CHENNAI: The Kolkata-based Magma Shrachi Finance, an asset financing company, has entered Tamil Nadu to ramp up operations. It plans to enhance its presence in the under-penetrated rural and semi-urban markets, according to SV. Venkatesan, Vice-President and Business Head.
He said Tamil Nadu was a large market, especially for commercial vehicles and construction equipment loans and the company would utilise this opportunity. It had fixed a target to disburse Rs. 200 crore worth of retail loans in the current fiscal.
The company had opened seven branches in the State and Chennai would be the regional office.
Magma Shrachi has a well-diversified product portfolio comprising commercial vehicle finance, car and utility vehicle finance, construction equipment finance, used commercial vehicle finance, strategic construction equipment finance, and fee-based business such as general insurance and personal loans. It had assets under management of over Rs. 6,300 crore as on June 30, 2007.
Magma Shrachi had recently set up a joint venture — Magma ITL Finance Ltd. — with International Tractors (ITL), a manufacturer of Sonalika brand of tractors, to exclusively finance tractors and farm equipment. The joint venture will have a paid-up capital of Rs. 25 crore with 74 per cent stake by Magma and 26 per cent by ITL, said Mr. Venkatesan.
MSFL operates through 155 branches in 20 States and employs 3,480 people.