, NongHyup Financial Group will fully support Kisan's business expansion and growth."
Along with the establishment of a branch of its bank in India, NongHyup plans to expand its business projects, focusing on agriculture and finance in the Southwest Asian region.
By Anna J. Park