Menu

Edelweiss Salutes The Indian Entrepreneurial Spirit

India today, is a land of multitude opportunities, one where millions of gutsy entrepreneurs, daring to dream, are bringing ideas to life with their grit and tenacity. With their bold aspirations, ordinary Indians are doing extraordinary things. Unshackled, this entrepreneurial spirit is unmatched in India’s history and resonates strongly with the Edelweiss story, envisioned in much the same way. In our 23rd Annual Report, we salute the steadfast BeUnlimited spirit of ten entrepreneurs from different walks of life, who despite their diverse cultures, upbringing, educational backgrounds and varied lifestyles, share a strong conviction in their beliefs.

Performance Highlights

(In ₹ million except as indicated)
Year Ended March 31 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Total Income 86,225 66,336 53,157 39,119 25,555 21,840 16,707 14,289 9,778 9,005 10,888 3,718
Total Expenditure 72,004 56,756 46,969 33,839 22,040 19,247 14,720 10,789 6,450 5,715 6,421 1,971
Profit Before Tax 14,221 9,580 6,188 5,280 3,515 2,593 1,987 3,500 3,328 3,290 4,467 1,747
Tax Expenses 5,599 3,947 2,354 2,017 1,346 881 681 1,031 879 1,199 1,540 646
Profit After Tax 8,901 6,093 4,144 3,287 2,202 1,785 1,277 2,330 2,292 1,864 2,732 1,099
Paid up Equity Capital 915 833 814 792 769 719 757 752 375 375 375 45
Net worth* 77,624 52,879 43,717 35,314 32,558 26,909 28,748 25,554 24,706 23,303 23,274 7,222
Diluted EPS (₹)
(FV ₹1)#
9.80 6.92 4.85 3.88 2.85 2.31 1.66 3.00 2.94 2.43 4.00 2.08
BVPS (₹) (FV ₹1)# 72.89 52.00 45.14 39.92 37.57 32.13 34.80 30.56 30.04 28.21 24.65 9.36
Year Ended March 31 Total Income Total Expenditure Profit Before Tax
2018 86,225 72,004 14,221
2017 66,336 56,756 9,580
2016 53,157 46,969 6,188
2015 39,119 33,839 5,280
2014 25,555 22,040 3,515
2013 21,840 19,247 2,593
2012 16,707 14,720 1,987
2011 14,289 10,789 3,500
2010 9,778 6,450 3,328
2009 9,005 5,715 3,290
2008 10,888 6,421 4,467
2007 3,718 1,971 1,747
Year Ended March 31 Tax Expenses Profit After Tax Paid up Equity Capital
2018 5,599 8,901 915
2017 3,947 6,093 833
2016 2,354 4,144 814
2015 2,017 3,287 792
2014 1,346 2,202 769
2013 881 1,785 719
2012 681 1,277 757
2011 1,031 2,330 752
2010 879 2,292 375
2009 1,199 1,864 375
2008 1,540 2,732 375
2007 646 1,099 45
Year Ended March 31 Net worth* Diluted EPS (₹) (FV ₹1)# BVPS (₹) (FV ₹1)#
2018 77,624 9.80 72.89
2017 52,879 6.92 52.00
2016 43,717 4.85 45.14
2015 35,314 3.88 39.92
2014 32,558 2.85 37.57
2013 26,909 2.31 32.13
2012 28,748 1.66 34.80
2011 25,554 3.00 30.56
2010 24,706 2.94 30.04
2009 23,303 2.43 28.21
2008 23,274 4.00 24.65
2007 7,222 2.08 9.36

# Adjusted for Corporate Actions

*Net worth including minority

Previous years’ figures have been regrouped wherever necessary

Balance Sheet Size (₹ million)

Total Income (₹ million)

Profit Before Tax (₹ million)

Profit After Tax (₹ million)

Diluted Earning Per
Share (₹) (FV ₹1)#

Book Value Per
Share (₹) (FV ₹1)#

Paid up Equity Capital (₹ million)

Net Worth (₹ million)

FY18 Highlights

TOTAL INCOME

₹86.23 Bn

PROFIT AFTER TAX

₹8.90 Bn

RETAIL CREDIT BOOK

₹161.88 Bn

TOTAL CREDIT BOOK

₹420.10 Bn

ROE - EX - INSURANCE

22.1%

ROA - EX - INSURANCE

2.6%

BALANCE SHEET SIZE

₹550.86 Bn

NET WORTH*

₹77.62 Bn

NET NPLS

0.70%

GROSS NPLS

1.75%

DILUTED EARNING PER
SHARE (FV ₹1)

₹9.80

PROVISION COVER
(INCL. STD ASSET PROV.)

81%

Guiding principles values that leave an imprint

Guiding principles values that leave an imprint

×

His simple philosophy of ‘right to sight for all’ became a beacon of inspiration for his team, to build an empowering institution, that has lit up millions of lives.

Born to a farming family in a small village in South India, Dr. Venkataswamy strived to provide quality affordable eye care for all. After retiring from government service, he started Aravind Eye Hospital. Driven by a vision to eradicate blindness, he built a bold sustainable business, despite inadequate funds. Inspired by him, physicians joined hands, pitching funds by mortgaging their homes. With a philosophy of inclusiveness, the hospital follows a no-appointment system and encourages patients to pay what they can afford.

Bringing expertise and quality within the reach of all is the cornerstone of this social enterprise, which manufactures its own lenses and medications to bring down costs. With almost 60% of the 5.6 million eye surgeries either free or subsidised, Aravind Eye Hospital is a medical success story, built around one man’s vision.

#BeUnlimited like Dr. Venkataswamy

His simple philosophy of ‘right to sight for all’ became a beacon of inspiration for his team, to build an empowering institution, that has lit up millions of lives.

#BeUnlimited like Dr. Venkataswamy

His simple philosophy of ‘right to sight for all’ became a beacon of inspiration for his team, to build an empowering institution, that has lit up millions of lives.

