Infrastructure equipment financier Srei BNP Paribas is aiming to increase its market share from the current 28% to 32-35% by this fiscal-end on the back of higher growth in its retail business.

The NBFC, a 50:50 joint-venture between Srei Infrastructure Finance and French major BNP Paribas, said its strong value chain for asset management and newly-developed used equipment financing vertical would help it grow retail portfolio. ?Currently our market share is 28% in infrastructure equipment financing. By the end of March 2015, we can have 32-35% market share. And this will primarily come from retail business,? Srei BNP Paribas chief executive officer DK Vyas told FE.

?Today our retail business consists of 35% of our portfolio and in the next few years we will raise it to 50%. Remaining will be strategic business. That will create a good blend in terms of risk management and quality,? said Vyas. The ticket size of retail equipment finance ranges between R20 lakh and R65 lakh. The company?s total disbursement in the last financial year stood at R7,900 crore. It aims at 10% year-on-year growth in disbursement in the current fiscal.

The company said it has strengthened its value chain in the last two-three years during the slowdown period and the value services developed would help it build the retail business. Total asset under management was Rs 18,307 crore as of March 31, 2014.

The NBFC would also leverage its used equipment financing vertical, which was developed in last one year, and strong dealer network to grow its retail portfolio. ?So far, this (used equipment finance) was an untapped market, but it will be a key game changer in construction equipment financing business model. Our retail used equipment financing portfolio currently consists of 5% of total business, but we want to take it up to 15% in next three years,? Vyas averred.

Srei BNP Paribas is also planning to grow its presence in non-infrastructure segments like IT and healthcare in this financial year. To get into verticals like IT, healthcare and agriculture for financing opportunities, the joint-venture company has created alliance model with BNP Paribas to manage the risk better.

?We don?t have much experience in IT, healthcare and agriculture sectors. There we got the a good support from BNP Paribas and we want to go into these verticals under the alliance model,? said the CEO.

In agriculture sector, the company is financing tractor, harvester and irrigation equipment, and wants to enhance their disbursement cautiously. In healthcare, the NBFC has Rs 700-800 crore portfolio and is now planning to foray into financing retail healthcare equipment to fund small diagnostic centres, among others.

According to Vyas, although 2013 had been an ?extremely bad year? for the country?s infrastructure sector, it could witness growth picking up in the next 3-6 months as the new government has the ‘political will’ for infra growth.

?With the government focussing on infrastructure, we firmly believe by the end of 2014 and beginning of 2015, the country will see infrastructure equipment industry again growing 25% if everything goes as per plan. Last year, the industry had de-grown 20%, this year it could be flat or a marginal growth,? he added.