Shriram City Union Finance Ltd is India's premier financial services company, specializing in retail finance. The company is a part of three decade-old Chennai-based Shriram Group, India's premier financial services chain. The range of services offered by the company is financing for consumer durables, two wheelers, three wheelers, four wheeler finance, both new and pre-owned, passenger and commercial, personal loans, small business loans and loan against gold. They have over 650 business outlets across the country.
The company has tie-ups with major dealers and top manufacturers across the country, giving them the advantage of quick pay-offs and sanction of loans. They focus on semi urban and rural areas with products routed through either chit fund network of Shriram Chits or non chit fund network including dealers.
Shriram City Union Finance Ltd was incorporated on March 27, 1986 as a private limited company with the name Shriram Hire Purchase Finance Pvt Ltd. The company started their operations with truck financing. In October 29, 1988, the company became a public limited company and the name was changed to Shriram Hire Purchase Finance Ltd.
In March 1990, City Union Bank Ltd acquired shareholding to the extent of Rs. 20 lakh (200,000 shares at par) after obtaining the necessary approvals from the Reserve Bank of India. Consequently, the name of the company was changed to Shriram City Union Finance Ltd. The company is registered as a deposit taking asset financing NBFC with RBI and went public in 1994.
Prior to 2002, the company was exclusively engaged in transport finance with special emphasis on financing pre-owned commercial vehicles to small road transport operators. In the year 2002, the company discontinued the truck financing business (except for trucks > 10 year old), as that business was consolidated in its sister concern (viz. Shriram Transport Finance Ltd). Since then, the company product lines had expanded to include financing of consumer durables, two-wheelers, three-wheelers, tractors, commercial vehicles and non-commercial vehicles, personal loans and enterprise funding.
In the year 2002, the company entered the business of consumer durables financing through a tie-up with ICICI Bank. During the year 2004-05, the company increased the production capacity of generation of power by wind mills from 7,800 kw to 12,800 kw. Also, their shares were listed on the National Stock Exchange with effect from April 4, 2005.
During the year 2005-06, the forayed into the customer finance segment. The company ceased to be a subsidiary of Shriram Financial Services Holding Pvt Ltd with effect from March 31, 2006, consequent to the transfer of 1,44,21,462 equity shares aggregating 53.22% of the paid up capital of the company to Shriram Enterprises Holding Pvt Ltd. Thus, the company became the subsidiary of Shriram Enterprise Holdings Pvt Ltd.
In April 24, 2007, the company promoted a subsidiary company, namely Shriram Non Conventional Energy Ltd. During the year 2007-08, they divested the shares held in Shriram Non Conventional Energy Ltd, and thus Shriram Non Conventional Energy Ltd ceased to be a subsidiary company with effect from March 20, 2008.
During the year 2008-09, the company transferred the Bio mass plant to Shriram Non Conventional Energy Ltd with effect from January 10, 2009 and making Shriram Non Conventional Energy Ltd as a wholly owned subsidiary company. This transfer is mainly to carry out only the core business of financing in the company.
In July 2010, the company decided to set up a wholly owned subsidiary company for doing housing finance, mortgage finance, other related finances and such other activities as may be decided from time to time.