Godrej Capital, the financial services arm of the diversified conglomerate Godrej Group, has planned to grow its assets under management (AUM) to Rs 50,000 crore by 2028, a top official said on Thursday.
The company which commenced operations in 2020 achieved "break-even" in the second quarter of the current financial year, company Managing Director and CEO Manish Shah said here.
To achieve the balance sheet of Rs 50,000 crore by 2028, the company would require an additional Rs 4,000 crore capital, Shah noted.
"We received the license (to launch operations) in October 2020.. we want to grow AUM to Rs 50,000 crore by 2028..This year we expect to reach Rs 10,000 crore that is by March 2024," he told reporters.
"The company received around Rs 2,000 crore as capital from the holding company of the Group. Every year, we require about Rs 1,000 crore as equity capital. To reach Rs 50,000 crore AUM we will require about Rs 4,000 crore," he said.
By 2026, Shah said, the company aims to manage AUM of Rs 30,000 crore, and the key focus areas would be 'MSMEs and home loan' business segment. By 2028, this AUM would be scaled up reach to Rs 50,000 crore.
To a query, he said the current balance sheet of the company was Rs 7,700 crore of which Rs 4,000 crore comprises loans disbursed to micro, small, and medium enterprises segment while the remaining was home loans.
Shah said the company achieved 'break-even' in the second quarter (July-September) but declined to reveal the figures.
The micro, small, and medium enterprises which generate revenue between Rs 5 crore and Rs 50 crore account for majority of the business for the company, he said.
Godrej Capital will soon launch its new digital platform -- Nirmaan -- which aims to provide MSMEs with an inclusive opportunity to grow their businesses.
To launch the "Nirmaan" service, the company has partnered with Amazon Global Selling, Onsurity, Zolvit, for MSMEs to help increase the market reach, simplify legal and compliance, and enhance employee health and welfare among others.