Born to a farming family in a small village in South India, Dr. Venkataswamy strived to provide quality affordable eye care for all. After retiring from government service, he started Aravind Eye Hospital. Driven by a vision to eradicate blindness, he built a bold sustainable business, despite inadequate funds. Inspired by him, physicians joined hands, pitching funds by mortgaging their homes. With a philosophy of inclusiveness, the hospital follows a no-appointment system and encourages patients to pay what they can afford.

Bringing expertise and quality within the reach of all is the cornerstone of this social enterprise, which manufactures its own lenses and medications to bring down costs. With almost 60% of the 5.6 million eye surgeries either free or subsidised, Aravind Eye Hospital is a medical success story, built around one man’s vision.

At Edelweiss, our Guiding Principles serve as an anchor, aligning us to a common vision. They reflect our aspirations and beliefs, influence the way we operate our businesses, steer decision making and help us create value for all our stakeholders, year after year.

Group Guiding Principles

  • We will be a Thinking Organisation. We will constantly bring thought to everything we do. Our clients’ and our own success depend on our ability to use greater ideation and more imagination in our approach
  • We will be Fair to our clients, our employees and all stakeholders
  • We will take care of our People. Our policies - in spirit and in letter - will ensure transparency and equal opportunity for all. We will go beyond the normal goals of attracting, recruiting, retaining and rewarding fine talent. We will ensure that every individual in Edelweiss has an opportunity to achieve their fullest potential
  • We will operate as a Partnership, internally and externally. Though individuals are very often brilliant, we believe teamwork and collaboration will always ensure a better and more balanced organisation. We will also treat our clients as partners and show them the same respect and consideration that we would towards our internal team members
  • We will focus on the Long-Term. Though the world will change a lot in the coming years and our assumptions for the future may not hold up, we will reflect on the long-term implications of our actions. Even when making short-term decisions, we will be aware of the long-term implications
  • We will focus on Growth for our clients, employees and shareholders
  • Our Reputation and Image is more important than any financial reward. Reputation is hard to build and even harder to rebuild. Reputation will be impacted by our ability to think for our clients, maintain confidentiality and by adherence to our value system
  • We will Obey and Comply with the rules of the land. We will maintain the highest standard of integrity and honesty. When we are unclear, we will seek clarifications
  • We will respect Risk. Our business is going to be a constant challenge of balancing risk and reward. Our ability to constantly keep one eye on risk will guide us through this fine balance
  • We will endeavour to grow, protect and wisely use our Financial Capital which is a critical resource for growth
  • We are defined by the Experience our customers have with us. We will strive to make it outstanding at all times
  • We will listen to our customers. listening is the start of the relationship wherein we understand their needs and fulfil these with the most appropriate products and solutions
  • We recognise that we need to satisfy the Needs, sometimes conflicting, of all stakeholders; shareholders who entrust us with their capital, employees who create the organisation, customers who are the reason we exist and society which has given us the resources and opportunity to create value

Growth & profitability consistently beating the odds

Growth & profitability consistently beating the odds

×

Rising after every fall, converting setbacks into successes, she turned every opportunity into a thriving robust enterprise.

From earning two rupees a day to resurrecting a debt ridden Kamani Tubes, Kalpana Saroj’s grit and determination is awe-inspiring. A child bride, walking out of marital abuse, she was determined to write her own destiny. After training as a tailor, she took a government loan and started her own venture. Whether it was starting a furniture business or diversifying into construction, she capitalised on every opportunity that came her way.

Not one to turn down a challenge, she took on the sick and defunct Kamani Tubes and nursed it back to health in a daring revival scheme. From battling union troubles and negotiating with creditors, to relocating manufacturing and restructuring systems, she turned the company’s fortunes around. With seven successful companies under her name and an estimated net worth of more than $100 million, Kalpana has scripted history.

#BeUnlimited like Kalpana Saroj

Rising after every fall, converting setbacks into successes, she turned every opportunity into a thriving robust enterprise.

#BeUnlimited like Kalpana Saroj

Rising after every fall, converting setbacks into successes, she turned every opportunity into a thriving robust enterprise.

From earning two rupees a day to resurrecting a debt ridden Kamani Tubes, Kalpana Saroj’s grit and determination is awe-inspiring. A child bride, walking out of marital abuse, she was determined to write her own destiny. After training as a tailor, she took a government loan and started her own venture. Whether it was starting a furniture business or diversifying into construction, she capitalised on every opportunity that came her way.

Not one to turn down a challenge, she took on the sick and defunct Kamani Tubes and nursed it back to health in a daring revival scheme. From battling union troubles and negotiating with creditors, to relocating manufacturing and restructuring systems, she turned the company’s fortunes around. With seven successful companies under her name and an estimated net worth of more than $100 million, Kalpana has scripted history.

At Edelweiss, our ability to reinvent ourselves at the turn of every economic and business cycle, has ensured profitability since inception, with a PAT CAGR of 38% over the last seven years. This robust growth and profitability has come on the back of our sustained efforts towards building a bank-like diversified financial services model.

With the older businesses continuing to grow and newer businesses rapidly scaling up, consistent profitability is a sweet reward. Our key business lines help our customers create, grow and protect their wealth.

