Mumbai, Feb. 16: UTI Investor Services (UTI-ISL), a subsidiary of Unit Trust of India, has signed up for a major makeover. The company has decided to venture out of the mutual fund business of UTI by putting to use skills acquired while providing back-office support to its parent.
The company is considering making a living by providing information technology enabled services with the experience gathered from support services to UTI.
“We have the capability,” said B. S. Pandit, in charge of the subsidiary.
“We will first look at the domestic market to make our presence felt and then venture abroad,” he declared. However, Pandit refused to give details.
“We service nearly two crore investors of UTI by giving them regular updates on dividends,” he said.
UTI-ISL has a major edge in areas as diverse as hosting or co-hosting servers, data migration, transaction processing (currently being touted as a major opportunity for India) and also getting Indian companies to use its registrar and transfer (R&T) services.
“We have a large infrastructure with 520 personnel out of which 120 are IT experts,” Pandit said.
In its new avatar, UTI-ISL will also target big companies with huge shareholder families to outsource the distribution of dividends to it. The confidence stems from the work undertaken for UTI’s various schemes.
UTI-ISL recently beat Karvy as the leading registrar and transfer agent in the country and now claims to service around 20 million unitholders, which is five million more than the second best.
Recently, the Central Board of Direct Taxes (CBDT) had openly talked about outsourcing the work of issuing PAN cards and income-tax refunds to UTI-ISL.
Pandit said that his company was making presentations to leading companies and is hopeful of securing some work. The R&T business in India is pegged at Rs 150 crore and industry circles expect UTI-ISL to gain market leadership soon.