I am delighted to be back on the board of the company as Chairman. I
fondly recall when we first started the venture in 1978 as an equipment
leasing company, and now when I look at the companys spread of more
than 230 branches in India and the many product categories we exist in,
I experience the satisfaction of a job well done.
During the year, the companys disbursements grew by 94% and assets
under management grew by 80% to take the assets under management to Rs.
Today, the company has a large bouquet of products in the assets
division with customers across New and Used Trucks, Prime & Branch
based Personal loans, Two Wheeler loans, Home Equity loans and Loans to
Promoters against Securities and Property. This along with Wealth
Management Products such as Mutual Fund Advisory, Securities and
Insurance Distribution Services, completes our service offering.
Vehicle Finance did well this year and our Used Truck business is
maturing with a presence in more than 56 branches across the country.
The Consumer Finance business which commenced two years ago has
acquired a customer base of over 2,00,000 customers. This business now
operates from more than 90 branches in India. The year also saw the
launch of two wheeler loans with a preferred financier arrangement with
Honda Motor cycle & Scooter India Ltd. Home Equity (lending against
unencumbered properties) business, which was launched last year in key
southern locations, went national this year with the product being
offered across 15 locations in India. As this asset class expands in
our country and becomes a significant part of the home loans market I
see the product coming into its own in the next fiscal.
Business Finance diversified its portfolio with the launch of Retail
loan against shares and the asset book was over Rs. 1087 crores at the
end of March 2008 - a growth of about 22% over last year.
The Wealth Management Business grew significantly with the set up of 49
new branches to deliver wealth advisory, broking and insurance
services. We are in the investment phase of this business and given the
expanding Indian economy and increasing disposable wealth in India, we
expect this business to generate significant fee income for us going
As you can see, it has been a busy year for us. We are now positioned
to become a full service Retail Financial Company. Both the partners,
the Murugappa group and DBS Bank, are excited about the companys
business prospects and look forward to contributing to its continued
growth in the near future.
Thank you for your continued support.