Credit - Retail Credit, Corporate Credit, Distressed Credit

Franchise & Advisory - Wealth management, Asset management, Capital markets

Insurance - Life Insurance, General Insurance

Group Snapshot: FY18

  • 30% growth in revenue at ₹86,225 million (₹66,336 million FY17)
  • 46% growth in Profit After Tax (PAT) at ₹8,901 million (₹6,093 million FY17)
  • 44% growth in PAT ex-insurance at ₹10,361 million (₹7,194 million FY17)
  • 47% increase in Group Gross Net Worth at ₹77.62 billion (₹52.88 billion FY17)
  • 43% jump in Total Assets managed at ₹2.24 trillion (₹1.56 trillion FY17)
  • 17.1% Consolidated Return on Equity (RoE) (15.5% FY17)
  • 22.1% RoE ex-insurance (20.7% FY17)
  • 2.0% Consolidated Return on Assets (RoA) (1.7% FY17)
  • 2.6% RoA ex-insurance (2.4% FY17)
  • 7.7% Net Interest Margin (NIM) for credit book (7.2% FY17)
  • 71% increase in Fee & Commission income at ₹21,341 million (₹12,481 million FY17)

Business Snapshot: FY18

Credit

  • 52% growth in Total Credit Book at ₹420 billion (₹276 billion FY17) across corporate, retail and distressed credit
  • 40% growth in Corporate Credit book at ₹195 billion (₹139 billion FY17)
  • 81% growth in Retail Credit book, which now constitutes 39% of total credit book

Wealth Management

  • 49% growth in Assets under Advice (AuA) to ₹901 billion in Wealth Management (₹603 billion FY17)

Asset Management

  • 60% growth in Assets under Management (AuM) in the Asset Management business at ₹292 billion (₹182 billion FY17)
  • 121% growth AuM in Multi Strategy at ₹57 billion (₹26 billion FY17)

Life Insurance

  • 45% growth in Gross Premium Income at ₹6,383 million (₹4,413 million FY17) recorded by Edelweiss Tokio Life, one of the fastest growing Insurance companies in India
  • 52% growth in Collected Individual Annual Premium Equivalent at ₹2,510 million (₹1,650 million in FY17)

Scalability expanding new horizons

Scalability expanding new horizons

×

Together with his cousins, he built a scalable business out of a simple ingenious idea by extending, pursuing and capitalising on opportunities.

P. C. Musthafa, a boy born in poverty, managed to scale his home business of supplying idli batter to a multi-million dollar enterprise in less than a decade. Starting from a small 50 sq ft kitchen, producing 100 packs of batter a day to over 55,000 kgs of batter daily, ID Fresh Foods, is today a $100 million enterprise. An obsession to simplify processes, led him to innovate on packaging, thereby expanding the product portfolio to parathas, rotis and other ready-tocook items.

From making ₹20 lakh in 2005 to a ₹186 crore turnover in the last fiscal, his enterprise has built significant scale of operations, extending its footprint to over 20,000 stores across India and the middle East. Ascending new heights, Musthafa continues to walk tall and dream big.

#BeUnlimited like PC Musthafa

Together with his cousins, he built a scalable business out of a simple ingenious idea by extending, pursuing and capitalising on opportunities.

#BeUnlimited like PC Musthafa

Together with his cousins, he built a scalable business out of a simple ingenious idea by extending, pursuing and capitalising on opportunities.

P. C. Musthafa, a boy born in poverty, managed to scale his home business of supplying idli batter to a multi-million dollar enterprise in less than a decade. Starting from a small 50 sq ft kitchen, producing 100 packs of batter a day to over 55,000 kgs of batter daily, ID Fresh Foods, is today a $100 million enterprise. An obsession to simplify processes, led him to innovate on packaging, thereby expanding the product portfolio to parathas, rotis and other ready-tocook items.

From making ₹20 lakh in 2005 to a ₹186 crore turnover in the last fiscal, his enterprise has built significant scale of operations, extending its footprint to over 20,000 stores across India and the middle East. Ascending new heights, Musthafa continues to walk tall and dream big.

At Edelweiss, capitalising on inorganic growth opportunities, making counter-cyclical investments and growing into adjacent business areas has held us in good stead. With an asset base of ₹551 billion, we are perfectly poised to scale up, backed by the tailwinds of financialisation of assets and democratisation of credit.

With a varied customer base spanning sovereign republics and corporate houses to the average urban and rural Indian household, we have expanded our reach and increased our diverse offerings to meet almost all financial needs. Helmed by dynamic leaders, our robust technology and product platforms have led to agile business structures, enabling us to leverage opportunities and gain significant size and market share.

Group Snapshot: 6 year perspective

  • 38% CAGR in PAT to ₹8,901 million (₹1,277 million FY12)
  • 52% CAGR in Total Assets managed at ₹2.24 trillion (₹0.18 trillion FY12)
  • 170% increase in Group Gross Net Worth to ₹77.62 billion (₹28.75 billion FY12)
  • 202% growth in customer base catering to ~1,200,000 clients (399,000 FY12)
  • 223% growth in employee strength to 10,052 employees (3,108 FY12)
  • 48% CAGR in Retail Credit to ₹161.88 billion (₹15.35 billion FY12)
  • 63% CAGR in AuA to ₹901 billion (₹48 billion FY12)

Business Snapshot: FY18

Retail Credit

  • 81% growth in Retail Credit to ₹161.88 billion (₹89.52 billion FY17)
  • Expanded to 132 branches in 118 cities and over 3,000 villages with a client base of ~362,000
  • SME business expanded to 88 locations across 19 states (17 locations in 11 states FY17)
  • 91% growth in Agri Credit book size to ₹8.85 billion (₹4.63 billion FY17)
  • Agri Credit network – 523 warehouses, 1.8 million tonnes storage capacity, 17 states, empanelment with 19 banks

Wealth Management

  • Rapidly gaining market share with consistent increase in AuA; Addition of ~₹300 billion in FY18 at a growth rate of 49%
  • Broad spectrum of clients – Ultra High Net Worth, High Net Worth and Mass Affluent

Asset Management

  • 10x growth in aggregate AuM of Asset Management in 3 years to ₹292 billion (₹28 billion FY15)
  • 30 mutual fund schemes managed with an investor base of 117,800 (79,800 FY17)

Capital Markets

  • Investment Banking handled 23 transactions, 8 of which were over ₹10 billion

Life Insurance

  • 37% CAGR in Collected Individual Annual Premium Equivalent since FY15 (16% industry average)
  • ~31,000 Personal Finance Advisors (PFAs) (~21,000 in FY17)
  • 121 branches in 93 locations pan India
  • over 64,000 policies issued in FY18
  • ₹6.70 billion capital infusion by JV partners in FY18 (total capital infused ₹19.97 billion)
  • Indian Embedded Value (IEV) at ₹16.35 billion as on March 31, 2018

Productivity & efficiency delivering constant value

Productivity & efficiency delivering constant value

×

Constantly pushing the bar, embracing technology to drive efficiencies, he earned the respect of peers.

