Godrej Industries (GIL) has communicated the following –
- GCL, the financial subsidiary of GIL was started in 2020 and since then has been providing home loans in select geographies. It is the holding entity for Godrej Housing Finance (an HFC) and Godrej Finance Limited (an NBFC).
- It is currently present across Mumbai, Bengaluru, Delhi NCR, Ahmedabad, and Pune and will soon be operational in six new cities, i.e., Jaipur, Chandigarh, Hyderabad, Chennai, Indore and Surat.
- The Company aims to build a Balance sheet size of Rs 30,000 crore by 2026.
- GIL has committed to invest Rs 1,500 crore of equity and expects a total equity requirement of Rs 5,000 crore by 2026 to achieve the targeted scale of business.
Given Godrej’s reliable track record in building new businesses, I would be watching developments in this space closely. The finance business also has synergies with the group’s other ventures including real estate and consumer durables.
There are further updates from Manish Shah, CEO, Godrej Capital
Manish mentioned that home loans is a low-risk, low reward product and their plan was always to focus more on higher yielding small businesses, while keeping risk under control.
Further updates from Manish.
FY 23 end book is estimated at Rs 5,500 cr
FY 24 target is Rs 12,000 cr book
5 yr target is to increase loan book to Rs 35,000 cr
Godrej Capital has launched the digital platform Nirmaan to provide a bouquet of services to MSMEs
Godrej Industries will infuse further Rs 1,200 crore in the current FY 24 for Godrej Capital’s growth. It has so far infused Rs 1,500 cr.