The Shriram Group announced on Tuesday that it will enter the asset reconstruction business with focus on the collection of bad debt in the retail segment. The company is awaiting the regulatory approval to begin the asset reconstruction operations. The initial investment into the asset reconstruction company is Rs 300 crore.
“We found that most ARCs in India do corporate loans. The number of players in the retail segment is limited,” Shriram Finance executive vice chairman Umesh Revankar said at a press meet in Jaipur.
He added that this company will operate in all retail segments, barring microfinance. Here, the group is looking at an average ticket size of Rs 20,000.
Separately, the group will also expand its wealth management services. The wealth management will be housed under Shriram Credit, a wholly-owned subsidiary of Shriram Capital. The company is targeting customers with investible assets between `25-50 lakh.
The group has already put in place teams to manage each of these businesses.
Currently, the Shriram group through its various entities operates in segments including lending, asset management, stock broking, general insurance and life insurance, among others. These businesses are housed under the holding company Shriram Capital.
“The wealth management business in already in place in some form or fashion. We need to keep strengthening it,” Shriram Capital managing director DV Ravi said on the side-lines of the press meet in Jaipur.
(The writer was in Jaipur at the invitation of Shriram Group)