From just supplying wafers to a Rajkot cinema canteen to taking over 70% of the Gujarat snack market, Chandubhai Virani's Balaji Wafers has stumped MNC food giants with its efficient operations. What started as one-on-one selling, today, boasts of a robust distribution network of 750+ dealers that reach out to over 10 lakh retail outlets.

Recognising the importance of labour efficiency, Chandubhai invested in the latest machinery and was one of the first to fully automate his plants. The benefits were many; economies of scale, 12 | Productivity and Efficiency standardised products, speedy production among others, making Balaji Wafers, one of the largest snack manufacturing companies in the country. using image processing technology to minimise human intervention, as well as improve quality checks, Balaji today, has a total daily processing capacity exceeding 7.5 lakh kgs of potatoes. What’s more, by producing bio fuel from the organic waste generated at his plant and setting up windmills, he has helped reduce carbon footprint as well.

#BeUnlimited like Chandubhai Virani

Constantly pushing the bar, embracing technology to drive efficiencies, he earned the respect of peers.

#BeUnlimited like Chandubhai Virani

Constantly pushing the bar, embracing technology to drive efficiencies, he earned the respect of peers.

From just supplying wafers to a Rajkot cinema canteen to taking over 70% of the Gujarat snack market, Chandubhai Virani's Balaji Wafers has stumped MNC food giants with its efficient operations. What started as one-on-one selling, today, boasts of a robust distribution network of 750+ dealers that reach out to over 10 lakh retail outlets.

Recognising the importance of labour efficiency, Chandubhai invested in the latest machinery and was one of the first to fully automate his plants. The benefits were many; economies of scale, 12 | Productivity and Efficiency standardised products, speedy production among others, making Balaji Wafers, one of the largest snack manufacturing companies in the country. using image processing technology to minimise human intervention, as well as improve quality checks, Balaji today, has a total daily processing capacity exceeding 7.5 lakh kgs of potatoes. What’s more, by producing bio fuel from the organic waste generated at his plant and setting up windmills, he has helped reduce carbon footprint as well.

At Edelweiss, an unwavering focus on improving efficiency and productivity, has helped us script a consistent performance. This balanced approach enables us to not only improve operations but also enhance our responsiveness to market needs and be future ready.

Through adoption of technology for rapid automation, building efficiencies via systems and processes and judicious use of resources, we continue to leverage our balance sheet effectively. The diversified nature of our business ensures capital-efficient profitability.

Group Snapshot: 6 year perspective

  • Highest Short-Term Debt Rating of A1+ by Crisil, CARE and ICRA and Long-Term Debt Rating at AA by Crisil, CARE and ICR A and AA+ by Brickwork and SMERA
  • RoE ex-insurance increased to 22.1% (7.3% FY12)
  • RoA ex-insurance increased to 2.6% (1.2% FY12)
  • Cost to Income ratio (C/I) ex-insurance improved to 47% (70% FY12)
  • Fully automated processes across the customer lifecycle – CR M, client on-boarding, transactions, risk management, servicing and reporting
  • Use of chatbots for handling customer queries on the website as well as customer support using Natural Language Processing and Artificial Intelligence

Business Snapshot: FY18

  • Credit business improved its NIM (including fees) to 7.7% (7.2% FY17)
  • C/I ratio for Credit business improved to 34% (36% FY17)
  • 138% increase in Asset Reconstruction Company recoveries to ₹25.74 billion (₹10.82 billion FY17)
  • C/I ratio for Franchise & Advisory businesses improved to 65% (73% FY17)
  • C/I ratio for Wealth Management business improved to 67% (76% FY17)

Life Insurance

  • Claim settlement ratio improved to 95% (93% FY17)
  • ~1,67,800 policies in force, 73% CAGR over FY12
  • 13th month overall persistency for FY18 at 80%

Leadership spearheading change and progress

Leadership spearheading change and progress

×

Inspiring a collaborative movement, he empowered co-workers to realise a collective vision.

Arunachalam muruganantham, a school dropout from a poor family in southern India was looking to make cheap sanitary pads in a country where menstruation is a taboo subject. Menstruation being a taboo subject in his village, he found himself ostracised by his family. Undeterred, he went on to create the world’s first low-cost machine to produce sanitary napkins.

Using innovative grassroot mechanisms to generate awareness, he revolutionised menstrual health for rural women by giving them the dignity to buy affordable sanitary napkins. His startup company, Jayaashree Industries, supplies machines to women, empowering them with co-ownership in the enterprise. So far, he has produced over 2,000 machines that are installed in most Indian states and 10 other countries. What’s more, he has also inspired filmmakers to make a movie on his life called Padman.

#BeUnlimited like Arunachalam Muruganantham

Inspiring a collaborative movement, he empowered co-workers to realise a collective vision.

#BeUnlimited like Arunachalam Muruganantham

Inspiring a collaborative movement, he empowered co-workers to realise a collective vision.

Arunachalam muruganantham, a school dropout from a poor family in southern India was looking to make cheap sanitary pads in a country where menstruation is a taboo subject. Menstruation being a taboo subject in his village, he found himself ostracised by his family. Undeterred, he went on to create the world’s first low-cost machine to produce sanitary napkins.

Using innovative grassroot mechanisms to generate awareness, he revolutionised menstrual health for rural women by giving them the dignity to buy affordable sanitary napkins. His startup company, Jayaashree Industries, supplies machines to women, empowering them with co-ownership in the enterprise. So far, he has produced over 2,000 machines that are installed in most Indian states and 10 other countries. What’s more, he has also inspired filmmakers to make a movie on his life called Padman.

