Exclusive: Shriram Transports MD and CEO Umesh Revankar speaks to Anil Singhvi on scrappage policy, fund raising and business outlook
In todays episode of News Par Views show, Zee Business Managing Editor Anil Singhvi spoke to Umesh Revankar, Managing Director (MD) and Chief Executive Officer (CEO) of Shriram Transport Finance, one of the leading NBFC companies, which had started operations in 1979. The company has been there in the commercial vehicle financing sector for more than four decades. (#NewsParViews)
In today’s episode of News Par Views show, Zee Business Managing Editor Anil Singhvi spoke to Umesh Revankar, Managing Director (MD) and Chief Executive Officer (CEO) of Shriram Transport Finance, one of the leading NBFC companies, which had started operations in 1979. The company has been there in the commercial vehicle financing sector for more than four decades. (#NewsParViews)
On Shriram Transport’s plans to raise funds, Revankar said that fund raising regularly happens in finance business. The fund raising announced this time is to meet company’s lending targets for this quarter. The company has been able to successfully meets its lending targets over the years, he said.
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The lending target in this quarter will be slightly higher than the last quarter. He said that the demand for credit is good in rural areas and the demand is coming from the infrastructure segment.
The company has assets worth 1.15 lakh cr on its balance sheet.
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Shriram Transport Business Outlook
The month-on-month sales is improving for the commercial vehicle segment. It will not be correct to make comparisons with the last year sales, he said. He said January and February months were good and March is also expected to remain good.
In the LCV (Light Commercial Vehicle) segment, the month-on-month and year-on-year sales are going strong, he further said.
On Scrappage Policy
Though there is no final word till now on the scrappage policy, there could be two scenarios, he said. There could be compulsory scrappage and voluntary scrappage. He said that the government could announce voluntary scrappage policy, now.
Under this, the government would discourage vehicles that are more than 15 years old. The company currently finances 5-10-year-old vehicles. Anybody who has a vehicle which is more than 10-years old will look for a younger vehicle instead of new vehicle. This will increase demand for credit and the resale value of vehicle between 5 and 10 years will go up significantly.
Shriram Transport’s business will gain from this, he said.
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