Dabur's Burmans buy stake in Espirito Santo's India unit

Mumbai: The Burman family, promoter of Dabur India, has picked up a stake in Portuguese company Espírito Santo’s Indian unit, marking its entry into the investment banking and stock broking businesses. Espirito Santo Investment Bank said on Tuesday it had entered into a joint venture (JV) with the Burman family, which would operate under its unit, Espírito Santo Securities. The JV will incorporate Espirito Santo’s Indian team, which provides equity research to asset management institutions investing in the country. “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,” Espirito Santo said in a statement. The Burmans picked up less than 26 per cent in Espírito Santo Securities (India), according to two persons familiar with the development. “We look forward to building a great business together,” said Mohit Burman, director at Dabur India, in a statement. The Burman family owns 68 per cent in consumer products maker Dabur India. Mohit Burman holds a 74 per cent stake in his individual capacity in Aviva Life, while the rest is held by the UK’s Aviva. He also holds a 10 per cent stake in Universal Sompo General Insurance Co. He had also acquired nearly 14 per cent in Punjab Tractors. Lisbon-based Espirito Santo is the investment banking arm of Banco Espirito Santo SA, Portugal’s largest publicly traded bank. The firm is a strong player in its home markets of Iberia and the UK. “Espírito Santo is delighted to work alongside such a highly respected local promoter family as the Burmans, with shared values and long-term commitment to India, and to building a successful investment banking business here,” Jose Maria Espirito Santo Ricciardi, CEO of Espirito Santo Investment Bank, said in a statement. Last year, Espirito Santo had bought a majority stake in UK Securities firm Execution Noble, which had set up shop in India in May 2008. The Portuguese firm has a team of 30 employees in India.