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Edelweiss to invest 10% of PBT for biz experiments every yr

twitter-logo PTI        Last Updated: March 7, 2018  | 22:42 IST

Mumbai, Mar 7 (PTI) The Edelweiss Group has set a target of investing 10 per cent of its pre-tax profits for innovative "experiments" in business models and tech which will help bolster revenues in future.

"The idea is to invest small amounts today in order to have an asymmetric advantage in the future. Not all of the ideas which are being pursued turn into a success, but there are huge learnings," chairman and chief executive Rashesh Shah told reporters today.

Speaking on the sidelines of an event here, he said the diversified financial services company carries out 300 experiments at any given point of time.

The group has been doing this on a focussed basis for the last four years.

Citing examples of the ideas which started as an experiment, he referred to starting an asset reconstruction company (ARC), which has gone on to become a very successful venture now.

He said the company invested Rs 5 crore in the company, which is set to deliver a pre-tax profit of Rs 250 crore for fiscal 2017-18.

Shah said what is important in such experiments is to "fail fast and learn quickly".

The group has an allocated budget for such experiments, which goes from the corporate side and does not go from a particular business verticals profit and loss account, he said.

There is a rigorous process in which the pros and cons of every idea are debated before a decision to invest resources and energies into it, he said. PTI AA NP

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