Nonghyup Financial expands into IndiaNonghyup Financial Group made its first foray into India through a joint venture with a local fertilizer company, the Korean financier said Wednesday.
Nonghyup Capital, a subsidiary of the finance group, acquired a 25 percent stake of Indian Farmers Fertilizer Cooperative’s (Iffco) finance subsidiary, Iffco-Kisan Finance, for 15 billion won ($13 million), becoming its second-biggest shareholder. Nonghyup Capital said it would participate in Kisan Finance’s loan business regarding purchase of agricultural machines by farmers.
A number of Korean financial firms have made inroads into the emerging India market, but this marks the first such joint venture, Nonghyup said.
“Nonghyup Capital has become available to participate in India’s tractor industry which has been growing at 8 percent per year and is one of the world’s biggest,” the financial group said. “Iffco has more than 36,000 members of agriculture-related industry associations.”
Nonghyup Financial Group also expects its bank unit, Nonghyup Bank, to open its first Indian branch soon.
“We expect to advance into not only India but also further into Southwest Asia regions as well,” the company said.
Nonghyup Financial Group now has three operation networks in Asia, including one in China in collaboration with China Co-op Group International Leasing and one in Myanmar in partnership with local HTOO Group.
BY JIN EUN-SOO [firstname.lastname@example.org]