Shriram Group, the Indian financial services firm, is entering the wealth management industry through a joint venture with Dhruv Mehta Investment Advisors, an Indian investment advisory company, media reports say.

Shriram Wealth Advisors, the new venture, will be 80 per cent owned by Shriram Group, while the remaining 20 per cent will be owned by Dhruv Mehta, the founder of Dhruv Mehta Investment Advisors. Mehta is also reportedly joining Shriram Wealth as mentor and director. 

The plan is still in the "initial stages," according to news reports, but Mehta has already confirmed the development to the local media. 

"We have not yet started hiring relationship bankers for this business as the strategy is in the process of being worked out by the new leaders. We are looking at three or four different business models, which are being debated internally for this venture," Mehta was quoted as saying in a report by Financial Chronicle. 

Shriram offers commercial financing, chit funds and insurance. Its decision to enter wealth management supports industry forecasts that India's affluent population is set to expand further in the next years. According to the 2011 World Wealth Report by Capgemini and Merrill Lynch, high net worth individuals in India saw their wealth grow 22 per cent in 2009-10 to $582 billion, from $477 billion in the previous year.