Shriram Transport Finance Company (STFC) is now betting big on new areas such as used passenger vehicles (PVs) and tractors.
“While pre-owned commercial vehicles will remain as our mainstay, we have been broad-basing our product portfolio and actively penetrating into pre-owned passenger vehicle (4-wheelers as well as 3-wheelers) and farm equipment segments for growth and business expansion. We bet a lot on these and expect to see a lot of growth from two segments in the coming months,” P. Sridharan, Executive Director, told this correspondent.
In used-PV segment, the company has partnered private financiers to reach out to more people. “We have built a portfolio of about Rs.4,800 crore through them” he added.
Mr. Sridharan also stated that increased competition had brought the interest rates down significantly for the buyers. The company has also made strong inroads into used tractor segment and has built a portfolio of one lakh equipment. “To our satisfaction, this has been the best portfolio ever,” he said. While he attributed the success in used-tractors to strong agricultural growth and commercial use of tractors in recent years, its strategy of opening rural centres have also aided the growth. It has set up over 600 rural centres to tap the customers in this segment.
