Hinduja Leyland Finance Limited (HLF), promoted by Hinduja Group flagship Ashok Leyland has received the certificate of registration from the Reserve Bank of India, clearing the deck for commencement of operations covering financing of commercial vehicles and allied vehicle financing.
HLF is already in readiness to commence operations in 130 centres covering 16 states. Through rapid branch expansion, HLF plans to have a presence in all Indian states in one year’s time and has targeted network strength of 300 centers in three years.
“We hope to replicate the success of Ashok Leyland Finance, drawing from its proven strengths and the immense goodwill among all stakeholders”, said Mr S Nagarajan, Director In Charge. Associated with Ashok Leyland Finance since inception in 1987, Mr. Nagarajan is credited with building the Company to its premier stature among NBFCs before joining IndusInd Bank as Joint Managing Director, following the merger of Ashok Leyland Finance with IndusInd Bank.
The initial capital of Rs 100 crore will be contributed by Ashok Leyland, Ashley Holdings Ltd and Ashley Investments Ltd. The Company is already in discussion with leading bankers for funding to support the planned disbursement of Rs 850 crores in the first year.
“Ready as we are with technologically superior products and additional capacities built to support our growth, HLF provides the vital link of vehicle financing, facilitating vehicle acquisition by our customers. I am confident that under Mr. Nagarajan’s proven leadership, HLF will prove to be a significant tool for market penetration and expansion for Ashok Leyland”, said Mr. R Seshasayee, Managing Director, Ashok Leyland.
HLF will have a larger role in the offing, of supporting Ashok Leyland’s proposed foray into Light Commercial Vehicles and Construction Equipment, wherein product roll outs are scheduled to commence in 2011.