At Edelweiss, we foster an environment that cultivates leadership, entrepreneurship and innovation. A resilient business platform, differentiated strategy and an impressive leadership bench, enables us to rapidly scale new heights in the competitive financial services arena.

As leaders in the Capital Markets and Asset Reconstruction businesses, we continue to stand out and lead the pack. A high level of commitment and determination drives us to raise the bar for all our businesses. Our Credit business continues to grow from strength to strength, while the relatively younger Wealth Management and Life Insurance businesses have gained traction and built significant size and scale. We have earned industry recognition too, reflected in the 28 prestigious awards won, across businesses in FY18.

Highlights: FY18

  • Featured among Forbes India’s Super 50 Companies 2017
  • Among the top 3 largest Non-Banking Financial Companies (NBFCs) in the Structured Credit space*
  • Maintained leadership position as India’s largest Asset Reconstruction Company with ~50% of the industry’s managed assets*
  • Among the top 5 wealth management players*
  • Market leaders in Capital Markets with strong performance in both equity and debt

Equity

  • Among the leading domestic institutional brokers with 4-4.5% market share by revenue, backed by a strong research desk covering 252 stocks across 30 sectors
  • Edelweiss Custodial Services ranked as the leading India Custodian***

Debt

  • Ranked 1st in both Commercial Paper issuances with 23% market share and public debt issues with 81% market share in FY18**
  • Leading player in the Private Debt space across real estate credit, distressed assets credit and special opportunities

*Morgan Stanley Research, 2017

**Prime Database

***Global Custodian Emerging Markets Survey, 2017

Governance administering a better tomorrow

Governance administering a better tomorrow

×

She drove economic progress, through integrity, accountability and strong administrative oversight.

Chhavi Rajawat, followed her heart and quit her thriving corporate career to become Sarpanch of Soda, a village in Rajasthan. She was India’s first Sarpanch with a business management degree. She yearned to bring corporate governance to rural India and improve lives, systematically and collectively working to make the administration of panchayats more effective.

None of this has been easy though. Rajawat had to overcome deep-seated cultural resistance, 16 | governance dig her heels in and refuse to give bribes, while doggedly pursuing her goal. using technology to bring about transparency and accountability, she has improved efficacy of welfare programs, brought uninterrupted electric supply to the village and enhanced health and hygiene standards in Soda.

#BeUnlimited like Chhavi Rajawat

She drove economic progress, through integrity, accountability and strong administrative oversight.

#BeUnlimited like Chhavi Rajawat

She drove economic progress, through integrity, accountability and strong administrative oversight.

Chhavi Rajawat, followed her heart and quit her thriving corporate career to become Sarpanch of Soda, a village in Rajasthan. She was India’s first Sarpanch with a business management degree. She yearned to bring corporate governance to rural India and improve lives, systematically and collectively working to make the administration of panchayats more effective.

None of this has been easy though. Rajawat had to overcome deep-seated cultural resistance, 16 | governance dig her heels in and refuse to give bribes, while doggedly pursuing her goal. using technology to bring about transparency and accountability, she has improved efficacy of welfare programs, brought uninterrupted electric supply to the village and enhanced health and hygiene standards in Soda.

At Edelweiss, we align our governance framework to the needs of the world around us. From ensuring longlasting stakeholder relationships via ethical business practices to addressing key social issues such as education, women empowerment and livelihoods, we positively influence both business and society. A commitment to act in a transparent, fair and accountable manner, always abiding by the laws of the land, permeates our governance practices.

Strong risk management and compliance is part of our DNA and tempers acceleration opportunities with necessary brakes, ensuring responsible growth. Effectively harnessing technology, the governance and risk management framework defines how we set and achieve business objectives, while monitoring and controlling risks. Our clearlydefined business strategy and invaluable Board oversight ascertains longevity and stability.

Governance Overview

  • 11 member Board, collectively brings over 350 Man-years of rich, diverse experience, playing a vital role in policy design and strategic decision making
  • Key risk, audit and compliance committees headed by external Independent Directors foster best in class risk and governance controls coupled with neutrality
  • All major subsidiaries have adopted higher levels of governance norms and listing standards and have independent directors who ensure keen external oversight and transparency
  • Holistic framework for risk management spanning multiple risk vectors like business risk, financial risk, liquidity risk, operational risk, regulatory risk, compliance risk, reputational risk, fraud risk and technology risk
  • Analytics-driven approach enables early detection and derailment of potential risks

Highlights: FY18

  • Centres of Excellence address diverse business risks in a uniform manner, delivering enhanced efficiency, safety and service to customers
  • Comprehensive cyber and information security controls to adequately protect sensitive systems and data – Security Operations Center to monitor and foil cyber anomalies 24*7
  • Whistleblower policy provides a secure channel to report unethical behaviour and code of conduct violations
  • Regular awareness and mitigation programs conducted for employees, building a strong risk and compliance culture
  • Mandatory workshops and e-learning modules on Group Policies – Prevention of Sexual Harassment (POSH), Code of Conduct, ABC of Compliance, Anti Money Laundering, Whistleblower, Prevention of Insider Trading, Information Security and Anti-Fraud
  • Employees are encouraged to connect through DilKiBaat – a communication channel to report, share feedback and ideas directly with the Chairman
  • Foster a compliance and risk consciousness amongst employees through an annual organisation wide recognition program

Sustainability for the long haul

Sustainability for the long haul

×

He responsibly built a business strongly anchored to a larger societal good, leaving a cleaner planet for our next generation.

Mansukhbhai Prajapati, a potter living in rural Gujarat, used his imagination to solve basic issues of deprivation among the poor. Despite suffering major losses during the Kutch earthquake, he picked up the pieces to begin afresh on a remarkably innovative idea - a refrigerator, made of mud that keeps food fresh and works without electricity. Neither working long hours nor bankruptcy would deter him from launching Mitticool refrigerator in 2002.

