Promoters of FMCG major Dabur India, the Burman family, has formed a joint venture with global investment banking firm Espirito Santo Investment Bank (ESIB) for equity research brokerage businesses in India.
ESIB said in a statement that the new joint venture -- Espirito Santo Securities will be its subsidiary.
"Espirito Santo Investment Bank is delighted to work alongside such a highly respected local promoter family as the Burman's, with shared values and long-term commitment to India, and to building a successful investment banking business here," ESIB Chief Executive Officer Jose Maria Espirito Santo Ricciardi said.
The JV will incorporate the team in India that will be held indirectly by ESIB that is engaged in institutional equity research for some of the leading asset management institutions investing in India.
While the company did not disclose the shareholding pattern, industry sources said the Burman family is understood to control 25% and the rest will be with ESIB.
With the Burman family, a broader, stronger business can be developed, extending the brokerage capability initially, and extending the investment banking proposition for clients over time, the statement said.
"We are honoured to be partnering with the Espirito Santo Investment Bank. We have had the good fortune of partnering with some of the most prominent organisations globally and feel we have achieved this again in this case. We look forward to building a great business together," Mohit Burman said.
The companies have appointed Nick Paulson Ellis as the CEO of Espirito Santo Securities.
Dabur is one of India's largest consumer goods companies, which has a market capitalisation of $4 billion. The promoter family has diversified investments across financial services, including an Indian life insurance joint venture.
ESIB, part of Portugal-based banking conglomerate Banco Espirito Financial Group, is an international investment banking and securities firm that sees huge potential in select emerging economies such as Brazil, India Poland and increasingly Africa.