Shriram Finance Limited’s Shriram Transport Finance Company, the largest lender of commercial vehicles, and Shriram City Union Finance, the largest two-wheeler financier and leader in micro, small, and medium enterprise (MSME) lending (Shriram Finance) has announced a merger.
Shriram Finance will be a diverse player with a strong net worth of Rs 40,900 Crs and assets under management (AUM) of Rs 1,71,000 Crs, serving over 6.7 million consumers across India. The Company’s growth plan will be centred on the self-employed and the MSME industry.
Umesh Revankar, a long-serving Shriram executive, will serve as the amalgamated entity’s Executive Vice Chairman. Commenting on the merger he said, “It is the natural culmination of a journey of 43 years. With the balance sheet strengthened through the merger, we can serve the needs of the market better than ever before. As a customer-focused company, we can bring more products and assist them with access to credit faster. We have invested heavily in technology to improve efficiency and customer service levels. We are looking forward to an exciting phase of sustained double-digit growth.”
YS Chakravarti, MD & CEO, Shriram Finance commented, “The timing of the merger is brilliant. As India is growing, we are seeing robust demand for credit among MSMEs. We are always close to the market with our 3600+ locations. All our business segments– financing commercial vehicles, MSMEs, Personal Loans, Gold Loans, or Vehicle Loans – are poised to grow.”
Shriram Finance also announced the appointment of Mr Jugal Kishor Mohapatra as Chairman and Mrs Maya Sinha as Independent Director.
In addition, the business unveiled its development plan, Driving the Self-employed and Small Business Economy, and has identified five strategic pillars to fuel future growth:
1. To be the most favoured financial services location in the country.
2. Customers that are self-employed, small enterprises, or new to credit should be prioritised.
3. To grab a greater wallet share, diversify your product portfolio across credit, insurance, and investment.
4. Long-term, generate an industry-leading Return on Asset (ROA) and Return on Equity (ROE).
5. Delivering client satisfaction in rural and semi-urban regions via the use of technology and empowered personnel
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