Adhesive manufacturer Pidilite Industries said on November 8 that it plans to enter the lending business and focus on providing credit through small retail loans.
“The new business would provide credit to its domain ecosystem to support their business growth. This credit will be provided primarily in the form of small value retail loans,” Pidilite said in a press release.
The company said that it plans to acquire the promoter group’s non-banking financial company (NBFC), Pargro. “We have identified an existing NBFC Pargro Investments Private Limited, belonging to the company’s promoter group. Pargro does not have any lending operations presently and is debt-free as on October 31, 2023,” the company informed in the press release.
The acquisition of the promoter group NBFC, which is expected to be of Rs 10 crore, is planned to be completed before March 31, 2024. “The transaction will be completed post execution of the SPA and necessary documents and upon obtaining the necessary RBI approvals,” the company said.
Further, after setting up the business, the company plans to invest Rs 100 crore in different tranches.
“Over the next two years, to build the new business, the company expects to invest up to Rs 100 crores in tranches, through an optimum mix of equity and debt,” Pidilite added.
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