26-07-2014, 04:00 PM
Introduction to Chennai Capital
1378304901-CaseStudy.pptx (Size: 94.84 KB / Downloads: 9)
Chennai Capital, established in 1990, one of the leading trading member of BSE,MCX, MCX-SX and NSE in South India .
Head Office located in Chennai and Regional office at Mumbai and Ahmedabad . Sub brokers are spread across Tamil Nadu.
Broad range of services including Broking, Debt syndication, Commodity broking, Financial Management services for SME, Investment Banking, etc.
Shift in Management of Chennai Capital
Promoters of Chennai Capital decided to sell the business.
They had orders from all well-known mutual fund houses.
Company had very good relationship with sub-brokers and trust was created over years.
Total revenue of Chennai Capital was high due to the promoters well established business network.
Staff of Chennai Capital had experienced the ups and downs of the market.
New Management of Chennai Capital
Chennai Capital was bought out by group of Marwadi people for a huge sum.
Chennai Capital started working with same staff for the everyday operations.
All the sub-brokers remained with the new management.
Markets was performing badly.
Total revenue has fallen down drastically more than expected.
Sub-brokers unhappy with the new management.
Compliance with Stock Exchange
Trading member ID given for each broker was changed due to change in management.
Leaded to new empanelment with most of the Institutional Investor.
Order flow from Institutional Investors stopped.
What could have been done to avoid the issue?
Detailed study of Stock Exchange compliance should have been studied by the Buyer before the purchase of the stock broking firm
Fail to Impress Sub-Brokers
Sub-brokers have to be impressed by the broker knowledge’s about market movements.
Rapo with sub-brokers was not build.
What could have been done to avoid the issue?
Should have retained one of the director in the previous management to help in building rapo and for better understanding about market
New to the Business
New management, marwadi group, was into chemical business.
No prior experience in stock market.
What could have been done to avoid the issue?
Should have appointed a consultant for the transaction. Business study could have been better.
Lack of Knowledge in Research Team
Research, the core service for institutional investor was not done properly.
Research team was not given importance and focused well.
Head Research was not performing upto the expectation.
What could have been done to avoid the issue?
More focus for research team would have helped in retaining Institutional Investor. Head Research could have been replaced by a better performer.
Improper Talent Management
Senior person in the company was not given importance.
New labor appointed was not trained to perform well.
What could have been done to avoid the issue?
Senior person should have been given importance. New appointee should have given proper training before involved in daily operations.
Marketing Department was idle
Marketing department was lacking staff and funds was not allocated properly. Failed to add new clients and sub-brokers.
Institutional marketing was not done to the core.
Website was outdated.
What could have been done to avoid the issue?
Marketing should have been aggressive and proper funds should be allocated. Institutional marketing could have been done to the full efficiency. New website should be deployed.
Dealer was Inefficient
Dealers in Chennai Capital was not performing to the maximum efficiency.
What could have been done to avoid the issue?
Output of the dealer could have been reviewed every quarter.
Wrong time to Change Software
New management changed all the software used by the company.
Lead to new learning for all the staff in the company.
Time to fix issue got long due to new software.
What could have been done to avoid the issue?
Software change should be done once the new management is used with daily operations. All the staff should have been trained properly after change in software.