Will keep NBFC separate from core business, says Pidilite MD Bharat Puri

Talking about the capital allocation involved in the business and how the company plans to gain an advantage from its lending business, he said that the venture is likely to deepen the company's connect and give it new information.

"From a risk perspective, we have the information, we've dealt with them for years, we know exactly how much they purchase, what's their buying history, what's their payment history, what is their credit worthiness, so on and so forth," Puri said.

Also Read: Pidilite Q1: Solid execution gets traction

"From a capital allocation point of view, very small amounts of capital are required. This is a venture we want to keep at an arm’s length from the core Pidilite business so it will be housed separately and run separately but you would see that it obviously will deepen our connect. Hopefully, it will build further loyalty, give us even further information and there is nobody else who has this information on this ecosystem," Puri said.

When asked about the risk perspective involved in the NBFC business, the MD said that the company enjoys familiarity with its ecosystem.
Puri said that the company plans to operationalise the business by launching a pilot project for six to nine months.

"We will first actually just pick one small geography for the next 6-9 months. In that geography, we will test all of our assumptions. We will be in a much better position to answer your questions both on risk profile as well as management bandwidth," Puri said.