Sudhir Valia of Sun Pharmaceuticals may buy stake in brokerage company Fortune Financial Services

Sudhir Valia, executive director of Sun Pharmaceuticals and brother-in-law of founder Dilip Shanghvi, is in talks to buy a stake in a brokerage firm, people close to the situation said. Valia, who is also one of the co-promoters of Sun, may buy 20% held by Poonja family in Fortune Financial Services.

Fortune was founded in 1991 by JT Poonja and Nimish Shah and operates about 30 branches and about 100 franchisees across India. The sluggish financial services industry and the decline in stock market volumes have affected all brokerages across the country, forcing companies slash jobs and shut branches. Some brokerages are trying to attract investment, either from high net-worth individuals such as Valia or from global companies.

Hong Kong-based Philip Capital recently bought bankrupt MF Global's Indian operation MF Global India.

Nimish Shah, managing director of FFSL declined to comment. Sudhir Valia said he has no comment to offer. Valia is a whole-time director of Sun Pharmaceutical Industries since 2005 and is responsible for finance, commercial operations, projects and quality control. He is also director of Caraco Pharmaceutical Laboratories since 1997 and Taro Pharmaceutical since 2010.

People close to the transaction said that Valia is interested in helping Fortune's NBFC business expand and that the current management team headed by Nimish Shah will continue to run the company. Shah and Poonja together own about 50% of Fortune.

Europe-based Nogard Investment holds around 14% stake in FFSL through an investment made in 2008. Britain-based investors Lytton Grove Corp and Bomin Finance together hold 20% in the company.