Frugally designed, using minimal resources, priced at a fraction of the cost of a conventional refrigerator, his product was a godsend in rural India, where electricity is scarce. Today, Mitticool refrigerator is finding takers not just in India, but in London, America, Singapore and Africa too.

#BeUnlimited like Mansukbhai Prajapati

He responsibly built a business strongly anchored to a larger societal good, leaving a cleaner planet for our next generation.

#BeUnlimited like Mansukbhai Prajapati

He responsibly built a business strongly anchored to a larger societal good, leaving a cleaner planet for our next generation.

Mansukhbhai Prajapati, a potter living in rural Gujarat, used his imagination to solve basic issues of deprivation among the poor. Despite suffering major losses during the Kutch earthquake, he picked up the pieces to begin afresh on a remarkably innovative idea - a refrigerator, made of mud that keeps food fresh and works without electricity. Neither working long hours nor bankruptcy would deter him from launching Mitticool refrigerator in 2002.

Frugally designed, using minimal resources, priced at a fraction of the cost of a conventional refrigerator, his product was a godsend in rural India, where electricity is scarce. Today, Mitticool refrigerator is finding takers not just in India, but in London, America, Singapore and Africa too.

At Edelweiss, the diversification of businesses across asset classes, client segments, and geographies, has helped us build a sustainable de-risked business model This is demonstrated ably in the reduced volatility, consistent growth and business performance across cycles.

Management of environmental, social and financial demands to ensure responsible growth is embedded in our business practices. Cognizant of the fact that growth cannot be at the cost of social inequities or depleting resources, we are focused on delivering a triple bottom line of people, profits and planet. Detailed account of our concerted Environment, Social and Governance (ESG) efforts is available in the ESG report.

Financial Sustainability

  • Matched Asset Liability Management (ALM) across durations
  • Comfortable Capital Adequacy Ratio at 17.04% at group level
  • Comfortable Debt to Equity Ratio at 4.9x excluding Treasury Assets
  • Liquidity cushion at 9% of balance sheet
  • Diversified revenue and profit streams eliminating the impact of volatility in business cycles
  • Maintained strong asset quality with gross NonPerforming Assets (NPAs) at 1.75%, Net NPAs at 0.70% and a high collateral cover

Social Sustainability

  • Over ₹1.5 billion committed to the social sector by EdelGive Foundation, the philanthropic arm of the group
  • Over 85% employees engaged in financial and nonfinancial giving, dedicating over 29,500 man-hours till date
  • Impacted the lives of 1.2 million+ customers, 60,000+ families and 13,000+ partners and associates via 10,000+ employees across 450+ offices

Environmental Sustainability

  • 27% of power consumption met by renewable energy sources and 9% reduction in carbon emissions at Edelweiss House (corporate head office in Mumbai)
  • 1.2 MW solar energy plant installed at Solapur, generating ~1.7 million units annually
  • 60 KW roof-top solar panels installed and recycled
  • ~8,700 kg of organic waste as fertilizer for plants at Fountainhead, Edelweiss’s leadership development centre in Alibaug
  • ~100,000 litres of water supply generated via rainwater harvesting and recycling initiatives at Fountainhead

Innovation & technology pushing creative boundaries

Innovation & technology pushing creative boundaries

×

He brought innovative ideas to life using technology, transforming businesses and opening up a world of possibilities.

As a youngster, machines fascinated Anirudh Sharma. Moved by the troubles of the blind, Anirudh built a shoe prototype to assist mobility of the visually impaired. His innovation was so impressive that one of the top universities in the world offered him a place, despite not having the necessary qualifications.

He returned to India to launch 'Le Chal' – a shoe-smartphone combination for the blind - 20 | Innovation And Technology embedded with hardware and connected via Bluetooth to a smartphone. Relaying simple vibrations to notify turns and obstacles, it helps the blind seamlessly navigate. To continue to subsidise his shoes, he extended the product line to develop insoles as a fashion and fitness accessory. In this manner, he was able to ensure his shoes remained affordable, helping transform the lives of millions of visually impaired.

#BeUnlimited like Anirudh Sharma

He brought innovative ideas to life using technology, transforming businesses and opening up a world of possibilities.

#BeUnlimited like Anirudh Sharma

He brought innovative ideas to life using technology, transforming businesses and opening up a world of possibilities.

As a youngster, machines fascinated Anirudh Sharma. Moved by the troubles of the blind, Anirudh built a shoe prototype to assist mobility of the visually impaired. His innovation was so impressive that one of the top universities in the world offered him a place, despite not having the necessary qualifications.

He returned to India to launch 'Le Chal' – a shoe-smartphone combination for the blind - 20 | Innovation And Technology embedded with hardware and connected via Bluetooth to a smartphone. Relaying simple vibrations to notify turns and obstacles, it helps the blind seamlessly navigate. To continue to subsidise his shoes, he extended the product line to develop insoles as a fashion and fitness accessory. In this manner, he was able to ensure his shoes remained affordable, helping transform the lives of millions of visually impaired.

At Edelweiss, ideas are our accelerator, but most importantly they are backed by exceptional execution, which has helped us change the rules of the game. An end-to-end technology platform enables all businesses and is the cornerstone for our success.

We regularly invest in robust and scalable technology architecture, creating the foundation for automated and integrated processes. This helps to drive organisational efficiency, digitally transforming businesses across customer lifecycles. With a steadfast eye on future developments and possibilities we are geared to adopt and adapt swiftly.

