I am delighted that, in my first message to you as chairman, I have the
privilege of sharing with you the good news of all-round growth at
During the year, the companys disbursements grew 96% and assets under
management grew 95%, to almost touch the Rs. 4500 crore mark.
In the commercial vehicle finance business, the company continued to
manage its product-mix judiciously to leverage the market growth in new
vehicles while benefiting from the higher yields in used vehicle
The companys entry into consumer finance has been well received by
customers. The focus was on quickly catapulting the personal loan
business pan-India by combining aggressive distribution with prudent
credit norms. In the coming year, the company will aim to extend this
business to the next level cities in the country.
Consequent to the entry into consumer finance, the status of the
company as an Asset Finance Company (AFC) has undergone a change.
The company also made a good beginning in home equity business with a
pilot launch in four cities. The experience has been exceptional and
the company aims to have a national rollout of this product in the new
Our foray into new product-markets was really exciting. Now the company
is ready to move on to the more challenging stage - that of attaining a
position of leadership in each of its businesses. This will involve
simultaneously managing further expansion and the establishment of
sound, enterprise-wide systems and processes that support growth. In
other words, disciplined growth focused on sustained profitability will
remain the central theme of our companys strategy.
Further, having set the fund-based businesses on a new growth
trajectory, Cholamanadalam DBS is embarking on a similar journey in the
fee-based subsidiaries of Distribution and Securities. Already, the
business teams have commenced implementing ambitious plans for the
coming year. The performance of the asset management company is not
very satisfying and the board is looking at various options to improve
2006-07 was the first full year of the companys operations as a Joint
Venture. Both the partners, the Murugappa group and DBS Bank, are
excited by the companys business prospects and look forward to
contributing to its continued growth in the near future.