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We
are one of the largest asset financing NBFCs in
India
with a niche presence in
financing pre-owned trucks and Small Truck
Owners (STOs).
We
are a part of the "SHRIRAM" conglomerate which
has significant presence in financial services
viz., commercial vehicle financing business,
consumer finance, life and general insurance,
stock broking, chit funds and distribution of
financial products such as life and
general insurance products and units of mutual
funds. Apart from these financial services, the
group is also present in non-financial services
business such as property development,
engineering projects and information
technology
Our
Company was incorporated in the year 1979 and is
registered as a Deposit taking NBFC with Reserve
Bank of
India
under Section 45IA of the
Reserve Bank of India Act, 1934.
STFC decided to finance the
much neglected Small Truck Owner. Shriram
understood the power of 'Aspiration' much before
marketing based on 'Aspiration' became
fashionable.Shriram started lending to the Small
Truck Owner to buy new trucks. But we found a
mismatch between the Aspiration and Ability. The
Truck Operator was honest but the Equity at his
command was not sufficient to support the credit
levels required to buy a new truck.
We
did not have the heart to send the Truck
Operator back empty handed; we decided to fund
Pre-owned Trucks. This was the most momentous
decision that we made. What followed was Sheer
magic.
From
Driver to Owner, even if only of a Pre-owned
Truck and from Pre-owned Truck to the New Truck,
we have been with him in his journey of
Prosperity as he has been our partner in
our
road to success and
leadership.
For
us at Shriram, credit-worthiness of the Small
Truck Owner has always been an article of faith.
This faith has guided our journey from our
pioneering days in financing Small Truck Owners
to the present day leadership. Today we are not
only the leader in Truck Finance; we are also
India
's largest Asset Based
Non-Banking Finance Company.
The
inability of the economists to capture data
relating to the economic activity of the
informal sector has resulted in its neglect at
the policy-making levels in the
government.
The
distribution of Truck Ownership being scattered
among a large number of individuals has resulted
in this very important group being missed by the
institutional radar.
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It
is estimated that 80%
of trucks in the country are in the hands of
individuals
Our
journey has seen us making several innovations
while we stood at the very edge of Organized
Finance. The Banks and Institutions were guided
by the Economists' vision; the Small Truck Owner
who always fell on their blind side was given
the miss.
With
a track record of about 30 years in this
business, we are among the leading organized
finance provider for the commercial vehicle
industry with a focus to provide various credit
facilities to STOs. We have also added passenger
commercial vehicles, multi-utility vehicles,
three wheelers, tractors and construction
equipment to our portfolio, making us a
diversified, end to end provider of finance
solutions to the domestic road logistics
industry. Besides financing commercial vehicles
(both new and pre-owned) we also extend finance
for tyres, engine replacement and working
capital. We also provide ancillary services such
as freight bill discounting besides offering
co-branded credit cards.
Our pan-India
presence through our widespread network of
branches has helped in our overall growth over
the years. As on March 31, 2009 we had 482
branches and tie up over 500 private financiers
across the country. As
on March 31, 2009 our total employee strength
was 12,196, including more than 6,000 product
executives and credit executives who are
colloquially referred to as our field
force.
We
have demonstrated consistent growth in our
business and profitability. Our assets under
management have grown by a compounded annual
growth rate (CAGR) of 68.01% from Rs.
2,817,857 lakhs (which comprise of AUM in the
books of Company of Rs. 1,58,700.28 lakhs,
assets securitised / assigned of Rs. 28,368.43
lakhs and portfolio managed by the Company of
Rs. 1,05,090.64 lakhs) in FY 2005 to Rs.
23,28,110.65 lakhs (which comprise of AUM in the
books of Company of Rs. 17,92,397.14 lakhs,
assets securitised / assigned of Rs. 5,31,092.91
lakhs and portfolio managed by the Company of
Rs. 4,620.60 lakhs) in FY 2009. Our total income
and our profit after tax increased from Rs.
34,568.84 lakhs and Rs. 4,932.38 lakhs in FY
2005 to Rs. 3,73,112.97 lakhs and Rs. 61,240.21
lakhs in FY 2009 at a CAGR of 81.25%
and 87.71%, respectively
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