Godrej Capital plans to grow AUM to Rs 50,000 crore by 2028

Chennai, Oct 19: 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.

Capital Requirement

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 January 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.

Key Focus Areas

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.

Nirmaan - A New Digital Platform

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.

Godrej Capital's plan to grow its AUM to Rs 50,000 crore by 2028 is an ambitious one, but the company has a strong track record of success. The company's focus on MSMEs and home loans is also well-aligned with the government's priorities. With its new digital platform, Nirmaan, Godrej Capital is well-positioned to achieve its goals.