Muthoot

Muthoot

Type	Private Conglomerate
Industry	Finance Hotels & Resorts Information technology Broadcast Media Healthcare Education Energy & Power Generation Infrastructure
Founded	1887 by Muthoot Ninan Mathai
Headquarters	Kochi, India
Key people	M G George Muthoot (Chairman) George Alexander Muthoot (MD) George Jacob Muthoot (Whole-Time Director Director) George Thomas Muthoot (Whole-Time Director))
Employees	10,000 (2009) [1]
Website	muthootgroup.com

The Muthoot Group is an 124-year-old business house based in India.^[2] It has interests in Financial Services, Information Technology, Media, Healthcare, Education, Power Generation, Infrastructure, Plantations, Precious Metals and Hospitality. The Muthoot Group operates in 23 states in India, and has a customer base of over 25 million.^[3] It is wholly owned and managed by the Muthoot Family.

The Group takes its name from the Muthoot Family based in Kerala. The Company was set up by Muthoot Ninan Mathai in 1887 at Kozhencherry, a small town in the erstwhile Kingdom of Travancore (Kerala). It was then later taken over by his son M George Muthoot who incorporated the Finance division of the group which was until then primarily involved in wholesale of grains and timber. The company is now managed by the third and fourth generation of its family members.

The group is headquartered in Kochi, Kerala

Finance

The origins of Muthoot Finance can be traced back to 1939 when [M.George Muthoot] ventured into financial services through a partnership firm under the name of Muthoot M. George & Brothers (MMG). MMG was a Chit Fund based out of Kozhencherry. In 1971, the firm was renamed as Muthoot Bankers, and had begun to finance loans using gold jewellery as collateral. The operations of Muthoot Bankers was then renamed and incorporated as Muthoot Finance in 2001. Muthoot Finance falls under the category of Systematically Important Non Banking Financial Company (NBFCs) of the RBI guidelines. The company has more than 3,510 branches spread across 23 states of the country and is the largest gold loan company in India.^[1]. Muthoot Finance, according to the IMaCS Research & Analytics Industry Reports [Gold Loans Market in India, 2009 (“IMaCS Industry Report 2009”) and the 2010 update to the IMaCS IndustryReport 2009 (“IMaCS Industry Report (2010 Update)”)], is the largest Gold Loan NBFC and has the largest network of branches for a Gold Loan NBFC in India.^[4]. Muthoot Finance is also the highest credit rated Gold Loan company in India, with a credit rating of AA- (CRISIL) and LAA-(ICRA) for its Long Term Debts and P1+ (CRISIL) ^[5] & A1+ (ICRA) ^[6] for its Short Term Debt Instruments.

‘Muthoot Gold Power’ is the lifestyle product of Muthoot Finance aimed at mobilizing the Household gold in India which is estimated to be more than 15000 tonnes. Muthoot Finance according to its company website has "the largest gold loan portfolio in the country". Muthoot also provides various financial services such as Insurance distribution, Wealth Management, Foreign Exchange, Money Transfer and Vehicle & Asset Finance. Muthoot Finance was selected as one of the Top 10 Finance companies to work for in India by Naukri.com^[7] Muthoot Finance privately placed 4% of its paid up capital to Private Equity players - Barings India and Matrix Partners India for Rs.1.57 billion, hence valuing the earlier privately held company at over $1 billion.^[8]

In terms of market capitalisation, Muthoot Finance is the second largest company in Kerala, first being Federal Bank.

Information technology

Emsyne, the information technology wing of the group develops products for the service, education and healthcare industry. Emsyne offers on site and offshore services, whether project-based outsourcing / assignments, or based on time and materials. The Core Products of Emsyne are Edge - Educational Institutions Management System Finex - Innovative Banking Automation System

Securities

Media

Chennai Live 104.8 is India's first talk radio FM station. The station would be focusing on knowledge centric and local content and will be targeting the information and entertainment needs of Chennai's intelligent community.^[9]

Healthcare

The Group operates several Diagnostic & Scan centers throughout Kerala and 2 multi-specialty hospitals in Kozhencherry and Pathanamthitta.^{[citation needed]}

Hotels & hospitality

Muthoot Hotels operates a 4 star resort in Thekkady (Kerala)^[10] and also operates 12 houseboats in the backwaters of Kerala under the brand Muthoot River Escapes.^[11]
Kaapi Club is a chain of South Indian coffee outlets managed by Muthoot Hotels.^[12] Muthoot Hotels is in the process of constructing a 5 star luxury hotel in the city of Kochi and 5 star beach resort in Mararikulam.^[13]

Housing & infrastructure

The projects of Muthoot Builders are primarily situated in central and south Kerala, Muthoot has a track record of more than 30 completed projects including commercial and residential spaces.^[14]

Other divisions

Muthoot has interests in Power Generation through windmill farms in the state of Tamil Nadu. The group also manages a school in New Delhi^[15] and 2 Nursing Colleges in Kerala. In the year 2008 the group re-entered the plantation business, the group has acquired 1000 acres of land in Sawantvadi, Maharashtra as a pilot planting of rubber.