Group Snapshot

  • Technology solutions across 300+ locations, 2,500+ trading terminals, six million transactions per day with 99.98% uptime
  • Adopted cost effective and secure hybrid cloud technology for on-demand scalability
  • ISO 27001:2013 certified information security initiatives that provide security, integrity and privacy of customer data and other information within the company
  • Over 130 technology led projects across data security, customer engagement, data analytics, artificial intelligence, machine learning among others
  • Digital transformation programs for retail businesses to change gears and manage accelerated growth via Cloud, Analytics, Artificial Intelligence and Robotics Process Automation

Business Snapshot: FY18

Credit

  • Leveraged India Stack’s infrastructure to digitise service delivery in Retail lending
  • Reduced customer onboarding turnaround time from 1 day to 10 minutes in Retail Lending
  • Automated underwriting and risk assessment across credit businesses
  • Real time geo-tracking of over 450 field executives across 500 remote warehouses in Agri Credit business

Wealth & Asset Management

  • Distributor platform to manage account opening, transactions and portfolio tracking
  • 1.7 lakh users of the Edelweiss Mobile Trader, contributing to almost 50% of the online trading revenue

Capital Markets

  • Advanced deal tracking, monitoring and risk management processes across Capital markets & Advisory
  • Insurance aggregator platform for B2B clients by Edelweiss Insurance Brokers

Life Insurance

  • Integrated lead management and policy issuance system across channels
  • Seamless agent management with an end-to-end portal tracking everything from on-boarding to payouts
  • Machine learning at the underwriting stage to prevent fraudulent applications
  • Wealth Plus recognised for product innovation at the Golden Peacock Awards 2018, ET NOW BFSI Awards 2018 and the Golden Globe Tigers Awards 2018

People, diversity & culture virtues that empower

People, diversity & culture virtues that empower

×

She fuelled collective aspirations, embracing diversity and inclusion, creating a vibrant enterprise.

Strong will power, passion and the collective push from the local women of Mhaswad led Chetna gala Sinha, to set up mann Deshi mahila Sahakari Bank. The first rural financial institution to receive a co-operative banking license from the RBI, it was run by women, for women.

What started two decades ago with working capital pooled together by over 1,000 members, has today reached over 3 lakh women, providing both access to finance and knowledge and 22 | People, Diversity & Culture turned sleepy, rural Mhaswad into a seat of entrepreneurial aspirations.

Addressing diverse needs of the rural populace, the foundation has worked on grassroot issues, invested in rural infrastructure, skill building and strengthening women’s linkages with new markets. With 20,000 individual accounts and loans worth ₹440 crore disbursed till date, Chetna aspires to empower over a million women entrepreneurs by 2020.

#BeUnlimited like Chetna Gala Sinha

She fuelled collective aspirations, embracing diversity and inclusion, creating a vibrant enterprise.

#BeUnlimited like Chetna Gala Sinha

She fuelled collective aspirations, embracing diversity and inclusion, creating a vibrant enterprise.

Strong will power, passion and the collective push from the local women of Mhaswad led Chetna gala Sinha, to set up mann Deshi mahila Sahakari Bank. The first rural financial institution to receive a co-operative banking license from the RBI, it was run by women, for women.

What started two decades ago with working capital pooled together by over 1,000 members, has today reached over 3 lakh women, providing both access to finance and knowledge and 22 | People, Diversity & Culture turned sleepy, rural Mhaswad into a seat of entrepreneurial aspirations.

Addressing diverse needs of the rural populace, the foundation has worked on grassroot issues, invested in rural infrastructure, skill building and strengthening women’s linkages with new markets. With 20,000 individual accounts and loans worth ₹440 crore disbursed till date, Chetna aspires to empower over a million women entrepreneurs by 2020.

At Edelweiss, the paradigm of ‘Collective Ownership and Individual Responsibility’ fosters a robust entrepreneurial spirit that cultivates leaders who add value and shape the organisation, year after year. We are a crosscultural mosaic of over 10,000 people, from diverse backgrounds, practices and skillsets, seen at every level, across businesses.

Our inclusive culture is the source of our strength, bringing in fresh ideas, perspectives and experiences, encouraging and nurturing innovation and fostering a truly collaborative workplace. This culture is a common thread that binds us together, despite our separate and distinct identities.

With an empowered workforce, who seize opportunities and tackle challenges proactively, we are committed to building an agile and responsive organisation, driving business growth.

Group Snapshot

  • The Edelweiss leadership program (ElP), comprising of 6% of the employee base is a robust development program that identifies and grooms high potential leaders and builds a strong and growing leadership bench across levels – Management Committee, Senior Leaders, Business Leaders, Emerging Leaders
  • Largest Employee Stock ownership Plan (ESoP) pool in the non-banking financial services space, inculcating a culture of ownership
  • 40% of employees participate in health, fitness and wellness initiatives aimed at enhancing work-life balance via Edelcare
  • Diverse, inclusive culture – women comprise 20% of the employee base
  • Employees are encouraged to volunteer time and expertise in delivering high quality solutions to issues faced by the non-profit organisations supported by EdelGive Foundation
  • Employee participation in social projects was recognised at the iVolunteer Awards 2017
  • Zero tolerance to discrimination on the basis of gender, caste, creed, religion and sexual orientation
  • Prevention of Sexual Harassment (POSH) sensitisation workshops conducted across offices covering 92% of the employee base
  • Education assistance provided to employees' children to pursue higher education
  • Encouraging a value based culture through a recognition program, honouring employees who exemplify risk management, collaboration, customer centricity, people development, technology and innovation

Customer experience little delights go a long way

Customer experience little delights go a long way

×

He developed strong insights into customer needs, making them central to business, creating wow moments.

Working as a dishwasher, Prem ganpathy had a burning desire to succeed. When he got a chance to be a tea boy, he seized it, craving to interact with customers and understand their needs. In time, he was earning 3x more than the other tea boys. His secret sauce to success? Well, he learnt his customer ’s preferences for their daily cuppa and offered them just that before they could even ask for it.

When he started his own venture, Dosa Plaza, this understanding held him in good stead. He adapted the humble dosa to meet varied consumer tastes, fine tuning the recipes based on feedback from his patrons. Delighted customers and soaring business due to word-of-mouth publicity, soon saw a chain of Dosa Plaza restaurants across the country, further expanding to international shores too.

#BeUnlimited like Prem Ganpathy

He developed strong insights into customer needs, making them central to business, creating wow moments.

