Shriram City Union Fin to expand small enterprise lending ops

Company plans to aggressively focus on Gujarat

Shriram City Union Finance Ltd, a part of the Rs 60,000-crore Chennai-based Shriram Group, is planning to expand its footprint in western and southern India and to make a foray into eastern and northern regions.

"We are looking at rolling out full range of products at all business outlets; and also focus on building and tapping long-term customer relationships across Shriram ecosystem.

"We intend to consolidate our position and operations in western and southern parts of India while entering newer markets such as eastern and northern part of India," Shriram City MD G S Sundararajan said in a statement here.

Shriram City, the largest NBFC focused on the non-corporate finance sector, now wants to aggressively focus on Gujarat, and its entrepreneurs coupled with a special focus on tier II & III towns. The company plans to add six new branches to add to the 9 existing branches taking the total number of branches in Gujarat to 15, a company statement said here.

Shriram City's current asset size in Gujarat is Rs 212.88 crore and existing customer base of 1,364. Gujarat makes a secured business contribution of Rs 161.20 crore (76 percent of total asset size) and an unsecured business contribution of Rs 51.67 crore (24% of total asset size).

"Every month, we are targeting 50 new customer acquisitions and additional disbursement to the tune of Rs.10 crore in Gujarat. We intend to have an asset size by March '14 to be in tune of Rs. 300 crore," Sundararajan said.

Shriram City has disbursed Rs 13,315 crore as of June 2013 and current assets under management are Rs 7,032 crore as of June 2013.