Philanthropy

Muthoot M George Charity Foundation Set up in memory of the Late M. George Muthoot, the Foundation has been extending financial aid for its employees as part of the Staff Welfare measures. Every branch of The Muthoot Group is actively involved in Community Development and Social Welfare. The Muthoot Foundation frequently grants medical and financial aid to deserving individuals through its welfare programs. Community support is a corporate responsibility. The Muthoot Group maintains its position as a valued and responsible corporate citizen by enhancing the quality of life in the communities where they do business. It is very important for a corporate to support the community in which it operates. The Muthoot M. George Charitable Foundation is approached by numerous organizations and individuals requesting financial and medical assistance.
Muthoot Medical Centers at Kozhencherry and Pathanamthitta are super specialty hospitals set up in the rural areas of Kozhencherry and Pathanamthitta. They are both organizations established in 1989.

Environment research foundation

The Periyar Foundation set up by Muthoot Hotels is based in the town of Thekkady, near the Periyar National Park has undertaken several projects for the conservation of the national park including 'vasantha sena' ^[16] and a research study along with the National Institute of Advance Studies for the conservation of 'Nocturnal Flying Squirrels'.

See also

• Muthoot Family
• M George Muthoot
• M G George Muthoot
• George Alexander Muthoot

References

1. ^ ^{a b} "Muthoot Group to hire 3,000 employees each in next 4 years- Jobs-News By Industry-News-The Economic Times". Economictimes.indiatimes.com. 2009-02-17. http://economictimes.indiatimes.com/News/News_By_Industry/Jobs/Muthoot_Group_to_hire_3000_employees_each_in_next_4_years/articleshow/4145706.cms. Retrieved 2010-03-10. 
2. ^ "Muthoot Securities to start broking services from today". The Hindu Business Line. 2008-05-28. http://www.thehindubusinessline.com/2008/05/28/stories/2008052850702100.htm. Retrieved 2010-03-10. 
3. ^ [1]^{[dead link]}
4. ^ "Moneycontrol - India's No.1 Financial Portal". moneycontrol.com. http://www.moneycontrol.com/news_html_files/pdffiles/oct2010/muthhoot.pdf. Retrieved 2010-10-27. 
5. ^ "CRISIL: India's leading Ratings, Research, Risk and Policy Advisory Company". crisil.com. http://www.crisil.com/Ratings/RatingList/RatingDocs/muthoot-finance_23feb11.htm. Retrieved 2011-02-24. 
6. ^ "ICRA". icra.com. http://icra.in/Files/Reports/Rationale/Muthoot%20Finance%20-R-1182011.pdf. Retrieved 2011-02-24. 
7. ^ "Search Jobs in Delhi, Mumbai, Bangalore - Career - India". Naukri.com. http://www.naukri.com. Retrieved 2010-03-10. 
8. ^ The Times Of India. http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/finance/Muthoot-Finance-sells-4-raises-Rs-157-cr/articleshow/6234854.cms. 
9. ^ [2]
10. ^ "Muthoot Hotels". Cardamomcounty.com. http://www.cardamomcounty.com/. Retrieved 2010-03-10. 
11. ^ [3]
12. ^ "Muthoot Hotels". Kaapiclub.com. http://www.kaapiclub.com/. Retrieved 2010-03-10. 
13. ^ "Muthoot Leisure plans two 5-star hotels". The Hindu Business Line. 2007-07-09. http://www.thehindubusinessline.com/2007/07/09/stories/2007070951430300.htm. Retrieved 2010-03-10. 
14. ^ "Welcome to Muthoot Builders". Muthootbuilders.com. http://www.muthootbuilders.com. Retrieved 2010-03-10. 
15. ^ "St. George's School". Sgs.edu.in. http://www.sgs.edu.in/. Retrieved 2010-03-10. 
16. ^ "All women forest patrolling team in Periyar Tiger Reserve- Women's Day". The Economic Times (Economictimes.indiatimes.com). 2007-12-16. http://economictimes.indiatimes.com/articleshow/2847368.cms. Retrieved 2010-03-10.