Shriram Transport Finance Company (STFC), which recently acquired Rs 1,200 crore assets from GE Capital India's transportation finance portfolio, is looking aggressively for more acquisitions.
STFC is a non-banking financial company (NBFC) in India with a niche presence in financing pre-owned trucks and small truck owners.
"We are always looking for acquisitions as we are growing very fast. We will acquire assets of more than Rs 3,000 crore in the next 12-18 months," the company's Managing Director R Sridhar told PTI here.
STFC has a market share of 70 per cent in old vehicle financing and 30 per cent in new vehicles.
The company is eying acquisitions which would give it scale, he said, adding that several multinational NBFCs into transport and construction financing are its target segment.
"There are many multinational non-banking financial companies, which are into transport and construction financing that we can acquire as it would make business sense," Sridhar said.
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He, however, did not divulge how the company would fund the acquisitions.
The company is growing at around 25 per cent year-on-year and "we will continue this momentum in the coming days", Sridhar said.
The company recently acquired Rs 1,200 crore of assets of GE Capital India's transportation finance portfolio, which, Sridhar said would help the company improve its margins. This acquisition was funded entirely through internal accruals.
He further said the company's business in the commercial vehicles (CV) segment was picking up post-October.
"The government's stimulus packages helped," Sridhar said, adding that the next 3-4 years would be good and "we are eying a 20 per cent growth in the CV segment."
Going forward, construction equipment-financing presents a good business opportunity and "we plan to capitalise on this opportunity", he said.
The company has 500 branches pan-India and is dealing around 1,000-1,200 applications for vehicle finance per day, Sridhar said.