Shriram Transport aims at Rs 20000cr assets in 4 yrs

With an ambition to take its assets under management to Rs 15,000-Rs 20,000 crore in the next three-four years, Mumbai-based Shriram Transport Finance Company Limited (STFC), a leading player in the non-banking financing company (NBFC) segment and the country's largest truck financing company, has drawn up a growth plan which will be supported by a media blitz.

Addressing mediapersons here on Monday, STFC managing director R Sridhar said, "We currently manage assets to the tune of Rs 9,000 crore. To move towards the Rs 15,000-Rs 20,000 crore mark in the next four years, which requires huge disbursements, and to retain our leadership position in the NBFC segment, we have charted an ambitious growth plan comprising advertisements, innovative schemes and events spread over the next six months."

The company's intensive publicity campaign include print and electronic advertisements, hoardings, wall paintings, events, transporter meets, road shows and special programmes designed for the welfare of small truck owners across the country.

It has already roped in Bollywood veteran Dharmendra as its brand ambassador, who would be attending the company's event and spend an hour or two with around 300 small truck owners and their families in Hyderabad.

"Similar events are planned in Lucknow, Mumbai and Kolkata in the coming months," Sridhar said. He, however, was reluctant to divulge the amount earmarked for the campaign.

In order to provide value-added services to truck owners, he said, the company was planning to introduce innovative products including finance for reconditioned trucks, truck exchange programmes, tyre finance, working capital and engine replacement finance, besides free mobile phones, credit cards and loyalty reward programmes.

Stating that the new truck acquisition financing interest rate is as low as 10 per cent and that of used trucks was traditionally high at 21 per cent, Sridhar hoped this to come down to 15-16 per cent in the next five years.

"Merril Lynch has provided Rs 900 crore to buy our truck loan portfolio recently, and we will continue to raise funds through retail markets and foreign financial institutions, 70 per cent of which would be for used trucks," he said.

According to him, there are 28-30 lakh trucks in the country, 20 per cent of which is part of the company's customer base. STFC currently has 5 lakh customers across its 300 branches.