Chennai-based Murugappa Group, the Rs 13,617-crore business conglomerate which has interests in sectors ranging from auto components to sugar, has recast its financial services businessess. As part of its expansion plan, Murugappa?s financial services entities will get into newer frontiers such as gold loan, agri financing and infrastructure lending. As per the new strategic vision and new brand identity unveiled on Friday, the group?s financial business entities Cholamandalam Investment & Finance Company, Cholamandalam Securities, Cholamandalam Distribution Services, Cholamandalam MS General Insurance Company and Cholamandalam MS Risk Services will sport a new logo. The group?s NBFC, Cholamandalam Investment and Finance Company (CIFCL) is among the top 5 NBFCs in the country operating in vehicle finance, home equity, corporate and mortgage finance segments with subsidiaries in the broking and wealth advisory space. CIFCL has been emerging as a high growth company in the retail lending space with a branch network of over 220.
Chola MS is a significant player in the general insurance business and has 113 branches and over 7500 agents across the country and has achieved a gross written premium (GWP) of Rs 785 crore in 2009-10.
Elaborating on the strategic vision, A Vellayan, executive chairman, Murugappa Group said, ?Cholamandalam has been one of our strongest brands and is fondly called Chola by all. Hence we found it only apt to make this our brand name to further deepen our relationship with customers and stakeholders. The new brand identity and the strategic vision combined with our inherent strengths in terms of pan India network and infrastructure, gives us the thrust to move ahead to a premier position in the sector.?
He said in Murugappa Group?s vision, financial services businesses have a significant role in terms of the business contribution. More importantly, as two direct- to – customer brands, they play a vital role in carrying our group?s brand identity forward among the larger population,? he added.
Vellayan Subbiah, MD, Cholamandalam Investment and Finance, said, ?the group’s financial services companies will grow at 25% which will come out of the existing product lines such as vehicle finance and home equity. We are also planning to roll out new products such as gold loan,agri financing and infrastructure funding in another four months? time.?
N Srinivasan, lead director, financial services said, “On the NBFC front, we plan to catch up for the lost speed. Our target is to double assets under management from the current level of Rs.8000 crore in the next three to four years and regain our position as a pre-eminent player in the industry, leveraging our expertise in asset financing, especially vehicle finance. ”