Magma eyes Rs 1300 cr disbursals

The Kolkata-based Magma Leasing hopes to cross the Rs 1,300 crore disbursement mark in the current fiscal against Rs 867 crore achieved in the previous fiscal.

The company is also looking at possibilities of making itself a pan-India company either through organic or inorganic growth.

It has drawn up a three-year time line for emerging a national company with presence in all regions.

"We hope to grow at 56 per cent this year, of which, around 49 per cent will be from commercial vehicle segment, while another 29 per cent will be from cars and the rest at 22 per cent is expected to be from construction equipment," said Sanjay Chamria, managing director.

In absolute terms, the company hopes to disburse Rs 652 crore in the commercial vehicle segment, followed by Rs 399 crore car segment.

The figure for construction equipment is pegged at Rs 301 crore.

"Given the rate of growth, we have cornered the largest market share in car financing in Orissa, followed by ICICI Bank," informed Chamria.

This year the company expects to corner around 22.53 per cent market share in Orissa. In commercial vehicles, the company expects to corner around 15 per cent, while the figure for construction equipment was pegged at 24.13 per cent.

On a national basis, Magma hopes to corner 6.29 per cent in the car segment, while the figure for commercial vehicle sector was 9.19 per cent. For construction equipment it hopes to corner 17.66 per cent.

Magma has made considerable in roads in the semi-urban and rural segment. As much as 58 per cent of its disbursements were in the semi-urban segment followed by 30 per cent disbursement in the rural areas.

"We do not compete with banks and our rate of interests are to some extent higher than those provided by banks, but we have tapped segment where banks as of now cannot enter," Chamria explained.

"We also offer loans to individuals who have the capability of paying monthly installments but do not have papers that make them eligible for a bank loan in rural areas. This is backed by 200 employees dedicated for collection," he added. The company's assets crossed Rs 1,000 crore to touched Rs 1,350 on March 2004.