#BeUnlimited like Prem Ganpathy

He developed strong insights into customer needs, making them central to business, creating wow moments.

Working as a dishwasher, Prem ganpathy had a burning desire to succeed. When he got a chance to be a tea boy, he seized it, craving to interact with customers and understand their needs. In time, he was earning 3x more than the other tea boys. His secret sauce to success? Well, he learnt his customer ’s preferences for their daily cuppa and offered them just that before they could even ask for it.

When he started his own venture, Dosa Plaza, this understanding held him in good stead. He adapted the humble dosa to meet varied consumer tastes, fine tuning the recipes based on feedback from his patrons. Delighted customers and soaring business due to word-of-mouth publicity, soon saw a chain of Dosa Plaza restaurants across the country, further expanding to international shores too.

At Edelweiss, customers are at the heart of everything we do. We believe Customer Experience is not restricted to service delivery, but extends to all moments of truth, including product design, pricing and processes.

Led by consumer insights, our goal is not just to deliver innovative products and services, but create value for our customers. Ultimately, it’s about anticipating and meeting our 1.2 million customers’ ever-changing needs, striving to remove limitations, and helping them achieve their aspirations and #BeUnlimited

Group Snapshot

  • Group wide culture of customer-centric thinking, driven by Customer Experience Officers and supported by top management across businesses
  • Monthly feedback mechanism, based on NPS® methodology, reaching out to ~2000 customers every month, helping identify possible process/ service gaps
  • Insights from consumer panels and focus groups help create products that suitably meet customer needs
  • Mapping customer journeys to ensure consistency and seamless experience across all touchpoints and channels
  • Single point access for customers, using smart technologies like voice recognition to improve customer satisfaction
  • Seamless, paperless, single window on-boarding for retail customers, utilising digital platforms, leveraging India Stack and e-KyCs
  • Increased use of Data Analytics in decision making, from customer on-boarding and credit appraisal to insurance underwriting
  • Use of Artificial Intelligence in credit evaluation process, helping in speedy loan disbursals
  • Instant decision making and simplified application process for online sales channel for Life Insurance
  • Multiple initiatives deployed in Artificial Intelligence, Machine Learning and Robotics Process Automation – all aimed at improving the overall customer experience
  • Edelweiss Global Wealth & Asset Management recognised for the Best Customer-Centric Culture at the Customer Experience Awards 2017

EdelGive Foundation

Committed to effecting sustainable and scalable impact, EdelGive Foundation supports NGOs with an array of services, including funding, capacity building, and building linkages to philanthropic capital providers. Recognising the need to collaborate to effect large scale social transformation, EdelGive has, over the last decade, built a philanthropic ecosystem of non-profits, corporates, HNIs, family foundations, researchers, media and other like-minded persons. With options like co-funding, pro bono consulting and management services, starting from identifying NGOs to monitoring and evaluating progress, corporate donors are able to leverage EdelGive’s strengths and expertise in the social sector.

EdelGive Foundation – A Decade of Giving

2008

2008

Small beginning for a larger good. EdelGive Foundation is set up

2009

2009

Instituted EdelGive Social Innovation Honours (ESIH) Awards

2010

EdelGive funds M C Mary Kom through Olympic Gold Quest

2011

EDGE, a journey of collaborative philanthropy and fascinating discussions where various development sector stakeholders meet, interact and understand each other

2012

Institution of ‘India NGO Awards’ as a joint venture with Rockefeller Foundation and Resource Alliance

2013

Institutionalised Employee Engagement – 3,500+ employees contributed 7,000+ hours

2014

Collaborative Philanthropy – EdelGive’s brand of giving

2015

Launched EdelGive coalition for Education, with Government of Maharashtra to transform education outcomes in maharashtra

2016

Won the FICCI CSR Awards under the category of Women’s Empowerment, for EdelGive’s work with CORO

Vidya Shah, CEO, Edelgive Foundation, was awarded the BFSI Woman of the year

Awarded by CNBC-TV 18 for Advancing Financial Inclusion by channelising CSR Budgets into Financial Aids

2017

Partnership with Bill and Melinda Gates Foundation to drive change in the deprived communities across India

iVolunteer Award – leader in Employee Volunteering, 2017

ESG Report

At Edelweiss, we are very conscious that accelerated growth in our businesses cannot come at the cost of stark societal inequities or a deteriorating planet. How we do business is as important as what we do. We remain deeply committed to reducing our environmental footprint and creating positive social impact, while upholding the highest standards of governance. With sustainable and responsible growth being the only acceptable model for our business, we have embraced the ESG framework.

Edelweiss has supported a number of environment and sustainability related initiatives over the past several years. In 2017, Edelweiss Group adopted the sustainable development goals envisioned by the United Nations, where world leaders agreed to 17 goals for a better world by 2030. These goals, which are a universal call to action to end poverty, fight inequality and stop climate change, form the foundation of our Environment and Social Initiative, with a focus on People and Planet.

Demonstrating integrity and strict discipline in everything we undertake is a reflection of our broader commitment to governance. Our comprehensive Corporate Governance practices ensure the best interests of our stakeholders, with our Guiding Principles governing our day-to-day conduct, helping us deliver what our stakeholders expect of us – the highest possible standards of professional ethics.

Our ESG commitment reflects our responsibility to clients, shareholders and the communities in which we operate.

ENVIRONMENT

SOCIAL

GOVERNANCE

Click on the icon to read more

Board Of Directors

Rashesh Shah

Chairman, Managing Director & CEO

Venkatchalam Ramaswamy

Executive Director

Himanshu Kaji

Executive Director & Group COO

Rujan Panjwani

Executive Director

Vidya Shah

Non-Executive Director

P N Venkatachalam

Independent Director

Berjis Desai

Independent Director

Sanjiv Misra

Independent Director

Navtej S. Nandra

Independent Director

Kunnasagaran Chinniah

Independent Director

Biswamohan Mahapatra

Independent Director