Magma Shrachi to spread wings in South

To double disbursements.

Kolkata-based Magma Shrachi Finance Ltd is looking at doubling disbursements in fiscal 2008 and has set a target of Rs 5,000 crore.

The company which has a major presence in the northern and eastern regions of the country, is spreading its wings down south and expects the southern market to contribute around Rs 1,100 crore in the current fiscal.

Magma disbursed Rs 2,544 crore in fiscal 2007 and had assets under management of Rs 6,300 crore as on June 30, 2007. The company disbursed Rs 728 crore in the first quarter of fiscal 2008, an increase of around 67 per cent over Rs 430 crore during the same period a year ago.

Having launched its Tamil Nadu operations two months ago, the company has set a target of disbursing Rs 200 crore in the current fiscal.

"Tamil Nadu is the largest market for commercial vehicles and we expect the state to contribute significantly to our business growth in the coming years. We will mainly focus on commercial vehicle financing, car financing and construction equipment finance in the state," Kaushik Sinha, GM, corporate communications and training, said.

"Magma, with a major presence only in northern and eastern India, has a market share of 9 per cent in the construction equipment segment, 2 per cent in the car financing segment and 5.5 per cent in the commercial vehicles segment. But, now with our entry into the southern market, we expect our market shares in each segment to grow further," he added.