Godrej Capital to enter the crowded NBFC market of Chennai in the next couple of months – Times of India

Chennai News

Chennai: Godrej Capital, the financial services arm of Godrej Group, will soon enter the Chennai market. The lender will strive to capture about five per cent of market share in a city, where homegrown NBFC leaders such as Chola, Equitas and Sundaram Finance, will pose a major challenge for the less than two-year-old firm. At the national level, it looks at having a 1% market share in the business four years down the line.
Godrej Capital’s entry into the city is part of an expansion plan in six cities including Chandigarh, Hyderabad, Indore, Surat and Jaipur in the next couple of months. A subsidiary of Godrej Industries and holding company for Godrej Housing Finance & Godrej Finance, the financial services firm is aiming at building a Rs 30,000 crore balance sheet by 2026. In Chennai, it’s prime focus would be on small and medium businesses and home loan segments. Currently, Godrej Capital operates from five cities – Delhi-NCR, Mumbai, Pune, Bengaluru and Ahmedabad with nine branches.
Manish Shah, MD & CEO, Godrej Capital said, Chennai, Bengaluru and Hyderabad were among their important triangle in the south and a huge area of focus. “Our goal is to get into Chennai in the second quarter of this year (July-September) and we would definitely want to expand further into Tamil Nadu. For this year, our focus would be to launch in Chennai and become a lender of choice in the categories we are working with,” he told TOI in a virtual interview. Commencing operations with one branch in the city, it could be expanded depending on the demand, he added.
With a customer base of 5,500 and balance sheet of Rs 2,200 crore, about three-fourth of its portfolio is in the home loan segment and the rest is loan against property. Unsecured cash flow-based lending is likely to be launched later this year. This year’s balance sheet of Godrej Capital, which was launched in November, 2020, is expected to be Rs 6,000 crore.
Responding to a query on the challenges in Chennai, which is already dominated by local NBFC players, Shah said, “It is equally challenging. If you look at markets in Delhi or Mumbai, more of the large players, who start from here, are headquartered in these markets. For any new entrant it is how are you serving certain needs differently.”


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Source: https://timesofindia.indiatimes.com/business/india-business/godrej-capital-to-enter-the-crowded-nbfc-market-of-chennai-in-the-next-couple-of-months/articleshow/92113538.cms